XML 45 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Condensed Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating activities    
Net loss $ (1,627,174) $ (1,320,437)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 363,460 360,161
Depreciation and amortization 183,303 207,607
Amortization of debt discount to interest expense    468,956
Non cash interest expense on convertible note    4,244
Deferred income tax expense 15,970 15,970
Changes in operating assets and liabilities:    
Accounts receivable 1,285,061 (711,501)
Inventories (304,602) 501,523
Prepaid expenses and other current assets 58,608 (65,651)
Other assets (1,442) 48,055
Accounts payable 417,088 309,930
Accrued payroll and related expenses 43,383 13,135
Deferred income on shipments to distributors (402,354) 118,555
Deferred service revenue 12,314 (68,174)
Deferred rent (8,043) (5,964)
Net cash provided by (used in) operating activities 35,572 (123,591)
Investing activities    
Purchases of equipment and tooling (205,827) (40,488)
Net cash used in investing activities (205,827) (40,488)
Financing activities    
Payments on capital leases (6,202) (6,439)
Reduction in restricted cash requirement    710,797
Proceeds from borrowings under bank line of credit agreement 3,896,718   
Repayments of borrowings under bank line of credit agreement (4,108,903)   
Stock options exercised 14,015 14,118
Warrants exercised 29,999   
Net cash provided by (used in) financing activities (174,373) 718,476
Net increase (decrease) in cash and cash equivalents (344,628) 554,397
Cash and cash equivalents at beginning of period 957,022 460,833
Cash and cash equivalents at end of period 612,394 1,015,230
Supplemental cash flow information    
Cash paid for interest 61,319 32,572
Issuance of common stock for reduction in accounts payable balance    499,998
Beneficial conversion feature associated with senior convertible note payable    273,904
Conversion of senior convertible note payable and accrued interest to common stock    $ 229,244