Quarterly report pursuant to sections 13 or 15(d)

Condensed Consolidated Interim Statements of Cash Flows (Unaudited)

v2.4.0.8
Condensed Consolidated Interim Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net income (loss) $ 89,493 $ (2,020,571)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,722,499 192,177
Loss on sale of accounts receivable 128,769 168,814
Bad debt (recovery) expense 1,251 63,273
Stock-based compensation 55,931 61,482
Stock and warrants issued for services rendered 83,564 0
Amortization of debt discount and deferred financing fees 209,011 0
Change in fair value of derivative liability (105,267) 0
Loss on extinguishment of debt 150,579 0
Gain on extinguishment of accounts payable (2,908,882) 0
Increase (decrease) in cash attributable to changes in operating assets and liabilities:    
Accounts receivable (992,929) 528,647
Inventory (92,776) 0
Prepaid expenses and other current assets (75,670) (1,247)
Other assets 25,894 (1,408)
Replenishment of security deposit (144,141) 0
Accounts payable and accrued expenses 1,271,099 (257,245)
Other long-term liabilities (67,645) (52,511)
Net cash used in operating activities (649,220) (1,318,589)
Cash flows from investing activities:    
Purchase of property and equipment (535,831) (77,303)
Increase in restricted cash (197) (3,145)
Net cash used in investing activities (536,028) (80,448)
Cash flows from financing activities:    
Proceeds from the sale of common stock and warrants, net 1,559,509 1,142,720
Proceeds from notes payable - related parties 100,000 161,000
Proceeds from notes payable - non-related parties 212,500 300,000
Payments on equipment financing obligations (5,352) 0
Proceeds from the sale of equity securities not yet issued 0 775,000
Repayments of notes payable - related parties (257,143) (60,000)
Repayments of notes payable - non-related parties (180,577) (123,073)
Net cash provided by financing activities 1,428,937 2,195,647
Net (decrease) increase in cash and cash equivalents from continuing operations 243,689 796,610
Cash flows from discontinued operations:    
Net cash used in operating activities of discontinued operations 0 (1,490)
Net change in cash and cash equivalents 243,689 795,120
Cash and cash equivalents, beginning of period 543,214 3,047
Cash and cash equivalents, end of period $ 786,903 $ 798,167