|
Condensed Statements of Cash Flows (unaudited) (USD $)
|
9 Months Ended |
|
Sep. 30, 2014
|
Sep. 30, 2013
|
| OPERATING ACTIVITIES |
|
|
| Net loss |
$ (1,419,671) |
$ (3,713,687) |
| Adjustments to reconcile net loss to net cash used by operating activities: |
|
|
| Amortization and depreciation expense |
24,553 |
14,296 |
| Amortization of premium on investments |
17,248 |
27,541 |
| Options and warrants granted |
267,567 |
200,141 |
| Change in fair value of derivative liability |
|
2,625,978 |
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
(35,222) |
77,367 |
| Accounts receivable-related parties |
23,906 |
16,069 |
| Deposits |
(33,609) |
271,178 |
| Prepaid Expense |
17,277 |
(15,502) |
| Inventory |
(225,845) |
(1,098,278) |
| Accounts payable and accrued expenses |
54,881 |
(212,036) |
| Customer deposits |
53,195 |
1,168 |
| Accounts payable-related parties |
854 |
(2,208) |
| Accrued management compensation |
(70,519) |
(49,270) |
| Net Cash Used in Operating Activities |
(1,325,385) |
(1,857,243) |
| INVESTING ACTIVITIES |
|
|
| Maturity of short-term investments |
900,000 |
150,000 |
| Purchase of property and equipment |
(1,459) |
(111,677) |
| Net Cash Provided by Investing Activities |
898,541 |
38,323 |
| FINANCING ACTIVITIES |
|
|
| Exercise of warrants and options for cash |
13,600 |
|
| Net Cash Provided by Financing Activities |
13,600 |
|
| NET DECREASE IN CASH |
(413,244) |
(1,818,920) |
| CASH AT BEGINNING OF YEAR |
1,057,836 |
3,192,761 |
| CASH AT END OF PERIOD |
644,592 |
1,373,841 |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOWS |
|
|
| CASH PAID FOR Interest |
|
|
| CASH PAID FOR Income taxes |
$ 800 |
$ 800 |