Quarterly report pursuant to sections 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 3 Months Ended 96 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2014
Cash flows from operating activities:      
Net loss $ (11,284,929) $ (594,292) $ (44,182,586)
Adjustments to reconcile net income to net cash used in operating activities:      
Depreciation and amortization 7,505 8,242 1,430,731
Stock based compensation 9,104,625 3,615 10,704,092
Discount amortization 4,592 32,144 1,653,044
Net loss on sale of assets       (28,648)
Loss on abandonment of patents       57,847
Changes in assets and liabilities:      
Deposits and other assets 2,356 29,823 (91,864)
Prepaid expenses (46,884) 5,024 (46,379)
Inventory       (986,674)
Accrued payroll and payroll related expenses (266,854) 243,727 3,383,917
Accounts payable (97,449) (21,783) 584,870
Accrued interest (101,553) 117,199 1,022,977
Fees payable to directors (43,750) (9,262) 424,796
Patent license payable    (5,833) 20,000
Other current liabilities (12,613) (4,420)   
Employee settlement       50,000
Net cash used in operating activities (2,734,954) (195,816) (26,003,877)
Cash flows from investing activities:      
Purchases of property and equipment       (976,850)
Proceeds from sale of property and equipment       112,759
Expenditures on patents (1,292) (10,464) (652,259)
Net cash used in investing activities (1,292) (10,464) (1,516,350)
Cash flows from financing activities:      
Proceeds from the issuance of common stock 3,923,100    5,504,375
Proceeds from the issuance of series A preferred stock       6,714,860
Proceeds from the issuance of series B preferred stock       7,259,402
Proceeds from the exercise of stock options       2,663
Proceeds from the issuances of notes payable 2,076,000 304,721 15,792,167
Repayment of principal on notes payable (550,408)    (4,818,384)
Net cash provided by financing activities 5,448,692 304,721 30,455,083
NET INCREASE IN CASH 2,712,446 98,441 2,934,856
Cash at the beginning of the period 222,410 7,799   
Cash at the end of the period 2,934,856 106,240 2,934,856
NON-CASH FINANCING AND INVESTING ACTIVITIES:      
Issuance of stock for property and equipment       388,165
Issuance of stock for deposits and other assets       14,885
Conversion of convertible notes payable to common stock       743,990
Issuance of common stock warrants    358,003 1,653,044
Conversion of notes payable to common stock 11,125,167    11,125,167
SUPPLEMENTAL DISCLOSURES:      
Cash paid for interest $ 188,382    $ 227,768