Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net loss $ (15,186,393) $ (2,849,861)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 28,196 25,160
Stock based compensation 10,783,948 8,508
Amortization of debt discount 4,592 55,843
Gain on sale of assets (2,426)   
Changes in assets and liabilities:    
Deposits and other assets 1,989 (53,922)
Prepaid expenses (50,194) (10,387)
Inventory 28,099   
Accrued payroll and payroll related expenses (198,989) 68,892
Accounts payable (153,510) (134,399)
Accrued interest (101,553) 227,865
Fees payable to directors (50,000) (57,372)
Patent license payable (10,000) (833)
Other current liabilities (12,613) 15,702
Lease settlement payable    (251,184)
Net cash used in operating activities (4,918,854) (2,955,988)
Cash flows from investing activities:    
Purchases of property and equipment (1,634) (30,259)
Proceeds from sale of property and equipment 2,426   
Expenses related to patent development (20,419) (22,563)
Net cash used in investing activities (19,627) (52,822)
Cash flows from financing activities:    
Proceeds from the issuance of common stock 3,923,798   
Proceeds from the issuances of notes payable 2,076,000 5,360,403
Repayment of principal on notes payable (550,408) (1,148,076)
Net cash provided by financing activities 5,449,390 4,212,327
NET INCREASE IN CASH 510,909 1,203,517
Cash at the beginning of the year 222,410 7,799
Cash at the end of the period 733,319 1,211,316
NON-CASH FINANCING AND INVESTING ACTIVITIES:    
Issuance of common stock warrants    140,592
Conversion of notes payable and accrued interest into common stock 11,125,167   
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 188,382 24,743
Cash paid for income taxes