Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash Flows from Operating Activities    
Net loss $ (4,724,942) $ (5,017,531)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 425,771 2,392,139
Net realized and unrealized investment losses 11,324 20,382
Depreciation and amortization 219,211 376,718
Provision for uncollectable assets (57,270) (591,046)
Prepaid compensation amortization (7,119) (7,214)
Unrealized exchange rate loss on liabilities denominated in foreign currency 180,866 37,519
Loss on extinguishment of convertible debt 219,421 195,747
Other non-cash income 0 (14,900)
Decrease (increase) in assets:    
Accounts receivable 3,579 (116,414)
Inventory (178,162) (240)
Prepaid expenses and other current assets (88,707) (64,040)
Increase (decrease) in liabilities:    
Accounts payable and accrued expenses 773,566 491,144
Deferred revenue (5,899) 122,550
Other current liabilities (2,899) (671)
Total Adjustments 1,493,682 2,841,674
Net Cash Used in Operating Activities (3,231,260) (2,175,857)
Cash Used in Investing Activities    
Purchase of property and equipment (488,869) (111,294)
Net Cash Used in Investing Activities (488,869) (111,294)
Cash Provided by Financing Activities    
Proceeds from exercise of common stock options 49,959 0
Proceeds from issuance of loans payable 200,000 716,229
Repayments of loans payable (326,218) (35,000)
Repayments of convertible debt obligations (656,848) (34,500)
Proceeds from preferred stock offering prior to closing 780,476 553,000
Proceeds from issuance of preferred stock 4,110,877 868,000
Net Cash Provided by Financing Activities 4,158,246 2,067,729
Effect of Exchange Rate Changes on Cash 318,687 234,822
Net Increase in Cash 756,804 15,400
Cash - Beginning of Period 207,418 114,763
Cash - End of Period 964,222 130,163
Supplemental Disclosures of Cash Flow Information:    
Interest paid 421,590 23,181
Income taxes paid 33,848 28,117
Non-Cash Investing and Financing Activity    
Accrued stock based compensation converted to equity 48,272 78,127
Common stock converted into preferred stock and retired 0 249,998
Debt and interest converted to equity 874,082 746,834
Debt and interest converted to deposits for the purchase of Series A convertible preferred stock 641,524 0
Issuance of preferred stock previously subscribed 789,800 223,050
Common stock issued to settle operational expenses $ 136,091 $ 0