Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 9 Months Ended 64 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (6,820,705) $ (1,883,944) $ (13,215,385)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 10,192 6,946 27,504
Amortization and write down of deferred financing costs 196,166 0 249,543
Non cash interest, consisting of common stock and warrants issued in connection with convertible debentures 426,152 0 426,152
Non-cash financing costs related to January and March 2012 financing 81,337 0 81,337
Stock based compensation 571,330 139,064 1,258,043
Loss in change in fair value of warrant liability 1,177,026 0 1,177,026
Common stock issued in exchange for intellectual property 0 0 383,250
Gain on extinguishment of debt 0 0 (7,908)
Changes in operating assets and liabilities:      
Prepaid expenses 59,354 20,539 (43,076)
Accounts payable 2,185 539,571 697,383
Accrued interest (35,195) 0 3,111
Accrued expenses 126,074 (3,472) 237,014
Deferred rent payable (1,540) 10,423 27,543
Net cash used in operating activities (4,207,624) (1,170,873) (8,698,463)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of furniture and fixtures (35,673) (2,764) (78,535)
Proceeds from security deposit 0 3,156 0
Payment of restricted cash and interest earned on restricted cash (67) (45) (60,244)
Net cash (used in) provided by investing activities (35,740) 347 (138,779)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from demand notes 0 0 480,000
Proceeds from other notes payable 0 0 700,000
Proceeds, net of expenses of $24,000 from Convertible Debentures 0 500,000 1,501,000
Repayment of Convertible Debentures (150,000) 0 (150,000)
Proceeds, net of expenses of $304,870, from sale of units consisting of common stock and warrants 4,387,894 0 4,387,894
Proceeds from the sale of capital stock 0 612,000 1,954,001
Net cash provided by financing activities 4,237,894 1,112,000 8,872,895
Net (decrease) increase in cash (5,470) (58,526) 35,653
Cash, beginning of the period 41,123 65,359 0
Cash, end of period 35,653 6,833 35,653
Supplemental disclosures of cash flow information:      
Interest paid 35,195 0 0
Non cash investing and financing activities:      
Senior convertible notes exchanged for preferred shares 0 0 200,000
Capital contribution of accrued interest 0 0 23,725
Demand notes together with accrued interest converted into capital stock 0 0 549,078
Common stock issued for deferred financing costs 0 0 144,000
Exchange of Notes Payable for Convertible Debenture 0 0 500,000
Warrants Liability reclassified to Stockholders' Equity 3,938,946 0 3,938,946
Exchange of Convertible Debenture for Units consisting of common stock and warrants $ 1,925,000 $ 0 $ 1,925,000