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 $)
 6 Months Ended 73 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (4,086,864) $ (5,088,678) $ (19,931,144)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 8,080 6,116 39,721
Amortization and write off of deferred financing costs 0 196,166 249,543
Non-cash interest, consisting of beneficial conversion feature in connection with convertible debentures 0 426,152 710,000
Non-cash interest, consisting of common stock and warrants issued in connection with convertible debentures 0 81,337 426,152
Non-cash financing costs related to January and March 2012 financing 0 0 81,337
Warrants issued for services rendered 24,073 0 24,073
Stock based compensation 833,895 228,532 2,385,766
Change in fair value of warrant liability 0 1,177,026 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 178,297 27,889 (46,362)
Accounts payable 635,401 (208,260) 1,461,238
Accrued interest (3,155) (35,195) 3,111
Accrued expenses 289,989 282,515 694,055
Deferred rent payable (2,774) (1,027) 23,381
Net cash used in operating activities (2,123,058) (2,907,427) (12,326,761)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of furniture and fixtures 0 (33,814) (78,535)
Proceeds From Security Deposit 0 0 0
Payment of restricted cash and interest earned on restricted cash (45) (45) (60,312)
Net cash used in investing activities (45) (33,859) (138,847)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from demand notes 0 0 480,000
Proceeds from other notes payable 0 0 1,020,000
Proceeds from related party advances 200,000 0 200,000
Proceeds from exercise of warrants 306,666 0 306,666
Proceeds, net of expenses of $24,000 from Convertible Debentures 0 0 1,891,000
Repayment of Convertible Debentures 0 (150,000) (150,000)
Deferred offering costs (100,916) 0 (100,916)
Proceeds, net of expenses of $374,870, from sale of units consisting of common stock and warrants 0 4,387,894 6,932,894
Proceeds from the sale of capital stock 0 0 1,954,001
Net cash provided by financing activities 405,750 4,237,894 12,533,645
Net increase (decrease) increase in cash (1,717,353) 1,296,608 68,037
Cash, beginning of the period 1,785,390 41,123 0
Cash, end of period 68,037 1,337,731 68,037
Supplemental disclosures of cash flow information:      
Interest paid 3,115 35,195 38,310
Non-cash financing activities:      
Senior convertible notes exchanged for preferred shares 0 0 200,000
Capital contribution of accrued interest 0 0 26,836
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 0 820,000
Warrants Liability reclassified to Stockholders' Equity 0 3,938,946 3,938,946
Exchange of Convertible Debenture for Units consisting of common stock and warrants 0 1,925,000 2,635,000
Deferred financing costs capitalized $ 100,916 $ 0 $ 100,916