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 76 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (7,176,996) $ (6,820,705) $ (23,021,276)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation 12,233 10,192 43,874
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 0 710,000
Non cash interest, consisting of common stock and warrants issued in connection with convertible debentures 0 426,152 426,152
Non-cash financing costs related to January and March 2012 financing 0 81,337 81,337
Warrants issued for services rendered 30,172 0 30,172
Stock based compensation 1,275,466 571,330 2,827,337
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 178,258 59,354 (46,401)
Accounts payable 159,972 2,185 985,809
Accrued interest (3,155) (35,195) 3,111
Accrued expenses 542,259 126,074 946,324
Deferred rent payable (4,160) (1,540) 21,996
Net cash used in operating activities (4,985,951) (4,207,624) (15,189,654)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of furniture and fixtures (8,140) (35,673) (86,675)
Payment of restricted cash and interest earned on restricted cash (68) (67) (60,335)
Net cash used in investing activities (8,208) (35,740) (147,010)
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 promissory notes 280,000 0 280,000
Proceeds from exercise of warrants ($8.00 per share) 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)
Proceeds, net of expenses of $1,351,987, $374,870, and $1,726,857, from sale of units consisting of common stock and warrants, respectively 10,042,033 4,387,894 16,974,927
Proceeds from the sale of capital stock 0 0 1,954,001
Net cash provided by financing activities 10,628,699 4,237,894 22,756,594
Net increase (decrease) increase in cash 5,634,540 (5,470) 7,419,930
Cash, beginning of the period 1,785,390 41,123 0
Cash, end of period 7,419,930 35,653 7,419,930
Supplemental disclosures of cash flow information:      
Interest paid 3,115 35,195 38,310
Non cash investing and 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