Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,585,000) $ (1,700,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of intangible assets 14,000 14,000
Stock compensation expense for options and warrants issued to employees and non-employees 60,000 555,000
Issuance of shares for services 1,597,000 0
Amortization of debt discounts 252,000 218,000
Change in value of warrant and derivative liabilities (102,000) 0
Changes in operating assets and liabilities:    
Prepaid expense and other current assets (22,000) (39,000)
Accounts payable and accrued expenses 246,000 184,000
Net cash used in operating activities (540,000) (768,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from the exercise of options and warrants 4,000 46,000
Proceeds from notes payable 621,000 0
Repayment of notes payable (50,000) 0
Net cash provided by financing activities 575,000 46,000
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 35,000 (722,000)
CASH AND CASH EQUIVALENTS - Beginning of period 54,000 1,293,000
CASH AND CASH EQUIVALENTS - End of period $ 89,000 $ 571,000