Annual report pursuant to section 13 and 15(d)

Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows (USD $)	12 Months Ended
Consolidated Statements of Cash Flows (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Series B Convertible Preferred Stock	Dec. 31, 2012 Series C Convertible Preferred Stock	Dec. 31, 2012 Series D Convertible Preferred Stock	Dec. 31, 2013 Series E Convertible Redeemable Preferred Stock	Dec. 31, 2013 Series F Convertible Redeemable Preferred Stock	Dec. 31, 2013 Common Stock	Dec. 31, 2012 Common Stock	Dec. 31, 2013 Series D Preferred Stock	Dec. 31, 2012 Series D Preferred Stock	Dec. 31, 2012 Convertible Promissory Notes	Dec. 31, 2013 Relume Technologies Inc	Dec. 31, 2013 Seesmart Technologies Incorporated	Dec. 31, 2012 Seesmart Technologies Incorporated	Dec. 31, 2013 Elite LED Solutions Incorporated	Dec. 31, 2013 Tri-State LED, Inc.
Cash Flows from Operating Activities:
Net loss	$ (16,821,000)	$ (8,578,000)	$ (5,469,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	263,000	228,000	466,000
Amortization of intangible assets	2,859,000	266,000	288,000
Amortization of debt discount and debt issuance costs		69,000	89,000
Amortization of deferred rent		(26,000)	(80,000)
Gain on bargain purchase of business	(743,000)
Loss on sale of businesses			52,000
Impairment charges		3,397,000	407,000
Gain on debt restructuring		(1,048,000)
Interest expense forgiven on debt restructuring		141,000
Loss on disposal of property and equipment		6,000	3,000
Stock-based compensation	809,000	45,000	301,000
Change in fair value of embedded derivative and contingent consideration	7,078,000
Loss due to closure of contract manufacturer			111,000
Changes in operating assets and liabilities, net of the effect of the acquisitions (Note 2):
(Increase) decrease in trade accounts receivable, net	(1,727,000)	306,000	81,000
(Increase) decrease in inventories	(697,000)	1,753,000	526,000
(Increase) decrease in other assets	(385,000)	(170,000)	62,000
Increase (decrease) in accounts payable, accrued liabilities and related party payable	1,172,000	(1,364,000)	(199,000)
Increase (decrease) in accrued compensation and benefits	381,000	(69,000)	(7,000)
Decrease in customer deposits	(1,338,000)	(69,000)
Increase (decrease) in deferred revenue	1,003,000	(17,000)
Total adjustments	8,675,000	3,448,000	2,100,000
Net cash used in operating activities	(8,146,000)	(5,130,000)	(3,369,000)
Cash Flows from Investing Activities:
Acquisition, net of cash acquired														(4,249,000)	(3,852,000)	(7,591,000)	(500,000)	(1,836,000)
Patents, trademarks and other intangible assets costs		(83,000)	(139,000)
Purchase of property and equipment	(136,000)	(20,000)	(224,000)
Proceeds from sale of property and equipment	3,000	8,000	7,000
Proceeds from sale of businesses, net of transaction costs			1,111,000
Net cash (used in) provided by investing activities	(10,570,000)	(7,686,000)	755,000
Cash Flows from Financing Activities:
Payment to extinguish convertible promissory notes		(880,000)
Proceeds from issuance of convertible preferred stock, net of issuance costs				5,195,000	9,936,000	(6,000)	4,968,000	4,999,000
Costs related to issuance of common stock	(119,000)	(10,000)
Proceeds from issuance of common stock	5,069,000
Proceeds from short-term borrowings	860,000
Net proceeds from exercise of employee stock options and warrants	265,000		320,000
Net cash provided by financing activities	16,039,000	14,235,000	320,000
Net increase (decrease) in cash and cash equivalents	(2,677,000)	1,419,000	(2,294,000)
Cash and cash equivalents, beginning of period	4,434,000	3,015,000	5,309,000
Cash and cash equivalents, end of period	1,757,000	4,434,000	3,015,000
Supplemental Disclosure of Cash Flow Information:
Cash paid during period for interest	21,000		24,000
Non-cash investing and financing activities:
Issuance of stock									9,435,000	4,295,000	62,000	950,000	588,000
Conversion of Series D preferred stock											1,006,000
Accrual of dividends on preferred stock	$ 1,360,000