Quarterly report pursuant to sections 13 or 15(d)

Condensed Statements of Cash Flows (Unaudited)

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Condensed Statements of Cash Flows (Unaudited) (USD $)
 3 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Cash flows from operating activities:    
Net loss $ (3,474,389) $ (2,250,618)
Adjustments to reconcile net loss to net cash flows from operating activities:    
Depreciation and license amortization 98,633 70,963
Share-based compensation 229,855 254,743
Amortization and write-off of debt issuance costs and original issue discounts (see Note 8) 2,058,746 320,314
Increase (decrease) in cash resulting from changes in:    
Accounts receivable 242,950 (8,024)
Inventory (20,596) (85,272)
Prepaid expenses and other current assets (37,155) 15,863
Other assets 1,101  
Accounts payable and accrued expenses (333,165) 763,579
Related party deferred revenue (650,000) (650,000)
Net cash flows from operating activities (1,884,020) (1,568,452)
Cash flows from investing activities:    
Purchases of property and equipment (4,521)  
Net cash flows from investing activities (4,521)  
Cash flows from financing activities:    
Proceeds from issuance of convertible notes payable, net of issuance costs 3,424,950  
Net cash flows from financing activities 3,424,950  
Net change in cash and cash equivalents 1,536,409 [1] (1,568,452) [1]
Cash and cash equivalents, beginning of period 145,478 1,577,314
Cash and cash equivalents, end of period 1,681,887 8,862
Cash paid for:    
Income taxes    
Interest    
[1] NON-CASH TRANSACTIONS: In February 2012, the terms of related party notes payable were modified (see Note 6) and accrued interest of $838,601 was added to the principal balances of the original notes. Upon the effectiveness of the Company's Form 10 registration statement in February 2012, the principal balance of convertible notes payable totaling $10,811,500 and the related accrued interest of $974,311 were converted into shares of the Company's common stock (see Note 7). In addition, unamortized debt discounts totaling $405,602 at the conversion date related to the relative fair value of warrants issued in connection with the issuance of the convertible notes (originally accounted for as equity) were offset against additional paid-in capital. In February 2012, warrants with a fair value of $237,299 (recorded as deferred financing costs and additional paid-in capital) were issued to the placement agent and its sub-placement agents in connection with the Company's sale of units consisting of secured convertible notes and common stock warrants (see Note 7). In January and February 2012, both the $383,204 relative fair value of warrants and the $383,204 intrinsic value of the beneficial conversion feature associated with notes issued by the Company in an offering of units (see Note 7) were recorded as additional paid-in capital and a discount to the convertible notes payable. ClearPoint reusable components with costs of $29,626 were transferred from inventory to loaned systems, which is a component of property and equipment, during the three months ended March 31, 2012.