Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Consolidated Statements of Cash Flows (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash Flows From Operating Activities
Net income (loss )	$ (24,507,386)	$ (6,471,483)
Adjustments to reconcile net loss by cash used in operating activities:
Depreciation	908,077	1,381,474
Loss (gain) an sale of assets	39,346	(419)
Stock based compensation expense	31,221	160,727
Issuance of stock for licensing rights		1,650,000
Debt extinguishment loss	21,735,133
Gain on fair value of debt instruments	(981,517)
Derivative income	(2,050,936)
Amortization of debt discount	469,995	293,705
Amortization of debt issuance cost		1,875
(Increase) decrease in:
Restricted cash	1,345,442
Receivables	(2,488)	(43,109)
Inventories	146,317	(40,125)
Prepaid expenses and other assets	99,068	9,274
Increase (decrease) in:
Accounts payable and payables to related parties	984,625	(42,165)
Billings in excess of costs and estimated earnings on uncompleted contracts	196,594
Deferred income	(1,742,178)	1,537,900
Accrued payroll and other liabilities	(142,698)	(367,943)
Net Cash Provided by (Used In) Operating Activities	(3,471,385)	(1,930,289)
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(1,556,498)	(234,363)
Proceeds from the sale of fixed assets	26,426	600
Net Cash Provided by (Used in) Investing Activities	(1,530,072)	(233,763)
Cash Flows From Financing Activities
Proceeds (payments) from long-term debt	(185,936)	(332,348)
Payments on subordinated debt - related parties, net	(80,000)	(93,538)
Payments on long-term debt principal
Proceeds from convertible debt	2,950,000	1,500,000
Debt issuance costs		(75,000)
Interest payments on convertible debt	(219,907)
Legal, professional and placement fees		(335,000)
Proceeds from issuance of common stock		3,350,000
Net Cash Provided by (Used in) Financing Activities	2,464,157	4,014,114
Net Increase (Decrease) in Cash and Cash Equivalents	(2,537,300)	1,850,062
Cash and cash equivalents at beginning of period	3,507,676	65,049
Cash and cash equivalents at end of period	970,376	1,915,111
Supplemental Disclosures of Cash Flow Information
Interest paid	54,610	85,803
Insurance premium financed with debt	116,000	80,000
Debt discount		1,495,000
Replacement Convertible Notes
Supplemental Disclosures of Cash Flow Information
Beneficial conversion feature of convertible notes	6,243,582
New Convertible Notes
Supplemental Disclosures of Cash Flow Information
Beneficial conversion feature of convertible notes	2,750,000
Promissory Notes
Supplemental Disclosures of Cash Flow Information
Debt extinguishment	4,189,037
Warrant
Supplemental Disclosures of Cash Flow Information
Debt extinguishment	$ 5,041,339

KL Energy Corp 10-Q