Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended		81 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013
Cash flows from operating activities:
Net loss	$ (12,662,914)	$ (15,414,287)	$ (181,160,752)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of original issue discount	0	0	1,453,000
Amortization of Company options	1,602,703	20,556	4,287,750
Amortization of stock appreciation rights	1,072,366	961,812	4,037,953
Amortization of unearned services	0	0	3,150,000
Amortization of PA LLC interests to employees	116,296	(445)	19,003,153
Amortization of options to acquire PA LLC interests	0	2,410,040	2,498,260
Amortization of deferred loan cost	42,473	0	42,473
Expenses paid and interest added to notes payable - related party	561,837	535,657	13,023,449
Expenses paid by issuance of common stock	0	0	1,214,230
Gain on settlement of accrued liability	0	(433,295)	(433,295)
Depreciation	133,940	262,629	4,018,392
Impairment loss	0	0	651,348
Loss on disposition of equipment	0	0	277,708
Write-off of other non-current assets	0	780,873	2,067,637
Change in operating assets and liabilities:
Decrease (increase) in restricted cash	0	235	(75,089)
Increase in prepaid expenses	(79,512)	(20,651)	(181,027)
Increase in other receivables	(8,555)	0	(8,555)
Increase in other current assets	0	(241,557)	(417,555)
Decrease (increase) in deposits	97,864	(363)	(134,245)
Increase in other non-current assets	0	0	(109,720)
(Decrease) increase in accounts payable	(325,429)	(184,290)	1,167,907
Increase in accrued expenses and related party accrued expenses	4,333,151	3,853,092	20,722,953
Increase in interest payable	514,180	0	514,180
Decrease in deferred revenue	0	(612,500)	0
Increase in deferred rent	0	553	34,000
Net cash used in operating activities	(4,601,600)	(8,081,941)	(104,355,845)
Cash flows from investing activities:
Proceeds from sale of asset	0	0	278,071
Acquisition of property and equipment	(177,542)	(105,712)	(5,855,260)
Net cash used in investing activities	(177,542)	(105,712)	(5,577,189)
Cash flows from financing activities:
Member contributions	0	0	488,532
Reverse merger	0	0	99
Exercise of put option	0	0	(100,000)
Exercise of put option to acquire PA LLC interests	0	0	2,029
Common stock and warrants issued for cash	0	0	27,980,000
Borrowings under note payable - related party	300,000	3,000,000	76,419,601
Borrowings under note payable	15,000,000	0	15,000,000
PA LLC units returned for cash and surrendered technology license	0	0	(600,000)
PA LLC units returned for cash settlement	(360)	(372,970)	(373,330)
Deferred loan cost	(500,000)	0	(500,000)
Issuance of common stock and warrants for cash	0	0	2,000,000
Net cash provided by financing activities	14,799,640	2,627,030	120,316,931
Net increase (decrease) in cash	10,020,498	(5,560,623)	10,383,897
Cash and cash equivalents - beginning of period	363,399	8,842,269	0
Cash and cash equivalents - end of period	10,383,897	3,281,646	10,383,897
Liability incurred for other non-current asset	0	(363,318)	0
Stock and warrants issued for other liabilities, net	0	0	0
Common stock issued for unearned services	0	0	3,150,000
Issuance of shares for other current asset	0	0	1,200,000
Return of common stock for other current asset	0	0	(341,726)
Liability repaid with restricted cash	$ 0	$ 0	$ 4,000,000

Parabel Inc. 10-Q