Nerd...
As indicated in your post the numbers are for total expenses. Here is text from the 10Q that clarifies the numbers you posted:
"OPERATING EXPENSES. Our operating expenses consist primarily of payroll and related taxes, professional and consulting services, expenses for executive and administrative personnel and insurance, telephone and communications, facilities expenses, travel and related expenses, and other general corporate expenses. Our operating expenses for the three month period ended September 30, 2009 were $1,546,560 compared to the three month period ended September 30, 2008 which had operating expenses of $766,819 an increase of $779,741 or 101.7%. The increase was primarily due to charges associated with stock and employee stock options issuances."
Nowhere is Research and Development identified, but payroll is a primary expense.
Now you seem to say selling shares would not cover this, but read this from the 10Q:
"Net cash provided by financing activities was $1,468,039 principally from the proceeds of the sale of common stock, as compared to $757,140 for the nine months ended September 30, 2008."
You said "This money did not grow on a tree and they did not hit the lottery". That's true, and they sold common shares.
So, there is no reason to believe there is somebody behind the scenes financing this. They sell shares. It's what they do, no?
