Cash Flow

v3.6.0.2
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,706,984) $ (7,415,298)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 17,939 25,288
Provision for bad debts 28,169
Accretion of interest and amortization of debt discount 4,003,485 2,989,765
Penalty interest added to debt principal 41,200
Gain on settlement of debt (5,044)
Stock-based compensation expense 379,964 208,989
Warrant expense 84,735 163,115
Amortization of third party fees paid in common stock 332,696 457,030
Impairment loss on investment 373,682
Gain on extinguishment of embedded derivative liabilities (2,555,180)
Change in fair value of derivative liabilities (5,904,649) 2,222,001
Changes in operating assets and liabilities:    
Accounts receivable (196,233) 158,766
Inventories 133,087 (187,820)
Prepaid expenses and other assets (44,201) (15,722)
Accounts payable (534,140) (94,392)
Accrued employee compensation 73,587 18,662
Deferred revenue and other accrued expenses 116,856 205,050
Net cash used in operating activities (3,805,851) (3,819,746)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (7,203) (9,412)
Net cash used in investing activities (7,203) (9,412)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party debt 116,667 6,300
Payment of related party debt (20,000) (12,300)
Net proceeds from revolving note payable 1,133,500
Net proceeds from convertible debt 2,105,420 5,558,537
Payments on convertible debt (107,000) (2,653,990)
Net proceeds from non-convertible debt 1,022,784 1,257,418
Payments on non-convertible debt (947,702) (587,949)
Net proceeds from the issuance of common stock 530,965
Payment of accrued prepayment penalty (96,023)
Net cash provided by financing activities 3,834,634 3,471,993
NET INCREASE (DECREASE) IN CASH 21,580 (357,165)
CASH AT BEGINNING OF YEAR 116,783 473,948
CASH AT END OF PERIOD 138,363 116,783
SUPPLEMENTAL INFORMATION    
Interest paid in cash 260,979 1,072,900
Income taxes paid in cash
NON CASH TRANSACTIONS:    
Shares issued for conversion of debt and interest 117,837 396,919
Cashless exercise of warrants 11,100  
Discount due to beneficial conversion feature 20,721
Discount due to warrants issued with debt 519,485
Common stock issued with debt 104,731
Common stock issued to settle non-convertible debt 41,200
Conversion of preferred stock and accrued dividends into common stock 63,902
Accrued dividends on preferred stock 23,194
Issuance of common stock for investment in available-for-sale equity securities 399,547
Unrealized loss from available-for-sale equity securities 105,025
Debt discount from derivative liability 1,304,049 6,819,730
Debt discount related to accrual of one-time interest 170,000
Extension fees added to principal 84,000
Prepayment penalty and accrued interest enrolled into debt principal 48,950
Reversal of accumulated other comprehensive income to impairment loss on investment $ 105,025

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