Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.3.0.814
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,430,160) $ (3,321,892)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 18,279 59,364
Accretion of interest and amortization of debt discount and deferred financing fees 2,367,381 $ 611,919
Debt conversion option value in excess of debt 476,442
Stock-based compensation expense 185,370 $ 46,770
Amortization of third party fees paid in common stock and warrants 173,538 $ 206,226
Gain on extinguishment of embedded derivative liabilities (2,028,324)
Change in fair value of derivative liabilities (515,410) $ 156,779
Changes in operating assets and liabilities:    
Accounts receivable (90,800) (187,406)
Inventories 41,709 (115,847)
Prepaid expenses and other assets 123,808 222,041
Accounts payable (200,969) (16,976)
Accrued employee compensation 48,606 13,826
Deferred revenue and other accrued expenses 150,581 122,463
Net cash used in operating activities (2,679,949) (2,202,713)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (6,662) (7,139)
Net cash used in investing activities (6,662) $ (7,139)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party debt 6,300
Payment of related party debt (12,300) $ (6,394)
Net proceeds from convertible debt 3,991,437 957,744
Payments on convertible debt (2,107,065) (303,100)
Net proceeds from non-convertible debt 1,300,000 270,252
Payments on non-convertible debt (537,641) $ (267,377)
Payment of prepayment penalty $ (351,193)
Net proceeds from the issuance of common stock $ 149,166
Net proceeds from the issuance of convertible preferred stock 1,476,360
Net cash provided by financing activities $ 2,289,538 2,276,651
NET DECREASE IN CASH (397,073) 66,799
CASH AT BEGINNING OF YEAR 473,948 31,417
CASH AT END OF PERIOD 76,875 98,216
SUPPLEMENTAL INFORMATION    
Interest paid in cash $ 239,389 $ 33,445
Income taxes paid in cash
NON CASH TRANSACTIONS:    
Convertible debt exchanged for convertible preferred stock $ 270,000
Accrued dividends on preferred stock $ 21,768 97,955
Issuance of convertible preferred stock for interest 30,000
Issuance of convertible preferred stock for board of director and other fees $ 92,750
Issuance of common stock for investment in available-for-sale equity securities $ 399,547
Unrealized loss from available-for-sale equity securities $ 76,687
Deemed dividend on convertible preferred stock $ 1,388,062
Convertible debt and extension fee exchanged for common stock $ 338,000 $ 87,500
Debt discount from derivative liability 5,085,536
Extension fees added to principal 84,000
Prepayment penalty and accrued interest enrolled into debt principal $ 48,950
Common stock issued for preferred dividends $ 82,231