Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.3.1.900
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (7,415,298) $ (4,612,540)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 25,288 65,714
Accretion of interest and amortization of debt discount 2,989,765 1,310,351
Stock-based compensation expense 208,989 $ 101,125
Warrant expense 163,115
Amortization of third party fees paid in common stock $ 457,030 $ 307,013
Amortization of board of director fees paid in preferred stock $ 84,750
Gain on extinguishment of embedded derivative liabilities $ (2,555,180)
Change in fair value of derivative liabilities 2,222,001 $ (198,493)
Changes in operating assets and liabilities:    
Accounts receivable 158,766 (124,387)
Inventories (187,820) (113,876)
Prepaid expenses and other assets (15,722) (18,631)
Accounts payable (94,392) (66,991)
Accrued employee compensation 18,662 8,014
Deferred revenue and other accrued expenses 205,050 47,373
Net cash used in operating activities (3,819,746) (3,210,578)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (9,412) (7,139)
Net cash used in investing activities (9,412) $ (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 5,558,537 1,126,744
Payments on convertible debt (2,653,990) (303,100)
Net proceeds from non-convertible debt 1,257,418 302,252
Payments on non-convertible debt (587,949) $ (410,297)
Payment of accrued prepayment penalty $ (96,023)
Net proceeds from the exercise of common stock warrants $ 149,165
Net proceeds from warrant reset transaction 862,518
Net proceeds from the issuance of convertible preferred stock 1,939,360
Net cash provided by financing activities $ 3,471,993 3,660,248
NET DECREASE IN CASH (357,165) 442,531
CASH AT BEGINNING OF YEAR 473,948 31,417
CASH AT END OF PERIOD 116,783 473,948
SUPPLEMENTAL INFORMATION    
Interest paid in cash $ 1,072,900 $ 14,832
Income taxes paid in cash
NON CASH TRANSACTIONS:    
Shares issued for conversion of debt and interest $ 396,919 $ 136,500
Common stock issued for preferred dividends 82,916
Convertible debt exchanged for convertible preferred stock 300,000
Incremental value from warrant modifications 163,654
Fair value of common stock issued for services 214,192
Issuance of convertible preferred stock for board fees 84,750
Beneficial conversion feature on convertible preferred stock 1,495,415
Dividends earned on convertible preferred stock $ 143,771
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 6,819,730
Extension fees added to principal 84,000
Prepayment penalty and accrued interest enrolled into debt principal $ 48,950