Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.4.0.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,950,391) $ (2,047,455)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 6,198 6,919
Accretion of interest and amortization of debt discount 839,234 $ 425,226
Gain on settlement of debt (5,044)
Stock-based compensation expense 101,462 $ 54,890
Amortization of third party fees paid in common stock and warrants 105,200 46,744
Change in fair value of derivative liabilities 4,068,390 530,138
Changes in operating assets and liabilities:    
Accounts receivable (280,655) (51,391)
Inventories 71,822 51,557
Prepaid expenses and other assets 43,303 (22,836)
Accounts payable (161,253) (115,670)
Accrued employee compensation 38,110 (16)
Deferred revenue and other accrued expenses (109,834) 71,412
Net cash used in operating activities $ (1,233,458) $ (1,050,482)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party convertible debt $ 96,667 $ 6,300
Payment of related party debt (12,300)
Net proceeds from convertible debt $ 1,025,500 1,054,750
Payments on convertible debt (500,500)
Net proceeds from non-convertible debt $ 256,660 396,127
Payments on non-convertible debt (168,765) (147,533)
Net cash provided by financing activities 1,210,062 796,844
NET DECREASE IN CASH (23,396) (253,638)
CASH AT BEGINNING OF YEAR 116,783 473,948
CASH AT END OF PERIOD 93,387 220,310
SUPPLEMENTAL INFORMATION    
Interest paid in cash $ 1,154 $ 203,311
Income taxes paid in cash
NON CASH TRANSACTIONS:    
Convertible debt exchanged for common stock $ 138,000
Reclassification of conversion option liabilities into equity 661,464
Accrued dividends on preferred stock $ 16,668
Unrealized loss from available-for-sale equity securities $ 139,698
Debt discount from derivative liability 1,294,049
Convertible debt held in escrow $ 166,882