Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (4,988,561) $ (2,772,232)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 12,325 12,187
Accretion of interest and amortization of debt discount 1,831,289 1,047,864
Gain on settlement of debt (5,044)
Stock-based compensation expense 192,311 110,506
Amortization of third party fees paid in common stock and warrants 312,200 167,936
Gain on extinguishment of embedded derivative liabilities (848,073)
Change in fair value of derivative liabilities 1,035,628 (398,411)
Changes in operating assets and liabilities:    
Accounts receivable (397,852) (77,936)
Inventories 35,989 66,661
Prepaid expenses and other assets 68,966 16,723
Accounts payable (51,526) (56,302)
Accrued employee compensation 20,771 (4,078)
Deferred revenue and other accrued expenses 65,448 87,548
Net cash used in operating activities (1,868,056) (1,850,785)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (245) (6,662)
Net cash used in investing activities (245) (6,662)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party convertible debt 96,667 6,300
Payments on related party debt (12,300)
Net proceeds from convertible debt 1,417,382 1,609,437
Payments on convertible debt (667,450)
Net proceeds from non-convertible debt 623,311 992,128
Payments on non-convertible debt (314,210) (333,641)
Payment of prepayment penalty (172,800)
Net cash provided by financing activities 1,823,150 1,421,674
NET DECREASE IN CASH (45,151) (435,773)
CASH AT BEGINNING OF YEAR 116,783 473,948
CASH AT END OF PERIOD 71,632 38,175
SUPPLEMENTAL INFORMATION    
Interest paid in cash 1,154 203,311
Income taxes paid in cash
NON CASH TRANSACTIONS:    
Convertible debt exchanged for common stock 117,837 248,000
Cashless exercise of warrants 11,100
Discount due to beneficial conversion feature 7,962
Discount due to warrants issued with debt 39,755
Common stock issued with debt 10,952
Extension fees added to principal 54,000
Conversion of preferred stock into common stock 63,459
Accrued dividends on preferred stock 23,479
Unrealized loss from available-for-sale equity securities 212,739
Debt discount from derivative liability 1,304,049 1,555,739
Prepayment penalty and accrued interest enrolled into debt principal $ 48,950