Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (7,889,676) $ (5,933,768)
Adjustments to reconcile net loss to net cash used in operating activities:    
Common stock issued for debt extension 10,000
Depreciation and amortization 7,027 15,489
Accretion of interest and amortization of debt discount 3,548,244 2,848,058
Incentive warrants for warrant exercises 186,802
Penalty interest added to debt principal 41,200
Gain on extinguishment of debt 90,862
Stock-based compensation expense 318,910 282,811
Amortization of third party fees paid in common stock and warrants 332,700
Warrants issued for service 15,558
Shares issued for service 31,000
Impairment loss on investment 6,069
Change in fair value of derivative liabilities 26,014 412,500
Changes in operating assets and liabilities:    
Accounts receivable (266,996) (476,426)
Inventories (217,498) 30,233
Prepaid expenses and other assets 111,748 33,948
Accounts payable 445,924 (409,175)
Accrued employee compensation 49,079 9,900
Deferred revenue and other accrued expenses 618,890 75,014
Net cash used in operating activities (3,089,767) (2,737,516)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (16,617) (3,273)
Net cash used in investing activities (16,617) (3,273)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from the issuance of common stock 382,965
Net proceeds from related party convertible debt 96,667
Net proceeds from revolving note payable 2,070,000
Net proceeds from warrant exercises 140,215
Net proceeds from convertible debt 2,102,382
Net proceeds from non-convertible debt 2,400,752 865,152
Payments on convertible debt (840,541)
Payments on non-convertible debt (783,682) (781,221)
Net cash provided by financing activities 2,986,744 2,665,945
NET DECREASE IN CASH (119,640) (74,844)
CASH AT BEGINNING OF YEAR 138,363 116,783
CASH AT END OF PERIOD 18,723 41,939
SUPPLEMENTAL INFORMATION    
Interest paid in cash 282,906 1,154
NON CASH TRANSACTIONS:    
Discount due to warrants issued with debt 668,544
Unrealized gain from available-for-sale equity securities 6,190 234,972
Derivative liability released upon warrant exercise 49,327
Debt discount from derivative liability 1,304,049
Cashless exercise of warrants 11,100
Conversion of preferred stock into common stock 55,200 63,904
Convertible debt exchanged for common stock 117,837
Common stock issued with debt 321,127 104,731
Common stock issued to settle non-convertible debt 41,200
Common stock issued in lieu of cash for interest 185,603
Discount due to beneficial conversion feature 20,721
Discount due to warrants issued with debt 39,755
Reclassification of derivative liabilities to equity upon adoption of ASU 2017-11 1,689,386
Discount from one-time interest $ 225,000