v3.7.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (6,178,275) $ (4,988,561)
Adjustments to reconcile net loss to net cash used in operating activities:    
Common stock issued for debt extension 10,000
Depreciation and amortization 4,716 12,325
Accretion of interest and amortization of debt discount 2,922,265 1,831,289
Issuance of incentive warrants 6,329,549
Gain on forgiveness of debt (50,000)
Gain on settlement of debt (5,044)
Stock-based compensation expense 179,511 192,311
Amortization of third party fees paid in common stock and warrants 312,200
Warrants issued for service 15,558
Shares issued for service 15,000
Impairment loss on investment 6,069
Change in fair value of derivative liabilities 271,227 1,035,628
Changes in operating assets and liabilities:    
Accounts receivable (282,728) (397,852)
Inventories (226,204) 35,989
Prepaid expenses and other assets 82,193 68,966
Accounts payable 338,838 (51,526)
Accrued employee compensation 310,615 20,771
Deferred revenue and other accrued expenses 4,715 65,448
Net cash used in operating activities (2,389,698) (1,868,056)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (16,617) (245)
Net cash used in investing activities (16,617) (245)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party convertible debt 96,667
Net proceeds from revolving note payable 1,660,000
Net proceeds from warrant exercises 140,215
Net proceeds from convertible debt 1,417,382
Payments on convertible debt (840,541)
Net proceeds from non-convertible debt 1,987,752 623,311
Payments on non-convertible debt (478,141) (314,210)
Net cash provided by financing activities 2,469,285 1,823,150
NET DECREASE IN CASH 62,970 (45,151)
CASH AT BEGINNING OF YEAR 138,363 116,783
CASH AT END OF PERIOD 201,333 71,632
SUPPLEMENTAL INFORMATION    
Interest paid in cash 173,243 1,154
NON CASH TRANSACTIONS:    
Discount due to warrants issued with debt 554,998
Unrealized gain from available-for-sale equity securities 6,190 (212,739)
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 63,459
Convertible debt exchanged for common stock 117,837
Convertible debt held in escrow 166,882
Common stock issued with debt 297,252 10,952
Discount due to beneficial conversion feature 7,962
Discount due to warrants issued with debt 39,755
Discount from one-time interest $ 175,000

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