v3.10.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (4,512,886) $ (6,178,275)
Adjustments to reconcile net loss to net cash used in operating activities:    
Common stock issued for debt extension 28,490 10,000
Depreciation and amortization 45,874 4,716
Accretion of interest and amortization of debt discount 986,155 2,922,265
Issuance of incentive shares and common stock warrants 663,130 186,802
Inventory reserve recovery (39,900)
Gain on extinguishment of debt (475,897)
Stock-based compensation expense 148,270 179,511
Amortization of third party fees paid in common stock and warrants 30,558
Shares issued with debt 7,800
Change in fair value of derivative liabilities 271,227
Impairment loss on investment 1,834 6,069
Changes in operating assets and liabilities:    
Accounts receivable (319,242) (282,728)
Inventories (2,501) (226,204)
Prepaid expenses and other assets 19,422 82,193
Accounts payable 108,698 338,838
Accrued employee compensation 58,925 310,615
Deferred revenue and other accrued expenses 678,789 4,715
Net cash used in operating activities (2,603,039) (2,339,698)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (16,617)
Net cash used in investing activities (16,617)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from revolving note payable 460,000 1,610,000
Net proceeds from warrant exercises 140,215
Net proceeds from Series AA convertible preferred stock 226,091
Net proceeds from convertible debt 3,242,950
Net proceeds from non-convertible debt - third party 952,501 1,987,752
Net proceeds from non-convertible debt - related party 102,100
Payments on convertible debt (1,518,500) (840,541)
Payments on non-convertible debt - related party (52,100)
Payments on non-convertible debt (872,545) (478,141)
Net cash provided by financing activities 2,540,497 2,419,285
NET INCREASE (DECREASE) IN CASH (62,542) (62,970)
CASH AT BEGINNING OF YEAR 81,033 138,363
CASH AT END OF PERIOD 18,491 201,333
SUPPLEMENTAL INFORMATION    
Interest paid in cash 525,979 173,243
Income taxes paid
NON CASH TRANSACTIONS:    
Common stock issued in lieu of cash for interest 90,023
Common stock issued with debt 170,745 297,252
Discount from warrants issued with convertible debt 162,023 554,998
Discount from one-time interest 154,500 175,000
Unrealized gain from available-for-sale equity securities 6,190
Preferred stock dividends 95,879
Conversion of debt into preferred stock 12,688,634
Contingent beneficial conversion feature on convertible note 253,000
Deemed dividend-triggered down round feature 213,012
Deemed dividend-beneficial conversion feature 10,532,291
Derivative liability released upon warrant exercise $ 49,327

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