v3.10.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (6,321,542) $ (7,889,676)
Adjustments to reconcile net loss to net cash used in operating activities:    
Common stock issued for debt extension 33,218 10,000
Depreciation and amortization 70,681 7,027
Accretion of interest and amortization of debt discount 1,405,490 3,548,244
Issuance of incentive shares and common stock warrants 663,130 186,802
Inventory reserve recovery (39,900)
Gain on extinguishment of debt (335,132) (90,862)
Stock-based compensation expense 299,584 318,910
Amortization of third party fees paid in common stock and warrants 46,558
Shares issued with debt 7,800
Change in fair value of derivative liabilities 26,014
Impairment loss on investment 3,182 6,069
Changes in operating assets and liabilities:    
Accounts receivable (167,481) (266,996)
Inventories (2,372) (217,498)
Prepaid expenses and other assets 141,214 111,748
Accounts payable 16,390 445,924
Accrued employee compensation 3,702 49,079
Deferred revenue and other accrued expenses 606,454 618,890
Net cash used in operating activities (3,615,582) (3,089,767)
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 2,070,000
Net proceeds from warrant exercises 140,215
Net proceeds from Series AA convertible preferred stock 1,255,463
Net proceeds from convertible debt 3,848,484
Net proceeds from non-convertible debt - third party 1,595,901 2,400,752
Net proceeds from non-convertible debt - related party 116,100
Payments on convertible debt (2,097,750) (840,541)
Payments on non-convertible debt (1,579,130) (783,682)
Payments on non-convertible debt – related party (58,600)
Net cash provided by financing activities 3,540,468 2,986,744
NET INCREASE (DECREASE) IN CASH (75,114) (119,640)
CASH AT BEGINNING OF YEAR 81,033 138,363
CASH AT END OF PERIOD 5,919 18,723
SUPPLEMENTAL INFORMATION    
Interest paid in cash 856,562 282,906
Income taxes paid
NON CASH TRANSACTIONS:    
Common stock issued in lieu of cash for interest 201,432 185,603
Common stock issued for services to be rendered 173,520
Common stock issued with debt 222,272 321,127
Discount from warrants issued with convertible debt 162,023 668,544
Discount from one-time interest 169,500 225,000
Unrealized gain from available-for-sale equity securities 6,190
Preferred stock dividends 373,318
Conversion of debt into preferred stock 12,688,634
Conversion of preferred stock into common stock 55,200
Contingent beneficial conversion feature on convertible note 253,000
Deemed dividend-triggered down round feature 213,012
Deemed dividend-beneficial conversion feature 11,678,571
Derivative liability released upon warrant exercise 49,327
Reclassification of derivative liabilities to equity and cumulative effect of adoption of ASU 2017-11 $ 1,689,386

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