Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
OPERATING ACTIVITIES    
Net loss $ (3,760,019) $ (4,651,858)
Adjustments to reconcile net loss to net cash flows used in operating activities:    
Depreciation and amortization 526,415 504,543
Amortization of debt issuance costs 173,249 15,669
Amortization of beneficial conversion feature of convertible debt 115,973 0
Common stock issued for professional services 433,125 366,000
Stock-based compensation 817,708 2,344,286
Bad debt expense 28,140 0
Interest on note receivable 0 (60,822)
Accrued interest payable 21,227 0
Change in operating assets and liabilities:    
Accounts receivable 4,517 (857,323)
Prepaid inventory 0 (3,225,506)
Inventory 635,620 1,767,145
Prepaid expenses and other current assets 45,065 (6,767)
Accounts payable and accrued expenses 53,320 (21,614)
Net cash used in operating activities (905,660) (3,826,247)
INVESTING ACTIVITIES    
Purchase of equipment 0 (89,983)
Repayment of notes receivable 0 151,522
Net cash flows provided by investing activities 0 61,539
FINANCING ACTIVITIES    
Common stock issued for cash 0 2,520,000
Borrowing from issuance of note payable, net of costs 801,430 0
Borrowing from issuance of secured convertible note payable, net 1,975,000 753,976
Payment of contingent consideration (250,000) 0
Repayment of convertible debt (612,000) 0
Repayment of unsecured note payable (118,910) 0
Net cash flows provided by financing activities 1,795,520 3,273,976
Net increase (decrease) in cash 889,860 (490,732)
Cash, beginning of period 518,462 2,302,418
Cash, end of period 1,408,322 1,811,686
Supplemental disclosures of non-cash transactions:    
Conversion of convertible promissory notes to common stock (408,000) 0
Value of warrants issued with unsecured promissory note (266,800) 0
Beneficial conversion feature on secured convertible promissory note (370,000) 0
Inventory returned in satisfaction of note receivable 68,112 0
Supplemental cash flow disclosures:    
Interest paid 285,788 1,289
Taxes paid $ 9,328 $ 24,854