Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
OPERATING ACTIVITIES    
Net income (loss) $ 3,805,244 $ (4,776,963)
Adjustments to reconcile net income (loss) to net cash flow used in operating activities:    
Depreciation and amortization 244,910 104,547
Amortization of debt issuance costs and accrued interest 50,074 119,892
Amortization of beneficial conversion feature of convertible debts 0 15,088
Common stock issued for professional services 61,575 0
Stock-based compensation 1,396,302 1,744,128
Royalty buy-out 0 2,432,000
Bad debt expense 2,216 400,435
Accrued interest payable 0 75,666
Gain on change in derivative liability 0 (237,888)
Change in operating assets and liabilities:    
Accounts receivable (1,081,260) (298,319)
Notes receivable 17,500 0
Inventory 1,200,236 872,582
Prepaid expenses and other current assets 13,703 (691,981)
Accounts payable and accrued expenses (462,904) 445,092
Deferred rent 121,716 0
Net cash provided by operating activities 5,369,312 204,279
INVESTING ACTIVITIES    
Purchase of equipment (190,600) (6,410)
Tenant improvements to leasehold real estate 86,930 0
Net cash flows used in Investing activities (277,530) (6,410)
FINANCING ACTIVITIES    
Borrowing from convertible debt, net of costs 0 750,000
Repayment of convertible debt in cash (660,000) 0
Repayment of unsecured notes payable (99,552) (107,767)
Proceeds from exercise of stock options 107,402 0
Net cash flows provided by (used in) financing activities (652,150) 642,233
Net increase in cash and restricted cash 4,439,632 840,102
Cash and restricted cash, beginning of period 2,791,544 1,057,468
Cash and restricted cash, end of period 7,231,176 1,897,570
Supplemental disclosure of non-cash transactions:    
Conversion of convertible promissory notes and accrued interest to common stock 0 1,325,000
Value of embedded derivative at inception 0 29,300
Issuance of common stock in consideration for royalty buyout 0 15,000,000
Issuance of common stock to settle restricted stock units 0 1,000,000
Issuance of common stock for prepaid expenses and other current assets 0 202,000
Stock redemptions 0 75,000
Supplemental cash flow disclosures:    
Interest paid 119,830 52,828
Taxes paid $ 17,699 $ 35,033