Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
OPERATING ACTIVITIES    
Net loss $ (3,784,777) $ (1,533,117)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:    
Depreciation and amortization 56,375 263,375
Amortization of debt issuance costs 59,312 126,086
Amortization of beneficial conversion feature of convertible debts 0 38,392
Amortization of derivative liability discounts 3,663 0
Common stock issued for professional services 0 175,000
Stock-based compensation 1,186,291 405,151
Royalty buy-out 2,432,000 0
Accrued interest payable 40,245 0
Gain on change in derivative liability (210,600) 0
Change in operating assets and liabilities:    
Accounts receivable (492,573) 2,133
Inventory 687,767 321,293
Prepaid expenses and other current assets (110,378) (15,508)
Accounts payable and accrued expenses 158,262 104,937
Net cash provided by (used in) operating activities 25,587 (112,258)
INVESTING ACTIVITIES    
Net cash flows provided by investing activities 0 0
FINANCING ACTIVITIES    
Borrowings from secured convertible debt, net of costs 750,000 0
Borrowing from issuance of unsecured note payable, net of costs 0 801,430
Repayment of convertible debt 0 (612,000)
Repayment of unsecured notes payable (52,562) (59,493)
Net cash flows provided by financing activities 697,438 129,937
Net increase in cash and restricted cash 723,025 17,679
Cash and restricted cash, beginning of period 1,057,468 518,462
Cash and restricted cash, end of period 1,780,493 536,141
Supplemental disclosures of non-cash transactions:    
Conversion of convertible promissory notes and accrued interest to common stock 1,050,000 408,000
Value of warrants issued with unsecured promissory note 0 266,800
Inventory returned in satisfaction of note receivable 0 61,897
Value of embedded derivative at inception 29,300 0
Stock redemptions 75,000 0
Supplemental cash flow disclosures:    
Interest paid 27,735 259,934
Taxes paid $ 0 $ 0