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, 2017
Jun. 30, 2016
OPERATING ACTIVITIES    
Net loss $ (4,776,963) $ (3,760,019)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:    
Depreciation and amortization 104,547 526,415
Amortization of debt issuance costs 119,892 173,249
Amortization of beneficial conversion feature of convertible debts 15,088 115,973
Common stock issued for professional services 0 433,125
Stock-based compensation 1,744,128 817,708
Royalty buy-out 2,432,000 0
Bad debt expense 400,435 28,140
Accrued interest payable 75,666 21,227
Gain on change in derivative liabilities (237,888) 0
Change in operating assets and liabilities:    
Accounts receivable (298,319) 4,517
Inventory 872,582 635,620
Prepaid expenses and other current assets (691,981) 45,065
Accounts payable and accrued expenses 445,092 53,320
Net cash provided by (used in) operating activities 204,279 (905,660)
INVESTING ACTIVITIES    
Purchase of equipment (6,410) 0
Net cash flows used in investing activities (6,410) 0
FINANCING ACTIVITIES    
Borrowings from secured convertible debt, net of costs 750,000 1,975,000
Borrowing from issuance of unsecured note payable, net of costs 0 801,430
Payment of contingent consideration 0 (250,000)
Repayment of convertible debt 0 (612,000)
Repayment of unsecured notes payable (107,767) (118,910)
Net cash flows provided by financing activities 642,233 1,795,520
Net increase in cash and restricted cash 840,102 889,860
Cash and restricted cash, beginning of period 1,057,468 518,462
Cash and restricted cash, end of period 1,897,570 1,408,322
Supplemental disclosures of non-cash transactions:    
Conversion of convertible promissory notes and accrued interest to common stock 1,325,000 408,000
Value of warrants issued with unsecured promissory note   266,800
Inventory returned in satisfaction of note receivable 0 68,112
Value of embedded derivative at inception 29,300 370,000
Equity consideration for royalty buyout 15,000,000 0
Stock redemptions 75,000 0
Issuance of common stock to settle restricted stock units 1,000,000 0
Issuance of stock for prepaid expenses and other current assets 202,000 0
Supplemental cash flow disclosures:    
Interest paid 52,828 285,788
Taxes paid $ 35,033 $ 9,328