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 ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
OPERATING ACTIVITIES    
Net loss $ (5,366,946) $ (5,660,755)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:    
Depreciation and amortization 144,294 789,742
Amortization of debt issuance costs 163,599 231,131
Amortization of beneficial conversion feature of convertible debts 26,076 300,973
Common stock issued in exchange for professional services 0 541,126
Stock-based compensation 3,072,224 1,357,684
Royalty buy-out 2,432,000 0
Bad debt expense 400,435 59,143
Accrued interest payable 103,603 73,779
Gain on change in derivative liabilities (248,875) 0
Change in operating assets and liabilities:    
Accounts receivable (774,473) 67,796
Inventory 856,229 995,944
Prepaid expenses and other assets (971,567) (45,713)
Accounts payable and accrued expenses 810,617 (140,127)
Net cash provided by (used in) operating activities 647,216 (1,429,277)
INVESTING ACTIVITIES    
Purchase of equipment (6,410) (17,207)
FINANCING ACTIVITIES    
Borrowings from secured convertible debt, net of costs 0 801,430
Borrowing from issuance of unsecured note payable, net of costs 750,000 1,975,000
Payment of contingent consideration 0 (250,000)
Repayment of convertible debt 0 (612,000)
Repayment of unsecured notes payable (125,964) (138,975)
Net cash flows provided by financing activities 624,036 1,775,455
Net increase in cash and restricted cash 1,264,842 328,971
Cash and restricted cash, beginning of period 1,057,468 518,462
Cash and restricted cash, end of period 2,322,310 847,433
Supplemental disclosures of non-cash transactions:    
Conversion of convertible promissory notes and accrued interest to common stock 1,655,000 408,000
Value of warrants issued with unsecured promissory note 0 266,800
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 1,500 0
Stock redemptions 75,000 0
Issuance of common stock to settle restricted stock units 200 0
Shares issued in exchange for purchase of inventory 202,000 0
Supplemental cash flow disclosures:    
Interest paid 78,397 311,359
Taxes paid $ 39,584 $ 21,583