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, 2015
Jun. 30, 2014
OPERATING ACTIVITIES    
Net (loss) income $ (4,651,858) $ 7,922,013
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 504,543 444,658
Amortization of debt discount 15,669 589,474
Stock issued pursuant to employment agreement 0 35,075
Stock-based compensation 2,344,286 0
Stock issued for services 366,000 0
Loss on equity investment 0 38,552
Gain on sale of equity investment 0 (7,899,306)
Interest accrued on notes receivable (60,822) 0
Change in operating assets and liabilities:    
Prepaid expenses and other current assets (6,767) 38,215
Prepaid inventory (3,225,506) (1,019,029)
Inventory 1,767,145 (1,399,166)
Accounts receivable (857,323) (513,051)
Accounts payable and accrued expenses (21,614) 729,507
Net cash used in operating activities (3,826,247) (1,033,058)
INVESTING ACTIVITIES    
Purchase of equipment (89,983) (213,859)
Repayment of principal on notes receivable 151,522 118,658
Net cash provided by (used in) investing activities 61,539 (95,201)
FINANCING ACTIVITIES    
Common stock issued for cash 2,520,000 8,247,500
Proceeds from convertible debt 1,020,000 0
Convertible debt issuance costs (266,024) 0
Proceeds from (payment of) loan from Roen Ventures 0 (92,069)
Repayment of related party loan 0 (300)
Net cash provided by financing activities 3,273,976 8,155,131
Net (decrease) increase in cash (490,732) 7,026,872
Cash, beginning of period 2,302,418 2,243,670
Cash, end of period 1,811,686 9,270,542
Supplemental disclosure of non-cash transactions:    
Conversion of accounts receivable to notes receivable 0 6,000,000
Conversion of line of credit to common stock 0 (600,000)
Common stock to be issued 0 (175,000)
Common stock received in exchange for sale of investment 0 8,300,000
Supplemental cash flow disclosures:    
Interest paid 1,289 187,453
Taxes paid $ 24,854 $ 44,766