Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.3.1.900
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
OPERATING ACTIVITIES    
Net loss $ (12,233,128) $ (1,311,951)
Adjustments to reconcile net loss to net cash flows used in operating activities:    
Depreciation and amortization 1,012,335 933,600
Amortization of debt issuance costs 264,699 0
Amortization of beneficial conversion feature of convertible debt 574,108 589,474
Stock issued pursuant to employment agreement 0 42,125
Stock-based compensation 5,719,761 7,915,833
Note receivable issued on litigation settlement (600,000) 0
Stock issued for services 328,432 0
Loss on equity investment 0 38,552
Gain on sale of equity investment 0 (7,899,306)
Bad debt expense 2,654,836 (300,000)
Other 0 34,816
Change in operating assets and liabilities:    
Accounts receivable (588,145) 1,205,952
Prepaid inventory 519,620 1,215,211
Inventory (2,467,669) (9,192,929)
Prepaid expenses and other current assets 75,977 (352,787)
Accounts payable 113,021 190,859
Accrued expenses 417,886 178,552
Net cash used in operating activities (4,208,267) (6,711,999)
INVESTING ACTIVITIES    
Cash paid on CanX acquisition (250,000) 0
Purchase of equipment (113,527) (449,211)
Issuance of note receivable (2,002,910) (1,200,000)
Repayment of notes receivable 623,677 264,827
Net cash flows from investing activities (1,742,760) (1,384,384)
FINANCING ACTIVITIES    
Common stock issued for cash 2,520,000 8,247,500
Borrowing from convertible debt, net 1,508,096 0
Issuance of note payable from vendor 178,054 0
Payments on note payable from vendor (39,079) 0
Repayment of loan to Roen Ventures 0 (92,069)
Repayment of loan from related party 0 (300)
Net cash flows from financing activities 4,167,071 8,155,131
Net (decrease) increase in cash (1,783,956) 58,748
Cash, beginning of year 2,302,418 2,243,670
Cash, end of year 518,462 2,302,418
Supplemental disclosures of non-cash transactions:    
Goodwill acquired in CanX acquisition 2,538,300 0
Intangible asset acquired in CanX acquisition 3,907,000 0
Contingent consideration on CanX acquisition (3,739,000) 0
Common shares issued on CanX acquisition (1,150,000) 0
Deferred tax liability on CanX Acquisition (1,556,300) 0
Beneficial conversion feature on convertible debt (612,500) 0
Conversion of convertible promissory notes 765,000 0
Common stock received in exchange for payment on notes receivable 241,889 0
Common stock issued for services (87,600) 0
Common stock issued for accrued interest (13,373) 0
Conversion of Line of credit - Roen Ventures, LLC to common stock 0 6,000,000
Conversion of accounts receivable to note receivable 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 0 187,453
Income taxes paid $ 0 $ 0