Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
OPERATING ACTIVITIES    
Net loss $ (1,533,117) $ (2,648,809)
Adjustments to reconcile net loss to net cash flows used in operating activities:    
Depreciation and amortization 263,375 249,725
Amortization of debt issuance costs 126,086 0
Amortization of beneficial conversion feature of convertible debt 38,392 0
Common stock issued for underwriting services 175,000 0
Stock-based compensation 405,151 1,755,994
Interest on note receivable 0 (31,562)
Change in operating assets and liabilities:    
Accounts receivable 2,133 (934,150)
Prepaid inventory 0 (1,809,379)
Inventory 321,293 885,796
Prepaid expenses and other current assets (15,508) (36,897)
Accounts payable and accrued expenses 104,937 (13,569)
Net cash used in operating activities (112,258) (2,582,851)
INVESTING ACTIVITIES    
Purchase of equipment 0 (74,698)
Repayment of notes receivable 0 75,117
Net cash flows provided by investing activities 0 419
FINANCING ACTIVITIES    
Common stock issued for cash 0 2,520,000
Borrowing from issuance of note payable, net of costs 801,430 0
Repayment of convertible debt (612,000) 0
Repayment of unsecured note payable (59,493) 0
Net cash flows provided by financing activities 129,937 2,520,000
Net increase (decrease) in cash 17,679 (62,432)
Cash, beginning of period 518,462 2,302,418
Cash, end of period 536,141 2,239,986
Supplemental disclosures of non-cash transactions:    
Conversion of convertible promissory notes to common stock (408,000) 0
Value of warrants issued with unsecured promissory note (266,800) 0
Common stock issued for underwriting services (175,000) (87,600)
Inventory returned in satisfaction of note receivable 61,897 0
Supplemental cash flow disclosures:    
Interest paid 259,934 0
Taxes paid $ 0 $ 16,091