Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
OPERATING ACTIVITIES    
Net income (loss) $ 619,334 $ (3,784,777)
Adjustments to reconcile net income (loss) to net cash flow used in operating activities:    
Depreciation and amortization 119,046 56,375
Amortization of debt issuance costs 0 59,312
Amortization of derivative liability discount 13,160 3,663
Stock-based compensation 1,035,153 1,186,291
Royalty buy-out 0 2,432,000
Bad debt expense 2,498 0
Accrued interest payable 0 40,245
Gain on change in derivative liability 0 (210,600)
Change in operating assets and liabilities:    
Accounts receivable 234,685 (492,573)
Inventory 509,027 687,767
Prepaid expenses and other current assets 95,249 (110,378)
Accounts payable and accrued expenses (1,061,632) 158,262
Deferred rent 87,681 0
Net cash provided by operating activities 1,654,201 25,587
INVESTING ACTIVITIES    
Purchase of equipment (137,515) 0
Tenant improvements to leasehold real estate (71,215) 0
Net cash flows (used in) Investing activities (208,730) 0
FINANCING ACTIVITIES    
Borrowing from convertible debt, net of costs 0 750,000
Repayment of convertible debt in cash (300,000) 0
Repayment of unsecured notes payable (49,487) (52,562)
Net cash flows provided by (used in) financing activities (349,487) 697,438
Net increase in cash and restricted cash 1,095,984 723,025
Cash and restricted cash, beginning of period 2,791,544 1,057,468
Cash and restricted cash, end of period 3,887,528 1,780,493
Supplemental disclosure of non-cash transactions:    
Conversion of convertible promissory notes and accrued interest to common stock 0 1,050,000
Value of embedded derivative at inception 0 29,300
Stock redemptions 0 75,000
Supplemental cash flow disclosures:    
Interest paid $ 34,000 $ 27,735