Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.3.0.814
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss during the development stage $ (5,674,400) $ (4,960,900)
Adjustments to reconcile net loss from operations to cash used by operations:    
Depreciation 281,774 294,576
Stock based compensation $ 279,335 1,285,118
Interest expense on convertible debentures 13,269
Rent and legal, consulting and investment services $ 168,873 794,547
Interest expense paid in kind 247,500 $ 225,000
Inventory reserve 193,778
Effects of changes in operating assets and liabilities:    
Prepaid expenses and deposits (12,364) $ (26,998)
Accounts payable 406,262 (190,451)
Accounts payable, related parties $ (65,797) (114,523)
Customer deposits (177,500)
Net cash used by operations $ (4,175,038) $ (2,857,862)
Cash flows from investing activities:    
Capital expenditures (32,529)
Net cash used by investing activities (32,529)
Cash flows from financing activities:    
Proceeds from notes payable 1,172,000
Payments on long-term debt (5,045) $ (323,323)
Shareholder advances, net of repayments 1,712,200 (1,934,300)
Issuance of common and preferred stock 1,027,032 5,942,300
Net cash provided by financing activities 3,906,187 3,684,677
Change in cash and cash equivalents (301,380) 826,815
Cash at the beginning of the period 442,257 7,019
Cash at the end of the period $ 140,877 $ 833,834