Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.4.0.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows from operating activities:    
Net loss $ (4,380,012) $ (2,059,358)
Adjustments to reconcile net loss from operations to cash used by operations:    
Depreciation 93,469 93,830
Stock based compensation $ 233,057 99,117
Interest expense on convertible debentures 26,110
Legal, consulting and investment services 154,623
Interest expense paid in kind 247,500
Inventory reserve $ 78,917 61,756
Effects of changes in operating assets and liabilities:    
Accounts receivable (20,000)  
Prepaid expenses and deposits (94,808) (6,907)
Accounts payable 908,671 (121,945)
Accounts payable, related parties (213,618) 11,640
Net cash used by operations (3,394,324) (1,493,635)
Cash flows from investing activities:    
Capital expenditures (28,899) (26,248)
Net cash used by investing activities $ (28,899) (26,248)
Cash flows from financing activities:    
Proceeds from notes payable 200,000
Payments on long-term debt $ (2,722,500) (2,265)
Conversion of note payable 392,000
Shareholder advances, net of repayments $ 1,575,500 47,849
Issuance of common and preferred stock   727,108
Exercise of warrants 2,110,000  
Net cash provided by financing activities 963,000 1,364,692
Change in cash and cash equivalents (2,460,223) (155,191)
Cash at the beginning of the period 7,677,163 442,257
Cash at the end of the period $ 5,216,940 $ 287,066