Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (7,315,842) $ (3,940,651)
Adjustments to reconcile net loss from operations to cash used by operations:    
Depreciation 190,026 187,802
Stock based compensation 341,210 165,922
Interest expense on convertible debentures 23,777
Legal, consulting and investment services 168,873
Interest expense paid in kind 247,500
Write down of inventory 78,917 120,167
Effects of changes in operating assets and liabilities:    
Accounts receivable (476,100)  
Inventory (1,863,213)  
Prepaid expenses and deposits 179,303 (34,848)
Accounts payable (3,343) 214,105
Accounts payable, related parties (375,587) 26,195
Net cash used by operations (9,244,629) (2,821,158)
Cash flows from investing activities:    
Capital expenditures (90,665) (35,530)
Net cash used by investing activities (90,665) (35,530)
Cash flows from financing activities:    
Proceeds from notes payable 460,000
Payments on long-term debt (4,170)
Conversion of note payable (2,722,500) 392,000
Shareholder advances, net of repayments 1,811,296 700,500
Issuance of common and preferred stock 1,027,031
Exercise of warrants and options 6,231,497  
Net cash provided by financing activities 5,320,293 2,575,361
Change in cash and cash equivalents (4,015,001) (281,327)
Cash at the beginning of the period 7,677,163 442,257
Cash at the end of the period $ 3,662,162 $ 160,931