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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (3,157,852) $ (6,824,004)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 3,557 2,469
Amortization 105,882 112,732
Provision for bad debt expense 140,152 (51,769)
Provision for inventory losses 110,000 0
Change in estimated fair value of derivative (3,026,433) (749,943)
Fair value of common stock issued for services 18,000 470,062
Stock based compensation 229,858 453,491
Change in operating assets and liabilities:    
Accounts receivable 1,258,991 (104,970)
Inventory 707,364 (903,897)
Prepaid expenses and other current assets (160,523) 386,768
Accounts payable and accrued expenses (623,123) (142,177)
Net cash used in operating activities (4,394,127) (7,351,238)
Cash flows from investing activities:    
Restricted cash (158) (76,110)
Purchase of property and equipment (11,775) 0
Net cash used in investing activities (11,933) (76,110)
Cash flow from financing activities:    
Proceeds from warrants exercised for cash 45,000 0
Proceeds from issuance of Series C Preferred Stock 6,000,000 9,000,048
Borrowings on debt 94,998 1,035,792
Repayments on debt (703,778) (3,184,786)
Net cash provided by financing activities 5,436,220 6,851,054
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,030,160 (576,294)
CASH AND CASH EQUIVALENTS - beginning of period 376,840 668,326
CASH AND CASH EQUIVALENTS - end of period 1,407,000 92,032
SUPPLEMENTAL DISCLOSURES    
Interest paid in cash 41,758 137,556
Non-cash transactions:    
Conversion of preferred stock to common stock 1,473 54,034
Dividend paid in common stock 198,449 203,397
Dividends declared 198,929 68,636
Conversion of notes payable and accrued interest to Series C preferred stock 500,000 1,214,206
Warrants issued in connection with Series C Preferred Offering 3,159,721 2,858,742
Issuance of restricted stock $ 2,620