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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (5,994,252) $ (3,157,852)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 3,934 3,557
Amortization 90,000 105,882
Accretion of debt discount 17,846 0
Provision for bad debt expense (18,204) 140,152
Provision for inventory losses 0 110,000
Change in estimated fair value of derivative (2,272,697) (3,026,433)
Fair value of common stock issued for services 605,500 18,000
Stock based compensation 480,043 229,858
Change in operating assets and liabilities:    
Accounts receivable 291,541 1,258,991
Inventory (169,849) 707,364
Prepaid expenses and other current assets (55,967) (160,523)
Accounts payable and accrued expenses 1,379,568 (623,123)
Net cash used in operating activities (5,642,537) (4,394,127)
Cash flows from investing activities:    
Restricted cash 209,570 (158)
Purchase of property and equipment 0 (11,775)
Net cash used in investing activities 209,570 (11,933)
Cash flow from financing activities:    
Proceeds from warrants exercised for cash 0 45,000
Proceeds from issuance of Series C Preferred Stock 0 6,000,000
Proceeds from issuance of Series D Preferred Stock 4,562,500 0
Borrowings on debt 1,350,000 94,998
Principal repayments on debt (208,602) (703,778)
Net borrowings on line-of-credit facility (68,763) 0
Net cash provided by financing activities 5,635,135 5,436,220
NET INCREASE IN CASH 202,168 1,030,160
CASH AND CASH EQUIVALENTS - beginning of period 15,306 376,840
CASH AND CASH EQUIVALENTS - end of period 217,474 1,407,000
SUPPLEMENTAL DISCLOSURES    
Interest paid in cash 69,885 41,758
Non-cash transactions:    
Conversion of preferred stock to common stock 7,131 1,473
Dividend paid in common stock 196,086 198,449
Dividends declared but unpaid 196,086 198,929
Debt discount recorded in connection with borrowings on debt 164,411 0
Notes payable issued in exchange for accounts payable 1,049,564 0
Conversion of notes payable and accrued interest to Series C preferred stock 0 500,000
Warrants exchanged for common stock 6,080,278 0
Issuance of restricted stock $ 0 $ 2,620
Warrants issued in connection with Preferred Offering 2,627,931 3,159,721