Annual report pursuant to Section 13 and 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.6.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash Flows from Operating Activities    
Net Loss $ (19,250,082) $ (13,427,478)
Non-Cash Adjustments    
Depreciation and Amortization 770,668 380,841
Amortization of Software Development Costs in cost of sales products 286,450 286,450
Impairment of Patents and Trademarks 20,506 13,222
Common Stock Awards Compensation Expense 146,050 1,669,700
Loss on disposal of fixed assets 25,890 0
Stock-Based Option Compensation Expense 756,928 568,848
Amortization of Term Debt Discount 486,856 751,968
Amortization of Debt Issuance Costs 46,574 46,447
Common Stock and Warrants Issued for Services 174,026 1,057,074
(Gain) Loss on Derivative Valuation (34,744) 1,098,465
Loss on Inventory Valuation 1,124,401 0
(Increase) Decrease in Operating Assets    
Accounts Receivable 222,380 57,839
Inventories (426,521) (2,437,149)
Vendor Prepayments 225,243 (213,320)
Prepaid Expenses and Other Assets (78,389) (306,078)
Increase (Decrease) in Operating Liabilities    
Accounts Payable 178,037 (1,276,132)
Accrued Expense 31,909 143,830
Customer Deposits 38,315 (92,703)
Unearned Revenue 440,091 16,078
Income and Other Taxes Payable 5,217 (28,085)
Accrued Compensation 290,000 (70,067)
Accrued Interest & Long-Term Accrued Interest Converted 123,231 92,171
Net Cash Flows Used in Operating Activities (14,396,964) (11,668,079)
Cash Flows from Investing Activities    
Purchases of Fixed Assets (2,039,299) (1,892,831)
Investments in Patents and Trademarks (147,004) (191,908)
Net Cash Used in Investing Activities (2,186,303) (2,084,739)
Cash Flows from Financing Activities    
Proceeds from Exercise of Warrants 60,750 1,272,627
Repayment of Capital Leases 0 (16,882)
Repayment of Long-Term Debt and Notes Payable (76,875) (197,167)
Proceeds from Preferred Stock Offering 0 24,813,000
Issuance Costs on Preferred Stock Offering 0 (214,169)
Proceeds from Common Stock Offerings 21,112,500
Issuance Costs on Common Stock Offerings (1,874,485)
Net Change in Lines of Credit 0 (112,500)
Proceeds from Exercise of Stock Options 18,263 0
Net Cash Flows Provided by Financing Activities 19,240,153 25,544,909
Net Increase in Cash and Cash Equivalents 2,656,886 11,792,091
Cash and Cash Equivalents - Beginning of Period 11,877,058 84,967
Cash and Cash Equivalents - End of Period 14,533,944 11,877,058
Supplemental Disclosures    
Interest Paid in Cash 7,696 41,194
Common Stock and Warrants Issued for Services 174,026 936,937
Conversion of Term Debt and Accrued Interest into Common Stock 342,036 472,500
Reclassification of Derivative Liability to Paid-In Capital upon Waiver of Certain Anti-Dilutive Provisions of Warrants and Convertible Debt 0 11,543,354
Common Stock Issued for Services, Classified as Prepaid Expense Upon Issuance 190,500 0
Reclassification of Derivative Liability Upon Warrant Exercises 32,911 2,855,463
Receivable from Stock Option Exercise $ 14,820 $ 0