Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash Flows from Operating Activities    
Net Loss $ (8,251,762) $ (7,879,229)
Non-Cash Adjustments    
Depreciation and Amortization 482,809 352,874
Amortization of Software Development Costs in cost of sales products 143,225 143,225
Stock Based Option Compensation Expense 486,602 349,206
Amortization of Term Debt Discount 155,760 236,022
Amortization of Debt Issuance Costs 19,500 23,160
Common Stock Issued for Services 100,000 175,674
Loss on Derivative Valuation (9,144) (1,987)
(Increase) Decrease in Operating Assets    
Accounts Receivable (39,216) 223,811
Accrued Revenue (420,314) 0
Inventories (755,923) (121,856)
Vendor Prepayments (61,980) (55,163)
Prepaid Expenses and Other Assets 279,898 (210,899)
Increase (Decrease) in Operating Liabilities    
Accounts Payable 723,632 149,734
Accrued Expense 56,711 179,151
Customer Deposits (18,753) 7,123
Unearned Revenue (370,534) 191,654
Income and Other Taxes Payable (9,695) 11,327
Accrued Compensation (124,918) 0
Accrued Interest 65,260 (160,967)
Net Cash Flows Used in Operating Activities (7,548,842) (6,387,140)
Cash Flows from Investing Activities    
Purchases of Fixed Assets (662,993) (836,541)
Investments in Patents and Trademarks (92,767) (56,834)
Investments in Software Development (100,000) 0
Net Cash Used in Investing Activities (855,760) (893,375)
Cash Flows from Financing Activities    
Proceeds from Exercise of Warrants 0 45,000
Repayment of Long-Term Debt and Notes Payable 0 (55,210)
Net Cash Flows Used in Financing Activities 0 (10,210)
Net Decrease in Cash and Cash Equivalents (8,404,602) (7,290,725)
Cash and Cash Equivalents — Beginning of Period 14,533,944 11,877,058
Cash and Cash Equivalents — End of Period 6,129,342 4,586,333
Supplemental Disclosures    
Interest Paid in Cash 39 11,444
Conversion of Debt and Accrued Interest $ 1,861,283 $ 22,500