Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash Flows from Operating Activities    
Net Loss $ (7,879,229) $ (7,493,179)
Non-Cash Adjustments    
Depreciation and Amortization 352,874 138,187
Amortization of Software Development Costs in Cost of Sales products 143,225 143,225
Common Stock Awards Compensation Expense 50,800 1,475,000
Stock Based Option Compensation Expense 349,206 252,331
Amortization of Term Debt Discount and Debt Issuance Costs 259,182 542,973
Common Stock and Warrants Issued for Services 124,874 821,121
(Gain) Loss on Derivative Valuation (1,987) 1,026,706
(Increase) Decrease in Operating Assets    
Accounts Receivable 223,811 299,153
Inventories (121,856) (174,889)
Vendor Prepayments (55,163) (687,681)
Prepaid Expenses and Other Assets (210,899) (90,547)
Increase (Decrease) in Operating Liabilities    
Accounts Payable 149,734 (1,495,169)
Accrued Expense 179,151 20,770
Customer Deposits 7,123 (98,678)
Unearned Revenue 191,654 15,188
Income and Other Taxes Payable 11,327 (28,426)
Accrued Interest & Long-Term Accrued Interest Converted (160,967) 43,954
Net Cash Flows Used in Operating Activities (6,387,140) (5,289,961)
Cash Flows from Investing Activities    
Purchases of Tooling and Equipment (836,541) (171,243)
Purchases of Marketable Securities 0 (5,000,000)
Investments in Patents and Trademarks (56,834) (126,975)
Net Cash Used in Investing Activities (893,375) (5,298,218)
Cash Flows from Financing Activities    
Proceeds from Exercise of Warrants 45,000 1,217,626
Repayment of Capital Leases 0 (10,873)
Repayment of Long-Term Debt and Notes Payable (55,210) (141,883)
Proceeds from Preferred Stock Offering 0 24,813,000
Issuance Costs on Preferred Stock Offering 0 (214,169)
Net Change in Line of Credit 0 (112,500)
Net Cash Flows (Used in ) Provided by Financing Activities (10,210) 25,551,201
Net (Decrease) Increase in Cash and Cash Equivalents (7,290,725) 14,963,022
Cash and Cash Equivalents - Beginning of Period 11,877,058 84,967
Cash and Cash Equivalents - End of Period 4,586,333 15,047,989
Supplemental Disclosures    
Interest Paid in Cash 11,444 25,495
Common Stock and Warrants Issued for Services, Initially Classified as Prepaid Expense 174,025 843,937
Conversion of Long-Term Debt and Accrued Interest 22,500 427,500
Reclassification of Derivative Liability to Paid-In Capital upon Waiver of Certain Anti-Dilutive Provisions of Warrants and Convertible Debt 0 11,543,354
Reclassification of Derivative Liability Upon Warrant Exercises $ 0 $ 2,855,463