Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash Flows from Operating Activities    
Net Loss $ (13,754,038) $ (12,915,091)
Non-Cash Adjustments    
Depreciation and Amortization 734,175 549,244
Amortization of Software Development Costs in cost of sales products 214,838 214,836
Stock Based Option Compensation Expense 912,102 540,843
Common Stock Awards Compensation Expense 83,750 174,025
Loss on Disposal of Fixed Assets 585 25,890
Amortization of Term Debt Discount 155,760 391,334
Amortization of Debt Issuance Costs 19,500 34,867
Common Stock Issued for Services 100,000 241,300
(Gain) Loss on Derivative Valuation (50,598) 57,133
Loss on Inventory Valuation 1,151,482 0
(Increase) Decrease in Operating Assets    
Accounts Receivable (367,170) 206,409
Accrued Revenue (687,001) 0
Inventories (1,342,855) (623,445)
Vendor Prepayments 26,644 163,471
Prepaid Expenses and Other Assets 285,980 (223,135)
Increase (Decrease) in Operating Liabilities    
Accounts Payable 734,478 622,119
Accrued Expense 253,398 311,291
Customer Deposits (2,573) 15,536
Unearned Revenue (392,242) 300,796
Income and Other Taxes Payable (5,626) 16,764
Accrued Compensation (240,110) 0
Accrued Interest 77,537 (142,347)
Net Cash Flows Used in Operating Activities (12,091,984) (10,038,160)
Cash Flows from Investing Activities    
Purchases of Fixed Assets (1,197,452) (1,551,141)
Investments in Patents and Trademarks (155,284) (103,375)
Investments in Software Development (329,204) 0
Net Cash Used in Investing Activities (1,681,940) (1,654,516)
Cash Flows from Financing Activities    
Proceeds from Exercise of Warrants 0 45,000
Repayment of Long-Term Debt and Notes Payable 0 (52,416)
Proceeds from Common Stock Offerings 8,567,500 6,612,500
Direct Costs from Common Stock Offerings (650,179) (847,805)
Net Cash Flows Provided by Financing Activities 7,917,321 5,757,279
Net Decrease in Cash and Cash Equivalents (5,856,603) (5,935,397)
Cash and Cash Equivalents — Beginning of Period 14,533,944 11,877,058
Cash and Cash Equivalents — End of Period 8,677,341 5,941,661
Supplemental Disclosures    
Interest Paid in Cash 310 7,860
Conversion of Debt and Accrued Interest 1,861,283 342,034
Subscription Receivable from Officer $ 61,000 $ 0