Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statement of Cash Flows (Unaudited)

v3.2.0.727
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (12,515,067) $ (2,467,779)
Adjustments to reconcile net loss to net cash (used) from operating activities:    
Stock issued for services 134,400 409,010
Stock issued for compensation 0 76,500
Stock issued as debenture interest payments 552,242 0
Depreciation and amortization 44,400 43,143
Revaluation of warrants and convertible debt 5,566,022 0
Amortization of discount on notes payable 0 154,881
Amortization of discount on convertible debentures 1,474,566 94,376
Change in fair value of derivative liability 3,032,501 0
Change in operating assets and liabilities:    
Accounts receivable 96 (3,499)
Other receivable 0 (7,000)
Prepaid loan costs 192,166 (436,559)
Prepaid expenses 5,424 84,229
Deposits on inventory 0 (149,016)
Inventory 80,128 (834,915)
Rent and utility deposits 0 (13,330)
Accounts payable and accrued expenses 186,150 (41,460)
Deferred revenue 6,968 (619)
Accrued interest (272,241) 7,705
Net cash (used) by operating activities (1,512,245) (3,084,333)
Cash flows from investing activities:    
Purchase of property and equipment (18,223) (50,938)
Net cash (used) by investing activities (18,223) (50,938)
Cash flows from financing activities:    
Proceeds from common stock sales 548,400 0
Proceeds from exercising warrants 28,750 0
Proceeds from notes payable, related parties 0 475,000
Proceeds from notes payable, unrelated parties 0 25,000
Proceeds from bank line of credit 0 900,000
Proceeds from convertible senior secured debentures 625,000 7,000,000
Repayment of notes payable, related parties 0 (1,498,933)
Repayment of notes payable, unrelated parties 0 (125,000)
Repayment of bank line of credit 0 (900,000)
Cash flows from financing activities 1,202,150 5,876,067
Net (decrease) increase in cash and cash equivalents (328,318) 2,740,796
Cash and cash equivalents, beginning of period 491,988 305,649
Cash and cash equivalents, end of period 163,670 3,046,445
Supplemental cash flow information:    
Interest paid in cash 0 9,227
Loan fees paid in conjunction with warrants granted to placement agents in convertible debenture offering 0 185,874
Discount recognized on debentures payable 220,125 1,872,207
Amount of debt and accrued interest converted $ 267,500 $ 0
Number of shares issued on conversion of debt and accrued interest (in Shares) 3,566,667 0
Income taxes paid $ 0 $ 0
Stock Issued for Interest on Debentures [Member]    
Supplemental cash flow information:    
Number of shares issued for interest (in Shares) 3,381,060 0
Stock issued $ 522,242 $ 0
Stock Issued for Services [Member]    
Supplemental cash flow information:    
Stock issued $ 134,400 $ 409,010
Number of shares issued for services (in Shares) 360,000 892,289
Stock Issued for Compensation [Member]    
Supplemental cash flow information:    
Stock issued $ 0 $ 76,500
Number of shares issued for compensation (in Shares) 0 150,000