Financials

v3.3.0.814
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 80,001 $ 491,988
Accounts receivable, net of allowance for doubtful accounts of $478 as of September 30, 2015 and $4,978 as of December 31, 2014 16,698 12,626
Prepaid loan costs 138,011 487,271
Prepaid expenses, other 35,539 50,809
Inventory 1,351,242 1,459,306
Total current assets 1,621,491 2,502,000
Property and equipment:    
Fixed assets, net of accumulated depreciation of $176,856 and $116,863 as of September 30, 2015 and December 31, 2014 207,483 255,260
Patent, net of accumulated amortization of $6,198 and $4,698 as of September 30, 2015 and December 31, 2014 27,922 29,422
Rent and utility deposits 11,180 11,180
Total assets 1,868,076 2,797,862
Current liabilities:    
Accounts payable and accrued expenses 596,191 235,555
Deferred revenue 14,544 4,513
Accrued interest    
Related 5,058 14,071
Unrelated $ 58,973 $ 311,603
Convertible senior secured debentures, net of discount of $2,113,383 and $1,120,509 as of September 30, 2015 and December 31, 2014
Related $ 402,865 $ 246,548
Unrelated 4,691,252 5,457,943
Convertible note payable, net of discount of $36,767 as of September 30, 2015 83,983 0
Derivative liability 2,193,898 0
Total current liabilities 8,046,764 6,270,233
Stockholders’ deficit:    
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding 0 0
Common stock, $0.001 par value, 100,000,000 shares authorized; issued and outstanding of 60,515,071 and 41,416,113 at September 30, 2015 and December 31, 2014 60,516 41,416
Common stock owed but not issued: 917,681 and 1,127,859 at September 30, 2015 and December 31, 2014 917 1,128
Paid in capital 20,509,400 9,997,061
Accumulated deficit (26,749,521) (13,511,976)
Total stockholders’ deficit (6,178,688) (3,472,371)
Total liabilities and stockholders’ deficit $ 1,868,076 $ 2,797,862

Source

v3.3.0.814
Condensed Consolidated Statement of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Revenues $ 61,954 $ 20,334 $ 157,262 $ 39,346
Cost of sales 32,533 13,397 86,767 27,501
Gross profit 29,421 6,937 70,495 11,845
Depreciation and amortization 23,100 24,858 67,500 68,001
General and administrative expenses 526,377 1,184,489 2,422,227 2,973,393
549,477 1,209,347 2,489,727 3,041,394
Loss from operations (520,056) (1,202,410) (2,419,232) (3,029,549)
Other income (expense):        
Interest income 0 1,262 0 1,999
Interest expense (1,041,025) (572,155) (2,506,270) (1,213,532)
Loss in extinguishment of debt 0 0 (6,118,145) 0
Change in fair value of derivative liability 838,603 0 (2,193,898) 0
Total other income (expense) (202,422) (570,893) (10,818,313) (1,211,533)
Loss before income tax (722,478) (1,773,303) (13,237,545) (4,241,082)
Provision for income tax expense 0 0 0 0
Net loss $ (722,478) $ (1,773,303) $ (13,237,545) $ (4,241,082)
Net loss per share - basic (in Dollars per share) $ (0.01) $ (0.04) $ (0.27) $ (0.10)
Weighted average shares outstanding – basic (in Shares) 58,650,456 41,172,560 49,867,454 40,806,423

Source

v3.3.0.814
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss $ (13,237,545) $ (4,241,082)
Adjustments to reconcile net loss to net cash (used) from operating activities:    
Stock issued for services 137,550 483,812
Stock issued for compensation 0 80,625
Stock issued as debenture interest payments 697,669 0
Depreciation and amortization 67,500 68,001
Revaluation of warrants and convertible debt 5,920,078 0
Amortization of discount on notes payable 0 154,881
Amortization of discount on convertible debentures 1,848,407 377,503
Change in fair value of derivative liability 2,193,898 0
Allowance for bad debts (4,500) 4,978
Change in operating assets and liabilities:    
Accounts receivable 428 (8,175)
Prepaid loan costs 349,260 (303,949)
Prepaid expenses 15,270 149,549
Deposits on inventory 0 89,984
Inventory 108,064 (1,177,463)
Rent and security deposits 0 (11,180)
Accounts payable and accrued expenses 360,636 (39,382)
Deferred revenue 10,031 1,175
Accrued interest (261,643) 148,855
Net cash (used) by operating activities (1,794,897) (4,221,868)
Cash flows from investing activities:    
Purchase of property and equipment (18,223) (105,756)
Net cash (used) by investing activities (18,223) (105,756)
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 83,983 25,000
Proceeds from bank line of credit 0 900,000
Proceeds from convertible senior secured debentures 740,000 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 1,401,133 5,876,067
Net increase (decrease) in cash and cash equivalents (411,987) 1,548,443
Cash and cash equivalents, beginning of period 491,988 305,649
Cash and cash equivalents, end of period 80,001 1,854,092
Supplemental cash flow information:    
Interest paid in cash $ 0 $ 86,638
Number of shares issued for interest (in Shares) 6,230,113 0
Loan fees incurred in conjunction with warrants granted to placement agent in convertible debenture offering $ 1,477 $ 185,874
Discount on notes payable 36,767 1,698,766
Amount of debt converted 357,500 0
Discount recognized on debentures payable 220,125 0
Income taxes paid 0 0
Stock Issued for Interest on Debentures [Member]    
Supplemental cash flow information:    
Stock issued $ 697,669 $ 0
Number is shares issued on conversion of debt (in Shares) 4,766,666 0
Stock Issued for Services [Member]    
Supplemental cash flow information:    
Stock issued $ 137,550 $ 483,812
Number of shares issued for services (in Shares) 465,000 1,023,519
Stock Issued for Compensation [Member]    
Supplemental cash flow information:    
Stock issued $ 0 $ 80,625
Number of shares issued for compensation (in Shares) 0 159,375

Source