Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Cash flows from operating activities      
Net income (loss) $ 908,294 $ (6,567,532)  
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Stock based compensation 179,473 125,528  
Amortization of license fees 1,471 1,471  
Amortization of discount of notes payable 425,870 2,782,346  
Amortization of debt issuance costs 167,510 169,664  
Amortization of customer acquisition costs 80,916 49,117  
Depreciation expense 81,537 15,000  
Gain (loss) on the change in value of warrant liability (3,309,400) $ 1,878,550  
Noncash debt issuance costs 1,096,000  
PIK interest 231,001 $ 535,690  
Change in assets and liabilities      
Increase in accounts receivable (406,979) (827,394)  
Decrease (increase) in inventory 15,221 (1,291,453)  
Decrease (increase) in prepaid expenses and other assets 30,073 (13,447)  
Increase in accounts payable and accrued liabilities 760,410 70,070  
Increase (decrease) in deferred revenue (141,560) 1,386,950  
Net cash provided by (used in) operating activities 119,837 (1,685,440)  
Cash flows used in investing activities      
Purchase of property and equipment (725,169) (512,717)  
Net cash used in investing activities $ (725,169) (512,717)  
Cash flows from financing activities      
Payments of convertible promissory notes (3,000,000)  
Net cash used in financing activities (3,000,000)  
Net decrease in cash and cash equivalents $ (605,332) (5,198,157)  
Cash and cash equivalents - beginning of period 1,083,280 7,212,114 $ 7,212,114
Cash and cash equivalents - end of period 477,948 2,013,957 $ 1,083,280
SUPPLEMENTAL CASH FLOW INFORMATION:      
Cash paid during the period for - Interest $ 47,887 256  
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS      
Equipment purchases included in accounts payable 108,133  
Conversion of debt and accrued interest to equity 42,684  
Issuance of common stock as payment of interest on convertible notes payable $ 103,635 104,005  
Conversion of accrued interest to debt 65,567 $ 535,690  
Conversion of accounts receivable to customer acquisition costs 188,225  
Equipment purchases included in note payable $ 46,492