Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
Cash flows from operating activities          
Net income (loss) $ (8,242,813) $ 599,365 $ (7,334,518) $ (5,968,167)  
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:          
Stock based compensation     582,577 331,189  
Amortization of license fees     2,942 2,942  
Amortization of discount of notes payable     851,735 3,192,741  
Amortization of debt issuance costs     334,392 338,102  
Amortization of customer acquisition costs     201,758 119,109  
Depreciation expense     187,895 43,000  
Loss (gain) on change in value of warrant liability     4,256,600 (1,316,729)  
Noncash debt issuance costs     1,096,000  
Debt conversion costs 961,843 961,843  
PIK interest     467,892 539,994  
Change in assets and liabilities          
Increase in accounts receivable     (3,077,407) (252,942)  
Decrease (increase) in inventory     1,838,146 (597,173)  
(Increase) decrease in prepaid expenses and other assets     (1,977) 11,645  
Increase (decrease) in accounts payable and accrued liabilities     3,292,440 (226,830)  
(Decrease) increase in deferred revenue     (2,241,928) 227,549  
Net cash provided by (used in) operating activities     456,547 (2,593,727)  
Cash flows used in investing activities          
Purchase of property and equipment     (907,898) (660,324)  
Net cash used in investing activities     (907,898) (660,324)  
Cash flows from financing activities          
Payments of convertible promissory notes     (3,000,000)  
Payment of equipment notes payable     (12,865)  
Net cash used in financing activities     (12,865) (3,000,000)  
Net decrease in cash and cash equivalents     (464,216) (6,254,051)  
Cash and cash equivalents - beginning of period     1,083,280 7,212,114 $ 7,212,114
Cash and cash equivalents - end of period $ 619,064 $ 958,063 619,064 958,063 $ 1,083,280
SUPPLEMENTAL CASH FLOW INFORMATION:          
Cash paid during the period for - Interest     98,007 256  
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS          
Equipment purchases included in accounts payable     57,030  
Issuance of common stock as payment of interest on convertible notes payable     103,635 104,005  
Conversion of debt and accrued interest to equity     3,574,552  
Conversion of accounts receivable to customer acquisition costs     188,225  
Equipment purchases included in note payable     $ 103,428