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 ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities    
Net loss $ (16,636,341) $ (7,123,012)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Stock based compensation 967,562 611,173
Amortization of license fees 4,410 4,412
Amortization of discount of notes payable 1,282,283 3,607,645
Amortization of debt issuance costs 500,002 504,090
Amortization of customer acquisition costs 322,605 189,101
Depreciation expense 314,906 75,000
Loss (gain) on change in value of warrant liability 14,241,139 (1,461,324)
Debt conversion costs 1,096,000 1,123,380
PIK interest 607,401 766,518
Change in assets and liabilities    
(Increase) in accounts receivable (4,280,516) (701,992)
Decrease in inventory 1,949,996 191,099
(Increase) decrease in prepaid expenses and other assets (20,129) 29,909
Increase in accounts payable and accrued liabilities 4,240,791 55,381
(Decrease) in deferred revenue (2,281,760) (465,901)
Net cash provided by (used in) operating activities 2,308,349 (2,594,521)
Cash flows used in investing activities    
Purchase of property and equipment (1,347,836) (704,831)
Net cash used in investing activities (1,347,836) (704,831)
Cash flows from financing activities    
Payments of convertible promissory notes (3,000,000)
Proceeds from the issuance of common stock upon warrant exercise 26,357
Payment of equipment notes payable (22,346)
Net cash used in financing activities 4,011 (3,000,000)
Net increase (decrease) in cash and cash equivalents 964,524 (6,299,352)
Cash and cash equivalents - beginning of period 1,083,280 7,212,114
Cash and cash equivalents - end of period 2,047,804 912,762
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid during the period for - Interest 279,293 10,134
Cash paid during the period for - State Taxes 23,727 35,930
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Equipment purchases included in note payable 103,428 57,007
Stock Issued for interest on notes payable 103,635 161,580
Conversion of debt and accrued interest to equity 3,331,817
Conversion of accounts receivable to customer acquisition costs 188,225
Conversion of accrued interest to debt $ 719,733 $ 1,104,349