Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED BALANCE SHEETS

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Current assets    
Cash and cash equivalents $ 477,948 $ 1,083,280
Accounts receivable 1,369,356 1,150,602
Inventory 2,700,692 2,715,913
Prepaid expenses and other assets 135,798 161,813
Total current assets 4,683,794 5,111,608
Property and Equipment, net 1,933,574 1,243,450
License, net $ 57,354 58,825
Prepaid expenses and other assets 4,058
Customer acquisition costs $ 1,004,737 897,428
Total assets 7,679,459 7,315,369
Current liabilities    
Accounts payable and accrued expenses 1,924,859 1,235,162
Deferred revenue 2,140,200 2,281,760
Convertible notes payable 3,321,037 2,497,114
Current portion of equipment notes payable 27,928 20,979
Customer credits 936,500 936,500
Total current liabilities 8,350,524 6,971,515
Convertible notes payable, net of discount 3,241,110 3,175,085
Warrant liability 7,641,000 9,854,400
Accrued interest 75,875 169,202
Equipment notes payable 124,546 90,165
Total liabilities $ 19,433,055 $ 20,260,367
Stockholders' deficit    
Preferred stock, $.001 par value: 2,000,000 shares authorized
Common stock; $.001 par value; 150,000,000 shares authorized; 47,358,618 shares issued and outstanding as of March 31, 2016 47,194,118 shares issued and outstanding as of December 31, 2015 $ 47,359 $ 47,194
Additional paid-in capital 25,290,959 25,008,016
Accumulated deficit (37,091,914) (38,000,208)
Total stockholders' deficit (11,753,596) (12,944,998)
Total liabilities and stockholders' deficit $ 7,679,459 $ 7,315,369