Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net loss $ (16,501,889) $ (6,367,297)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 81,055 64,611
Impairment of assets 13,126 9,224
Common stock issued in exchange for services 366,150 1,413,002
Change in fair value of derivative liability 1,013,901
Derivative expense 2,464,439
Loss on settlement of accrued payroll 5,691,993
Loss on settlement of vendor liabilities 392,360
Stock based compensation 232,271 517,063
Interest expense related to amortization of debt issuance costs and debt discount 1,602,635 419,798
Changes in assets and liabilities:    
Accounts receivable (17,149) (10,702)
Inventory 296,740 (451,973)
Prepaid expenses and other assets 26,533 (108,568)
Accounts payable and accrued liabilities 3,513,462 169,533
Customer deposits 7,300 (120,404)
Current portion leases payable (2,014)
Net cash used in operating activities (819,087) (4,465,713)
Cash flows from investing activities:    
Purchases of property & equipment (196,589)
Net cash used in investing activities (196,589)
Cash flows from financing activities    
Proceeds from note payable - related party 160,000 175,000
Repayment of note payable - related party (135,000)
Proceeds from the issuance of convertible preferred stock, net of issuance costs 3,632,869
Proceeds from the issuance of convertible notes payable, net of issuance costs 521,622 250,000
Proceeds from issuance of asset based loans, net of issuance costs 300,000
Repayments on asset based loans (133,012)
Proceeds from issuance of common stock from exercise of stock options 2,667
Net cash provided by financing activities 713,610 4,060,536
Net decrease in cash (105,477) (601,766)
Cash, beginning of period 143,680 745,446
Cash, end of period 38,203 143,680
Supplemental cash flow information:    
Interest paid 44,200
Supplemental disclosure of non-cash investing and financing activities:    
Settlement of debt with convertible note 1,836,127
Derivative cease to exist upon conversion of notes 4,321,380
Debt discount recorded on convertible debt and warrants 2,207,842
Conversion of convertible notes payable to preferred stock 2,070,072
Fair value of preferred stock warrants issued with preferred stock 1,667,148
Reclassification of warrant liability to additional paid-in capital 1,943,672
Common stock assumed in connection with merger 1,991
Conversion of convertible preferred stock to common stock 7,904
Issuance of common stock in exchange for services provided in the prior year 327,100
Par value adjustment in connection with the merger $ 47,827