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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flow from operating activities:    
Net loss $ (10,599,186) $ (14,142,655)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 964,257 781,232
Amortization of identifiable intangible assets 0 59,250
Amortization of debt discounts 1,970,382 2,055,894
Change in fair value of derivative liabilities (1,877,000) (18,142,504)
Change in fair value of 10% convertible preferred stock warrants (52,599) (243,474)
Change in allowance for doubtful accounts 58,418 74,025
Interest expense paid in shares of common stock 693,585 1,069,537
Share-based compensation 1,105,854 666,601
Fair value of common stock issued in excess of fair value of warrants tendered 0 19,957,800
Impairment of intangible assets 0 545,750
Changes in operating assets and liability:    
Accounts receivable (70,006) (274,369)
Inventories 1,992,587 (569,735)
Prepaid expenses and deposits 166,801 74,928
Accounts payable 418,718 (38,237)
Accrued liabilities 1,328,316 675,695
Customer deposits 98,050 0
Net cash used in operating activities (3,801,823) (7,450,262)
Cash flows from investing activities:    
Purchase of property and equipment (945,482) (1,105,716)
Net cash used in investing activities (945,482) (1,105,716)
Cash flows from financing activities:    
Proceeds from 12% revolving credit facility 300,000 0
Proceeds from 12% convertible promissory notes   1,000,000
Proceeds from 5% bank term loan   4,000,000
Repayments of other debt (65,709) (84,053)
Net cash provided by financing activities 4,678,955 10,443,898
Net (decrease) increase in cash (68,350) 1,887,920
Cash and cash equivalents at beginning of period 221,437 883,936
Cash and cash equivalents at end of period 153,087 2,771,856
Supplemental disclosures of cash flow information:    
Cash paid for interest 580,061 221,824
Non-cash investing and financing activities:    
Dividends on 10% convertible preferred stock 424,364 496,229
Conversion of 10% convertible preferred stock 0 116,250
Amortization of 10% convertible preferred stock discount 0 221,386
Fair value of warrants issued with 8% convertible promissory notes 0 391,365
Fair value of conversion option of 8% convertible promissory notes 0 4,544,139
Fair value of common stock issued in exchange for warrants tendered and cancelled 0 24,824,069
8% Convertible promissory note    
Cash flows from financing activities:    
Proceeds from convertible debt 0 5,527,951
12% convertible promissory note    
Cash flows from financing activities:    
Proceeds from convertible debt $ 4,444,664 $ 0