Quarterly report pursuant to Section 13 or 15(d)

Statement of Cash Flows (Unaudited)

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Statement of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (1,362,525) $ (2,777,518)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 35,578 35,370
Stock-based compensation 241,246 609,987
Non-cash interest expense 204,195 0
Provision for inventory obsolescence 26,062 0
Change in fair value of warrant liability (19,600) 0
Change in fair value of derivative liabilities (22,317) 0
Issuance of common stock for consulting services 13,682 95,700
Changes in operating assets and liabilities:    
Accounts receivable 0 99,786
Inventory 45,201 (62,331)
Prepaid expenses and other current assets (19,256) 24,315
Accounts payable 270,637 (75,424)
Deferred revenue 62,610 0
Accrued expenses 143,058 (72,513)
Net cash used in operating activities (381,429) (2,122,628)
Cash flows from investing activities:    
Purchase of property and equipment 0 (6,510)
Net cash used in investing activities 0 (6,510)
Cash flows from financing activities:    
Proceeds from issuance of convertible notes payable (net of issuance discounts and fees) 432,000 0
Proceeds from issuance of common stock upon option exercises 0 500
Proceeds from issuance of common stock and common stock warrants (net of issuance costs) 0 250,000
Net cash provided by financing activities 432,000 250,500
Net increase (decrease) in cash and cash equivalents 50,571 (1,878,638)
Cash and cash equivalents, beginning of period 157,278 3,387,428
Cash and cash equivalents, end of period 207,849 1,508,790
Supplemental disclosure of cash flow information:    
Cash paid during the period for: Interest 0 0
Cash paid during the period for: Income taxes 5,000 3,000
Non-cash financing activities    
Issuance of common stock for stock subscription received 0 250,000
Issuance of common stock in exchange for settlement of outstanding payables 22,179 0
Warrant liability associated with Typenex Convertible Note 146,995 0
Derivative liabilities associated with convertible notes payable $ 274,331 $ 0