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 ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities    
Net income/(loss) $ 7,796,372 $ (15,828,587)
Adjustments to reconcile net loss to net cash:    
Depreciation and amortization 14,991 64,691
Provisions and allowances 70,000
Loss on sale of rights and assets 178,032
Gain on sale of interest in subsidiary (630,571)
Charges from escrow deposits 240,400
Inventory valuation reserve 354,939
Change in fair value of derivative liability (18,819,893) (3,053,071)
Change in fair value of warrant liability (997,121)
Amortization of debt discount 2,613,227 6,049,639
Financing costs 3,060,579 2,299,632
Stock based compensation 644,523 4,292,209
Changes in operating assets and liabilities    
Accounts receivable 8,031 8,774
Inventory 48,523 228,634
Deposits in escrow (10,000) 20,076
Prepaid insurance (42,094) (338,875)
Prepaid expenses and other current assets (196,852) (185,916)
Deferred costs 105,172
Accounts payables 3,445,251 1,659,988
Accrued interest payable 394,217 165,657
Other accrued expenses (101,115) (488,135)
Accrued expenses directors (3,556)
Accrued settlement and severance expenses (309,390) 1,004,486
Accrued legal contingencies 227,313
Customer deposits (311,000)
Deferred revenue (132,841) (51,304)
Deferred costs (299,018)
Net cash used in operating activities (2,637,202) (4,166,781)
Cash flows from investing activities    
Issuance of note receivable (10,000)
Proceeds from the sale of subsidiary 35,000
Proceeds received for sale of interest held in subsidiary 630,571
Proceeds received for sale of rights and assets 91,814
Construction in Progress (529,091)
Net cash provided by investing activities 218,294
Cash flows from financing activities    
Payments on notes payable (223,347) (12,434)
Proceeds from issuance of notes payable 569,000
Proceeds from issuance of/(payments on) notes payable, related party 41,667 (150,000)
Payments on related party notes payable (2,500)
Exercise of employee stock options 16,000
Proceeds from issuance of convertible notes payable, net of fees 1,815,811 4,642,300
Proceeds from issuance of convertible notes payable from directors, net 105,000 150,000
Net cash provided by financing activities 2,321,631 4,629,866
Net decrease in cash and cash equivalents (97,277) 463,085
Cash and cash equivalents, beginning of period 119,010 101,182
Cash and cash equivalents, end of period 21,733 564,267
Supplemental disclosures of cash flow information:    
Cash paid for interest 38,595 1,151
Cash paid for income tax
Non- cash investing and financing activities:    
Common stock issued upon debt conversion 5,118,247 5,810,512
Common stock issued to consultants 96,015 364,728
Issuance of note payable for financing costs 700,000
Issuance of convertible debentures for accounts payable 500,000
Notes Payable issued for accounts payable $ 250,700