Financials

v3.5.0.2
CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2016
Dec. 31, 2015
ASSETS    
Cash $ 108,107 $ 135,266
Accounts receivable trade, net 39,702 156,733
Inventories 1,637,391 1,428,157
Prepaid expenses and other current assets 97,698 89,808
Total current assets 1,882,898 1,809,964
Furniture, fixtures and equipment, net 260,461 134,259
Deposits 16,086 16,086
Total assets 2,159,445 1,960,309
LIABILITIES AND STOCKHOLDERS' DEFICIT    
Accounts payable 224,957 271,566
Accrued expenses 383,205 344,094
Settlement accrual 80,000
Deferred revenue 10,667
Insurance premium finance contract 43,149 54,611
Total current liabilities 661,978 750,271
Convertible notes - related party, net of discounts 2,953,821 2,946,118
Convertible line of credit - related party, net of discounts 4,347,404 2,746,336
Total liabilities 7,963,203 6,442,725
Commitments and contingencies (Note 5)  
Stockholders' deficit    
Preferred stock: $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
Common stock: $0.001 par value; 150,000,000 shares authorized; 52,305,513 and 48,972,496 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. 52,306 48,972
Additional paid in capital 41,063,317 38,754,495
Accumulated deficit (46,919,381) (43,285,883)
Total stockholders' deficit (5,803,758) (4,482,416)
Total liabilities and stockholders' deficit $ 2,159,445 $ 1,960,309
v3.5.0.2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Statement [Abstract]        
Sales $ 217,437 $ 536,456 $ 920,741 $ 1,070,059
Cost of goods sold 71,131 178,100 282,266 432,471
Gross profit 146,306 358,356 638,475 637,588
Operating expenses:        
Selling, general and administrative expenses 1,069,781 1,153,432 3,249,456 3,616,260
Research and development 50,765 37,794 206,228 76,533
Total operating expenses 1,120,546 1,191,226 3,455,684 3,692,793
Loss from operations (974,240) (832,870) (2,817,209) (3,055,205)
Other income (expense)        
Other income 56,956 300,000 58,856
Interest income 2 8 5
Gain (loss) on conversion of interest (72,765) 12,841
Loss on extinguishment of debt (596,648)
Loss on extension of warrants (206,620)
Loss on settlement (320,631) (412,867)
Interest expense (188,897) (113,694) (516,281) (281,990)
Total other income (expense) (188,895) (56,738) (816,289) (1,219,803)
Net loss $ (1,163,135) $ (889,608) $ (3,633,498) $ (4,275,008)
Net loss per common share - basic and diluted $ (0.02) $ (0.02) $ (0.07) $ (0.09)
Weighted average shares outstanding - basic and diluted 51,835,515 47,966,677 50,562,616 47,490,364
v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Reconciliation of net loss to net cash used in operating activities:    
Net loss $ (3,633,498) $ (4,275,008)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense (recovery) (21,875) 2,024
Depreciation 60,064 44,104
Amortization of debt discounts 107,347 50,461
Loss (gain) on conversion of interest 72,765 (12,841)
Loss on extinguishment of debt 596,648
Warrants issued for services 44,477
Common stock issued for services 12,167
Loss on extension of warrants 206,620
Employee stock option compensation expense 367,787 774,470
Changes in assets and liabilities:    
Accounts receivable 138,906 (420,552)
Inventories (209,234) (321,081)
Prepaid expenses and other current assets 46,764 68,846
Accounts payable (46,609) 62,410
Accrued expenses 412,289 187,192
Deferred revenue 10,667
Settlement accrual (9,369) 136,000
Reversal of litigation accrual (56,956)
Net cash used in operating activities (2,440,732) (3,164,283)
Cash flows from Investing Activities    
Purchases of equipment (186,266) (18,156)
Net cash used in investing activities (186,266) (18,156)
Cash flows from Financing Activities    
Proceeds from sale of stock under stock purchase agreement 610,955
Proceeds from sale of stock and warrants 250,000 150,000
Proceeds from sale of stock in private placements 114,250
Proceeds from advances on convertible line of credit with related parties 1,805,000 2,865,000
Payments on insurance finance contract (66,116) (74,089)
Net cash provided by financing activities 2,599,839 3,055,161
Net decrease in cash (27,159) (127,278)
Cash - beginning 135,266 195,615
Cash - ending 108,107 68,337
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 1,829 2,412
Cash paid for income taxes
Supplementary Disclosure of Non-cash Investing and Financing Activities:    
Beneficial conversion feature of convertible notes 151,788 242,100
Loan discount from warrants 151,788 242,100
Stock issued for vehicle 16,000
Stock issued for services 1,674
Stock issued for accrued interest 373,178 224,811
Warrants issued for settlement accrual $ 70,631