XML 18 R6.htm IDEA: XBRL DOCUMENT v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES:    
Net loss $ (4,189,704) $ (1,857,306)
Adjustments to reconcile net loss to cash used for operating activities:    
Allowance for doubtful accounts 500,000 (6,741)
Depreciation 49,038 42,996
Intangible assets 13,606 13,606
Software license rights 21,589
Debt discount 92,199
Share and warrant-based compensation for employees and consultants 260,842 324,115
Gain on derivative liabilities (12,085) (31,142)
Stock based fees to Directors and consultants 167,000 17,000
Change in assets and liabilities:    
Accounts receivable (241,841) (2,759,323)
Due from factor (16,217) 39,236
Inventory (296,783) (336,820)
Software license rights (12,000,000)
Prepaid expenses and other (109,474) 139,226
Accounts payable (691,713) 811,244
Accrued liabilities (157,745) 4,450
Deferred revenue 256,657 (52,828)
Net cash used for operating activities (4,446,830) (15,560,088)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (52,975) (3,364)
Net cash used for investing activities (52,975) (3,364)
CASH FLOW FROM FINANCING ACTIVITIES:    
Preferred dividends paid (535,100)
Proceeds from issuances of preferred stock 19,500,000
Proceeds from issuances of common stock 1,860,000
Proceeds from issuance of note payable 250,000
Repayment of note payable (250,000)
Costs to issue preferred and common stock and note payable (84,866) (459,102)
Net cash provided by financing activities 1,240,034 19,040,898
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,259,771) 3,477,446
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 4,321,078 843,632
CASH AND CASH EQUIVALENTS, END OF YEAR 1,061,307 4,321,078
Cash paid for:    
Interest 100,000
Noncash investing and financing activities:    
Reclassification of derivative liability to additional paid-in capital 92,199
Issuance of warrants for financing raise 92,199
Accrual of dividends $ 401,250 $ 133,851