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Consolidated Statements of Cash Flows
12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
CASH FLOW FROM OPERATING ACTIVITIES:    
Net loss $ (4,275,338) $ (4,189,704)
Adjustments to reconcile net loss to cash used for operating activities:    
Provision for losses on accounts receivable 500,000 500,000
Depreciation 52,709 49,038
Amortization of Intangible assets 13,726 13,606
Amortization of Software license rights 1,510,051 21,589
Share and warrant-based compensation for employees and consultants 940,734 260,842
Gain on derivative liabilities (12,085)
Stock based fees to Directors and consultants 32,030 167,000
Change in assets and liabilities:    
Accounts receivable (1,002,700) (241,841)
Due from factor (56,227) (16,217)
Inventory (481,419) (296,783)
Software license rights 74,552
Prepaid expenses and other (33,472) (109,474)
Accounts payable 32,388 (691,713)
Accrued liabilities 352,700 (157,745)
Deferred revenue (125,196) 256,657
Net cash used for operating activities (2,465,462) (4,446,830)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Patents (60,698)
Capital expenditures (166,060) (52,975)
Net cash used for investing activities (226,758) (52,975)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Preferred dividends paid (535,100)
Proceeds from issuances of common stock 2,000,000 1,860,000
Stock issuance costs (80,366) (84,866)
Net cash provided by financing activities 1,919,634 1,240,034
NET DECREASE IN CASH AND CASH EQUIVALENTS (772,586) (3,259,771)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,061,307 4,321,078
CASH AND CASH EQUIVALENTS, END OF YEAR 288,721 1,061,307
Cash paid for:    
Interest
Noncash investing and financing activities:    
Accrual of unpaid preferred dividends 630,408 401,250
Conversion of Dividends Payable, Amount Converted 540,000
Conversion of A-1 preferred stock to common stock 2,740,400
Reclassification of derivative liability to additional paid-in capital 92,199
Issuance of common stock as a commitment fee for the Equity facility 198,000
Issuance of common stock as consulting services for the Equity facility $ 244,084