XML 18 R6.htm IDEA: XBRL DOCUMENT v3.5.0.2
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating expenses:    
Net loss $ (2,743,116) $ (1,537,315)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 3,728 3,978
Amortization of debt issuance costs 20,815 59,574
Accretion of discount on convertible debentures 416,833 718,640
Default penalty on convertible debentures 1,247,310
Interest income on short-term investment (22) (24)
Change in fair value of financial instruments (646,671) (1,386,469)
Stock-based compensation 192,776 294,067
Bad debts expense 36,099
Loss on extinguishment of debt 1,104,179
Return of unvested consultant stock (45,000)
Changes in operating assets and liabilities:    
Accounts receivable 79,898 44,487
Inventory 40,789 (164,918)
Prepaid expenses and other current assets 7,717 7,776
Accounts payable and accrued expenses (237,903) 22,064
Accounts payable and accrued expenses - subject to compromise 120,325
Accrued interest, related party - subject to compromise 6,468 8,197
Accrued interest 173,147 (9,458)
Related party accounts payable and accrued expenses - subject to compromise 237,670 (112,377)
Billings in excess of costs and estimated earnings on uncompleted contracts 24,524 (20,849)
Deferred revenue (132,897) (76,338)
Net cash used in operating activities (1,188,609) (1,053,687)
Cash flows from investing activities    
Short-term investment 9,418
Security deposit 12,000 (3,900)
Purchase of equipment (3,068)
Net cash provided by (used in) investing activities 21,418 (6,968)
Cash flows from financing activities:    
Expenditures on debt issuance costs (40,763)
Proceeds from exercise of common stock options 22,500
Proceeds from issuance of convertible debentures and warrants 150,000 1,760,858
Proceeds from debtor in possession financing 600,000
Principal payments of convertible debentures- (392,000)
Net cash provided by financing activities 750,000 1,350,595
Net increase (decrease) in cash (417,191) 289,940
Cash and cash equivalents - beginning of year 884,188 594,248
Cash and cash equivalents - end of year 466,997 884,188
Cash paid during the year/period for:    
Interest 79,914 209,966
Supplemental disclosure of non-cash financing activities:    
In connection with the issuance of convertible debentures, $40,000 was paid for accrued interest and $24,142 was paid for debt issuance costs.
Issuance of common stock for settlement of debt $ 25,000