XML 24 R6.htm IDEA: XBRL DOCUMENT v3.6.0.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2016
Jun. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:          
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       6,468 8,197
Accrued interest       173,147 (9,458)
Related party accounts payable and accrued expenses       6,468 8,197
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 provided by investing activities:          
Short-term investment       9,418
Security deposit refund       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       150,000 1,760,858
Proceeds from debtor in possession financing       600,000
Principal payments of convertible debentures-       (392,000)
Net cash provided by (used in) financing activities       750,000 1,350,595
Net increase (decrease) in cash and cash equivalents       (417,191) 289,940
Cash and cash equivalents - beginning of period   $ 466,997 $ 884,188 884,188 594,248
Cash and cash equivalents - end of period       466,997 884,188
Cash paid during the 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
Successor          
Cash flows from operating activities:          
Net loss $ (543,206)        
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation expense 674        
Amortization of debt issuance costs        
Amortization of intangible assets 145,875        
Amortization of discount on convertible debentures 111,808        
Default penalty on convertible debentures        
Interest income on short-term investment (3)        
Change in fair value of financial instruments (18,345)        
Interest expense on debtor in possession financing        
Gain on reorganization        
Stock-based compensation        
Changes in operating assets and liabilities:          
Accounts receivable (88,874)        
Cost and estimated earnings in excess of billings on uncompleted contracts (25,753)        
Inventory (98,257)        
Prepaid expenses and other current assets (5,000)        
Accounts payable and accrued expenses (76,403)        
Accounts payable and accrued expenses - subject to compromise (21,197)        
Accrued interest, related party (26,500)        
Accrued interest        
Related party accounts payable and accrued expenses 45,818        
Related party accounts payable and accrued expenses - subject to compromise (113,789)        
Billings in excess of costs and estimated earnings -on uncompleted contracts 68,679        
Deferred revenue 83,587        
Net cash used in operating activities (560,886)        
Cash flows provided by investing activities:          
Security deposit refund        
Cash flows from financing activities:          
Principal payments on related party notes payable (48,500)        
Proceeds from issuance of convertible debentures        
Net cash provided by (used in) financing activities (48,500)        
Net increase (decrease) in cash and cash equivalents (609,386)        
Cash and cash equivalents - beginning of period 955,803        
Cash and cash equivalents - end of period 346,417 955,803      
Cash paid during the period for:          
Interest        
Supplemental disclosure of non-cash financing activities:          
Conversion of debtor in possession financing to convertible debentures        
Predecessor          
Cash flows from operating activities:          
Net loss   (664,737) (2,254,115)    
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation expense   1,629 2,803    
Amortization of debt issuance costs   5,204 15,611    
Amortization of intangible assets      
Amortization of discount on convertible debentures   387,965 311,625    
Default penalty on convertible debentures   1,247,310    
Interest income on short-term investment   (8) (13)    
Change in fair value of financial instruments   (646,671)    
Interest expense on debtor in possession financing   35,848    
Gain on reorganization   (713,379)    
Stock-based compensation   119,146 145,843    
Changes in operating assets and liabilities:          
Accounts receivable   (104,858) (892)    
Cost and estimated earnings in excess of billings on uncompleted contracts   (5,765)    
Inventory   118,011 184,031    
Prepaid expenses and other current assets   (28,589) 7,717    
Accounts payable and accrued expenses   269,317 (126,356)    
Accounts payable and accrued expenses - subject to compromise   (22,457)    
Accrued interest, related party   6,131    
Accrued interest   159,828    
Related party accounts payable and accrued expenses   173,494    
Related party accounts payable and accrued expenses - subject to compromise   (163,522)    
Billings in excess of costs and estimated earnings -on uncompleted contracts   14,650 14,066    
Deferred revenue   (87,115) (254,708)    
Net cash used in operating activities   (832,895) (1,020,061)    
Cash flows provided by investing activities:          
Security deposit refund   2,700 12,000    
Cash flows from financing activities:          
Principal payments on related party notes payable      
Proceeds from issuance of convertible debentures   1,319,001 150,000    
Net cash provided by (used in) financing activities   1,319,001 150,000    
Net increase (decrease) in cash and cash equivalents   488,806 (858,061)    
Cash and cash equivalents - beginning of period $ 955,803 466,997 884,188 884,188  
Cash and cash equivalents - end of period   955,803 26,127 $ 466,997 $ 884,188
Cash paid during the period for:          
Interest   79,914    
Supplemental disclosure of non-cash financing activities:          
Conversion of debtor in possession financing to convertible debentures   $ 600,000