Financials

v3.5.0.2
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current assets:    
Cash and cash equivalents $ 620,000 $ 2,605,000
Restricted cash 50,000 200,000
Accounts receivable 57,000
Inventory 2,538,000 747,000
Prepaid expenses and other current assets 484,000 408,000
Total current assets 3,749,000 3,960,000
Property and equipment, net 3,372,000 3,426,000
Intangibles, net 22,000 28,000
Deposits and other long term assets 28,000 143,000
Total assets 7,171,000 7,557,000
Current liabilities:    
Accounts payable 2,147,000 1,629,000
Accrued expenses 710,000 657,000
Deferred revenues and customer advances 3,796,000 2,847,000
Accrued contract loss 600,000 600,000
Derivative liabilities 1,023,000 2,510,000
Convertible secured notes payable, net of discounts 4,519,000 4,110,000
Junior notes payable, net of discounts 725,000
Capital leases payable 20,000 26,000
Total current liabilities 13,540,000 12,379,000
Long term liabilities:    
Deposits 8,000
Capital leases payable 14,000
Total liabilities 13,540,000 12,401,000
Commitments and contingencies (Note 12)
Stockholders' equity (deficit):    
Preferred stock, $0.0001 par value. Authorized 50,000,000 shares; no shares issued and outstanding at September 30, 2016 and December 31, 2015
Common stock, $0.0001 par value. Authorized 200,000,000 shares; 3,785,216 and 3,089,160 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively
Additional paid-in capital 32,408,000 26,302,000
Accumulated deficit (38,777,000) (31,146,000)
Total stockholders' equity (deficit) (6,369,000) (4,844,000)
Total liabilities and stockholders' equity (deficit) $ 7,171,000 $ 7,557,000

Source

v3.5.0.2
Condensed 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]        
Revenues
Cost of goods sold:
Gross profit
Operating expenses:        
Selling, general, and administrative 941,000 1,165,000 3,255,000 3,475,000
Research and development 1,170,000 928,000 2,871,000 2,636,000
Total operating expenses 2,111,000 2,093,000 6,126,000 6,111,000
Operating loss (2,111,000) (2,093,000) (6,126,000) (6,111,000)
Other income (expenses):        
Interest expense (246,000) (150,000) (985,000) (257,000)
Amortization of debt discount (809,000) (1,117,000) (2,209,000) (1,921,000)
Loss on exchange of warrants (279,000)
Loss on modification of convertible debt (1,429,000)
Gain (loss) on valuation of derivative liabilities 1,570,000 50,000 3,124,000 (33,000)
Total other income (expenses), net 515,000 (1,217,000) (1,499,000) (2,490,000)
Loss before provision for income taxes (1,596,000) (3,310,000) (7,625,000) (8,601,000)
Provision for income taxes 3,000
Net loss $ (1,596,000) $ (3,310,000) $ (7,628,000) $ (8,601,000)
Loss per share - basic and diluted $ (0.42) $ (1.34) $ (2.12) $ (3.61)
Weighted average common shares - basic and diluted 3,785,216 2,464,100 3,591,233 2,385,500

Source

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows used in operating activities:    
Net loss $ (7,628,000) $ (8,601,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 398,000 276,000
Impairment of fixed assets 318,000
Amortization of debt discount and deferred financing fees 2,483,000 1,921,000
(Gain) loss on revaluation of derivative liabilities (3,124,000) 33,000
Stock-based compensation 1,027,000 1,113,000
Loss on modification of convertible debt 1,429,000
Loss on exchange of warrants for common stock 279,000
Changes in assets and liabilities:    
Accounts and other receivables (57,000) 3,000
Restricted cash 150,000 (275,000)
Inventory (1,791,000) (80,000)
Prepaid expenses and other current assets (136,000) (36,000)
Deferred revenue 949,000 808,000
Accounts payable and other current liabilities 559,000 13,000
Net cash used in operating activities (5,423,000) (4,546,000)
Cash flows used in investing activities:    
Purchases of property and equipment (655,000) (1,830,000)
Net cash used in investing activities (655,000) (1,830,000)
Cash flows from financing activities:    
Proceeds from issuance of common stock, net 2,883,000 741,000
Proceeds from note payable, net 1,230,000 4,669,000
Repayment of capital leases payable (20,000) (13,000)
Net cash provided by financing activities 4,093,000 5,397,000
Net increase (decrease) in cash and cash equivalents (1,985,000) (979,000)
Cash and cash equivalents at beginning of period 2,605,000 2,176,000
Cash and cash equivalents at end of period 620,000 1,197,000
Cash paid during the period for:    
Income taxes
Interest 639,000 205,000
Supplemental disclosure of non-cash activities:    
Capital leases for purchase of equipment 2,000 10,000
Debt discount and derivative liabilities recorded upon issuance of warrants and convertible secured notes 2,750,000
Common stock issued in exchange for warrant cancellation 885,000
Debt discount and derivative liabilities recorded for amendments of notes 1,497,000
Debt discount and derivative liabilities recorded for amendments of warrants 148,000
Reclassification of warrants previously recorded as derivative liabilities to paid in capital 1,719,000
Debt discount recorded for amendments of warrants 206,000
Debt discount and derivative liabilities recorded upon issuance convertible Junior notes 282,000
Debt discount recorded for detachable warrants issued with Junior notes $ 271,000

Source