Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows used in operating activities:    
Net loss $ (11,167,000) $ (10,026,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of debt discount and deferred financing fees 5,246,000 3,149,000
Loss on debt conversion 53,000 108,000
Loss on extinguishment of convertible senior secured notes 262,000
Gain on change in fair value of derivative liability (4,094,000)
Depreciation and amortization 424,000 528,000
Loss on asset disposal 137,000
Stock issued for services 21,000
Stock-based compensation 883,000 1,327,000
Loss on modification of convertible notes 1,429,000
Impairment of fixed assets 318,000
Changes in assets and liabilities:    
Accounts and other receivables 17,000 69,000
Inventory (423,000) (2,017,000)
Prepaid expenses and other current assets (126,000) 213,000
Deposits and other long term assets (4,000)
Deferred revenue 1,450,000 949,000
Restricted cash 50,000 150,000
Accounts payable and accrued expenses 922,000 (1,000)
Net cash used in operating activities (2,517,000) (7,636,000)
Cash flows provided by (used in) investing activities:    
Proceeds from sale of assets 84,000
Purchase of property and equipment (4,000) (659,000)
Net cash provided by (used in) investing activities 80,000 (659,000)
Cash flows from financing activities:    
Proceeds from convertible unsecured notes payable 1,250,000
Proceeds from convertible senior secured notes payable 1,400,000 3,372,000
Offering costs - convertible notes payable (51,000) (479,000)
Repayment of capital leases payable (14,000) (26,000)
Proceeds from issuance of common stock 2,883,000
Net cash provided by financing activities 1,335,000 7,000,000
Net decrease in cash and cash equivalents (1,102,000) (1,295,000)
Cash and cash equivalents at beginning of period 1,310,000 2,605,000
Cash and cash equivalents at end of period 208,000 1,310,000
Cash paid during the period for:    
Income taxes 3,000
Interest 257,000 802,000
Supplemental disclosure of non-cash activities:    
Equipment purchased under capital leases 25,000 13,000
Debt discount recorded upon issuance of notes with detachable warrants 305,000 1,497,000
Original issue discount recorded for convertible senior secured notes 156,000 930,000
Debt discount and derivative liabilities recorded for amendments of warrants 148,000
Conversion of senior convertible notes into shares of common stock 60,000 111,000
Issuance of shares of common stock for services 21,000
Reclassification of warrants and conversion feature previously recorded as derivative liabilities to paid-in capital 1,762,000
Debt discount and derivative liabilities recorded upon issuance of convertible unsecured notes payable 282,000
Debt discount recorded for detachable warrants issued with convertible unsecured notes payable 73,000 576,000
Debt discount recorded for amendments of warrants 236,000
Warrants issued for backstop security amendment 26,000
Warrants modified for backstop security amendment 30,000
Allocated value of conversion feature associated with convertible senior secured notes 3,495,000
Allocated value of warrants issued with convertible senior secured notes $ 4,133,000