Financials

v3.8.0.1
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 194,000 $ 1,310,000
Restricted cash 50,000
Accounts receivable 216,000 87,000
Inventory 3,093,000 2,764,000
Prepaid expenses and other current assets 188,000 302,000
Total current assets 3,691,000 4,513,000
Property and equipment, net 2,744,000 3,247,000
Intangibles, net 15,000 20,000
Deposits and other long-term assets 44,000 28,000
Total assets 6,494,000 7,808,000
Current liabilities:    
Accounts payable 1,511,000 1,575,000
Accrued expenses 1,373,000 663,000
Deferred revenues and customer advances 5,427,000 3,876,000
Accrued contract loss 760,000 724,000
Convertible unsecured notes payable, net of discounts 1,250,000 554,000
Capital leases payable-short term 15,000 10,000
Total current liabilities 10,336,000 7,402,000
Long term liabilities:    
Convertible secured notes payable, net of discounts 4,186,000 630,000
Capital lease payable 15,000 4,000
Total liabilities 14,537,000 8,036,000
Commitments and contingencies (Note 14)
Stockholders' deficit:    
Preferred stock, $0.0001 par value. Authorized 50,000,000 shares; no shares issued and outstanding at September 30, 2017 and December 31, 2016
Common stock, $0.0001 par value. Authorized 200,000,000 shares; 4,063,660 and 3,829,660 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
Additional paid-in capital 42,025,000 40,944,000
Accumulated deficit (50,068,000) (41,172,000)
Total stockholders' (deficit) (8,043,000) (228,000)
Total liabilities and stockholders' deficit $ 6,494,000 $ 7,808,000

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]        
Revenues
Cost of goods sold
Gross profit
Operating expenses:        
Selling, general, and administrative 650,000 941,000 2,686,000 3,255,000
Research and development 452,000 1,170,000 1,634,000 2,871,000
Total operating expenses 1,102,000 2,111,000 4,320,000 6,126,000
Operating loss (1,102,000) (2,111,000) (4,320,000) (6,126,000)
Other income (expenses):        
Interest expense (77,000) (246,000) (417,000) (985,000)
Amortization of debt discount (1,256,000) (809,000) (3,969,000) (2,209,000)
Loss on disposition of assets (137,000)
Loss on debt extinguishment (10,000)
Loss on modification of convertible debt (43,000) (1,429,000)
Gain (loss) on valuation of derivative liabilities 1,570,000 3,124,000
Total other income (expenses), net (1,333,000) 515,000 (4,576,000) (1,499,000)
Loss before provision for income taxes (2,435,000) (1,596,000) (8,896,000) (7,625,000)
Provision for income taxes 3,000
Net loss $ (2,435,000) $ (1,596,000) $ (8,896,000) $ (7,628,000)
Loss per share-basic and diluted $ (0.60) $ (0.42) $ (2.21) $ (2.12)
Weighted average common shares-basic and diluted 4,063,660 3,785,216 4,026,726 3,591,233

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (8,896,000) $ (7,628,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 340,000 398,000
Impairment of fixed assets 318,000
Stock-based compensation 788,000 1,027,000
(Gain) on revaluation of derivative liabilities (3,124,000)
Amortization of debt discount and deferred financing fees 4,050,000 2,483,000
Expense related to modification of convertible debt 1,429,000
Loss on debt conversions 53,000
Loss on asset disposal 151,000
Changes in assets and liabilities:    
Restricted cash 50,000 150,000
Accounts and other receivables (99,000) (57,000)
Prepaid expenses and other current assets 56,000 (136,000)
Inventory (271,000) (1,791,000)
Deferred revenues, net 1,551,000 949,000
Deposits 5,000
Accounts payable and other current liabilities 548,000 559,000
Cash used in operating activities (1,674,000) (5,423,000)
Cash flows from investing activities:    
Purchases of property and equipment (655,000)
Proceeds from sale of assets 67,000
Net cash provided by (used in) investing activities 67,000 (655,000)
Cash flows from financing activities:    
Proceeds from issuance of common stock, net 2,883,000
Proceeds from note payable, net 500,000 1,230,000
Repayment of capital leases payable (9,000) (20,000)
Cash provided by financing activities 491,000 4,093,000
Net decrease in cash and cash equivalents (1,116,000) (1,985,000)
Cash and cash equivalents at beginning of period 1,310,000 2,605,000
Cash and cash equivalents at end of period 194,000 620,000
Cash paid during the period for:    
Income taxes
Interest 75,000 639,000
Supplemental disclosure of non-cash activities:    
Capital lease for purchase of equipment 25,000 2,000
Debt discount and derivative liabilities recorded upon issuance of notes 1,497,000
Debt discount recorded upon issuance of notes 103,000
Debt discount and derivative liabilities recorded for amendments of warrants 148,000
Conversion of senior convertible notes into common shares 60,000
Reclassification of warrants 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 of convertible Junior notes 282,000
Debt discount recorded for detachable warrants issued with notes 271,000
Debt discount recorded for issuance of warrants $ 73,000

Source