Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Jun. 30, 2016
Jun. 30, 2015
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net Loss $ (4,934,238) $ (2,756,576) $ (9,060,302) $ (4,833,090)  
Adjustments to reconcile net loss to net cash used in operating activities:          
(Gain) loss on fair market valuation of derivatives     1,366,700 (1,407,200)  
Loss on extinguishment of debt     920,797  
Amortization of debt discount 218,126 224,729 312,532 265,855  
Depreciation and amortization     787,178 319,819  
Deferred tax expense     49,000 $ 44,000
Warrants issued with common stock and debt     1,148,069  
Stock issued for director fees     60,550  
Stock issued for services     20,727 104,166  
Stock option expense     95,177  
Equity instruments issued with debt greater than debt carrying amount     488,000 561,000  
Change in accounts receivable reserve     102,253 109,906  
Changes in operating assets and liabilities:          
Accounts receivable     (369,557) (193,907)  
Prepaid expenses     257,238 (36,735)  
Inventory     (472,970) 114,436  
Deposits     (40,468)  
Accounts payable     2,393,183 1,741,700  
Net cash used in operations     (3,049,494) (2,146,449)  
CASH FLOWS FROM INVESTING ACTIVITIES:          
Cash assumed in acquisition     163,566  
Purchase of property and equipment     (1,988,587) (163,710)  
Purchase of intangible assets - trademarks     (75,000)  
Net cash used in investing activities     (1,900,021) (163,710)  
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from issuance of notes payable     3,250,000 1,650,000  
Proceeds from issuance of common stock and warrants     3,208,134 2,055,000  
Payments by subsidiaries for non-controlling interest     (255,038) (111,674)  
Net cash provided by financing activities     6,203,096 3,593,326  
NET CHANGE IN CASH AND CASH EQUIVALENTS     1,253,581 1,283,167  
CASH AND CASH EQUIVALENTS, beginning of period     418,082 846,650 846,650
CASH AND CASH EQUIVALENTS, end of period $ 1,671,663 $ 2,129,817 1,671,663 2,129,817 $ 418,082
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES          
Cash paid for interest     10,100  
Warrant expense     $ 1,148,069