Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (14,648,061) $ (6,791,257)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
(Gain) Loss on Fair Market Valuation of Derivatives 595,700 (1,779,600)
Loss on Extinguishment of Debt 920,797 263,950
Amortization of Debt Discount 922,621 524,161
Depreciation and Amortization 1,653,791 481,321
Warrants Issued With Common Stock and Debt 1,148,069
Stock Issued for Compensation 715,039 680,630
Stock Issued for Director Fees 60,550
Stock Issued for Services 20,727 656,186
Stock Option Expense 142,766
Equity Instruments Issued With Debt Greater Than Debt Carrying Amount 1,355,000 561,000
Change in Accounts Receivable Reserve 102,253 169,683
Changes in Operating Assets and Liabilities:    
Accounts Receivable (432,798) (440,850)
Prepaid Expenses 434,824 (1,073)
Inventory (1,356,365) 5,793
Deposits (3,375) (23,072)
Accounts Payable and Accrued Expenses 3,177,610 1,138,463
Income Tax Payable 1,783,731
Net Cash Used in Operations (4,555,190) (3,406,596)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash Assumed in Acquisition 163,566
Purchase of Property and Equipment (3,211,064) (590,219)
Purchase of Intangible Assets - Trademarks (75,000)
Net Cash Used in Investing Activities (3,122,498) (590,219)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from Issuance of Notes Payable 4,928,650 1,650,000
Proceeds from Issuance of Common Stock 3,208,134 3,012,234
Proceeds from Exercise of Warrants 3,150,000
Payments By Subsidiaries for Non-Controlling Interest (629,861) (144,433)
Net Cash Provided by Financing Activities 10,656,923 4,517,801
NET CHANGE IN CASH AND CASH EQUIVALENTS 2,979,235 520,986
Cash and Cash Equivalents at Beginning of Period 418,082 846,650
CASH AND CASH EQUIVALENTS AT END OF PERIOD 3,397,317 1,367,636
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:    
Cash Paid for Interest 16,500
SUPPLEMENTAL DISCLOSURE FOR FINANCING ACTIVITIES:    
Warrant Expense $ 142,766 $ 1,148,069