Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (18,980,250) $ (15,277,922)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
(Gain) Loss on Fair Market Valuation of Derivatives (1,122,050) 595,700
Loss on Fair Market Valuation of Contingent Consideration 4,426,047  
Gain on Settlement of Contingent Consideration (See Note 10) (4,991,571)  
Impairment of Property 138,037
Loss on Extinguishment of Debt 4,052,133 920,797
Amortization of Debt Discount 1,616,338 922,621
Depreciation and Amortization 2,687,994 1,653,791
Warrants Issued with Common Stock and Debt 211,534
Stock Issued for Compensation 1,526,286 715,039
Stock Issued for Director Fees 221,973 60,550
Stock Issued for Services 1,036,427 20,727
Stock Option Expense 439,599 142,766
Equity Instruments Issued with Debt Greater than Debt Carrying Value 1,355,000
Change in Allowance for Doubtful Accounts 102,253
Changes in Operating Assets and Liabilities:    
Accounts Receivable 81,486 (432,798)
Inventory (2,458,684) (1,356,365)
Prepaid Expenses and Other Current Assets (3,817,699) 434,824
Other Assets (185,611) (3,375)
Accounts Payable and Accrued Expenses 2,300,098 3,177,610
Income Taxes Payable (57,971) 1,783,731
NET CASH USED IN OPERATING ACTIVITIES (12,875,884) (5,185,051)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash Assumed in Black Oak Acquisition 163,566
Cash Paid for Acquisition, Net of Cash Acquired (See Note 4) (4,113,779)
Purchase of Property, Equipment and Leasehold Improvements (1,947,057) (3,211,064)
Purchase of Intangible Assets Trade Names (75,000)
NET CASH USED IN INVESTING ACTIVITIES (6,060,836) (3,122,498)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from Issuance of Notes Payable 11,500,000 4,928,650
Cash Paid for Debt Discount (360,000)
Proceeds from Issuance of Common Stock 6,700,000 3,208,134
Proceeds from Exercise of Warrants 3,150,000
Payment of Contingent Consideration (See Note 10) 2,088,000
Cash Contribution from Non-Controlling Interest 86,546
NET CASH PROVIDED BY FINANCING ACTIVITIES 15,838,546 11,286,784
NET CHANGE IN CASH (3,098,174) 2,979,235
Cash at Beginning of Period 9,749,572 418,082
CASH AT END OF PERIOD 6,651,398 3,397,317
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:    
Cash Paid for Interest 16,500
Warrant Expense 142,766
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Settlement of Contingent Consideration 4,739,638
Gain on Settlement of Contingent Consideration Recorded Against Additional Paid-In Capital (See Note 10) 4,692,697
Fair Value of Debt Discount Recorded 7,881,000 2,824,000
Issuance of Common Stock for Debt and Interest Expense (See Note 9) 12,321,309 961,740
Fair Value of Shares Issued for Acquisition (See Note 4) 2,726,146
Fair Value of Shares Issued for Production Operating Agreement (See Note 14) 1,935,500
Warrants Issued for Debt Discount 169,225
Conversion of Series B Preferred Stock to Common Stock 33,146
Reclass of Non-Controlling Interest to Additional Paid-In Capital for the Acquisition of Additional Interest in Subsidiary (See Note 1) $ 1,830,925