Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net Loss $ (33,182,807) $ (27,985,521) $ (9,406,875)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:      
(Gain) Loss on Fair Market Valuation of Derivatives 3,494,550 1,844,500 (1,800,100)
(Gain) Loss on Fair Market Valuation of Contingent Consideration 4,426,047 (668,694)
Gain on Settlement of Contingent Consideration (4,991,571)
Impairment of Property 138,037
Impairment of Intangibles 757,467
Loss on Extinguishment of Debt 7,144,288 5,382,813 619,444
Amortization of Debt Discount 2,138,762 1,414,202 696,180
Interest income capitalized to notes receivable (49,911)
Deferred Tax Expense (Benefit) (145,900) 44,000
Depreciation and Amortization 3,647,216 2,536,413 645,294
Warrants Issued with Common Stock and Debt 211,534 467,066 1,148,069
Stock Issued for Compensation 1,526,286 3,177,659 680,630
Stock Issued for Director Fees 221,973 334,424
Stock Issued for Services 1,284,562 2,406,061 1,010,112
Stock Option Compensation 692,971 190,355
Equity Instruments Issued with Debt Greater than Debt Carrying Value 1,487,500 561,000
Change in Allowance for Doubtful Accounts (168,619) 153,660
Changes in Operating Assets and Liabilities:      
Accounts Receivable (211,906) 162,671 (478,041)
Inventory (3,736,910) (797,596) (279,268)
Prepaid Expenses and Other Current Assets 1,572,532 (32,274) (65,030)
Other Assets (3,999,489) (133) 50
Accounts Payable and Accrued Expenses 3,662,710 65,530 1,164,308
Income Taxes Payable (615,830) (254,100)
NET CASH USED IN OPERATING ACTIVITIES (15,869,489) (10,583,643) (5,306,567)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash Assumed in Black Oak Acquisition 163,566
Cash Paid for Acquisition, Net of Cash Acquired (4,113,779)
Issuance of Note Receivable (4,960,232)
Purchase of Property, Equipment and Leasehold Improvements (6,194,438) (4,316,094) (1,851,045)
Purchase of Intangible Assets Trade Names (75,000)
NET CASH USED IN INVESTING ACTIVITIES (15,268,449) (4,227,528) (1,851,045)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from Issuance of Notes Payable 20,000,000 17,479,335 2,150,000
Payments on Notes Payable (1,000,000)
Cash Paid for Debt Discount (614,600)
Proceeds from Issuance of Common Stock, Warrants and Common Stock Subscribed 9,450,000 4,058,134 3,975,888
Proceeds from Exercise of Warrants 3,150,000
Payment of Contingent Consideration (2,088,000)
Cash Contribution from Non-Controlling Interest 86,548 455,192 603,156
NET CASH PROVIDED BY FINANCING ACTIVITIES 26,833,948 24,142,661 6,729,044
NET CHANGE IN CASH (4,303,990) 9,331,490 (428,568)
Cash at Beginning of Period 9,749,572 418,082 846,650
CASH AT END OF PERIOD 5,445,582 9,749,572 418,082
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:      
Cash Paid for Interest 13,500 4,500
Cash Paid for Income Taxes 268,375 400,000
Warrant Expense 467,066 1,148,069
NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Settlement of Contingent Consideration 4,739,638
Purchase of land and building with a mortgage 4,500,000    
Gain on Settlement of Contingent Consideration Recorded Against Additional Paid-In Capital 4,692,697
Fair Value of Debt Discount Recorded 13,073,400
Issuance of Common Stock for Debt and Interest Expense 29,785,271 13,558,388 5,773,320
Fair Value of Shares Issued for Tech Center Drive Asset Acquisition 2,726,146
Issuance of Common Stock for Prepaid Inventory 1,935,500
Warrants Issued for Debt Discount 478,008
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 $ 1,830,925