Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income (loss)	$ 95,410	$ (16,636,341)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock based compensation	1,437,648	967,562
Amortization of license fees	1,950	4,410
Amortization of discount of notes payable and convertible notes payable	558,781	1,282,283
Amortization of debt issuance costs	115,144	500,002
Amortization of customer acquisition costs	307,612	322,605
Amortization of Patents	83,833
Depreciation expense	558,036	314,906
(Gain) loss on change in value of warrant liability	(919,023)	14,241,139
Settlement Expense	61,100
Debt conversion costs		1,096,000
PIK interest		607,401
Change in assets and liabilities
(Increase) in accounts receivable	(530,382)	(4,280,516)
(Increase) decrease in inventory	(196,504)	1,949,996
Decrease (increase) in prepaid expenses and other assets	24,673	(20,129)
(Decrease) increase in accounts payable and accrued liabilities	(2,323,642)	4,240,791
Decrease in deferred revenue		(2,281,760)
Decrease in customer credits	(423,206)
Net cash (used in) provided by operating activities	(1,148,570)	2,308,349
Cash flows used in investing activities
Purchase of property and equipment	(698,941)	(1,347,836)
Purchase of intellectual property	(2,500,000)
Net cash used in investing activities	(3,198,941)	(1,347,836)
Cash flows from financing activities
Payment of promissory notes	(1,000,000)
Payment of equipment notes payable	(40,318)	(22,346)
Proceeds from the issuance of common stock upon warrant exercise		26,357
Net cash (used in) provided by financing activities	(1,040,318)	4,011
Net (decrease) increase cash and cash equivalents	(5,387,829)	964,524
Cash and cash equivalents - beginning of period	7,751,557	1,083,280
Cash and cash equivalents - end of period	2,363,728	2,047,804
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for: Interest	1,011,427	279,293
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Equipment purchases included in accounts payable	1,594
Equipment purchases included in equipment notes payable	101,199	103,428
Stock issued for interest on convertible notes payable		103,635
Stock issued for the acquisition of patents rights	518,000
Stock issued for settlement	61,100
Conversion of accounts receivable to customer aquistion costs		188,225
Conversion of accrued interest to debt		719,733
Stock issued upon debt conversion	25,618
Stock issued upon cashless warrant exercise	$ 230,977