Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flow

v3.8.0.1
Consolidated Statements of Cash Flow - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flow from operating activities    
Net loss $ (9,329,000) $ (14,763,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 578,000 1,435,000
Amortization of intangible assets 536,000 501,000
Amortization of lease incentive for tenant improvements 20,000 20,000
Impairment of property and equipment 852,000
Non-cash interest expense 821,000 2,904,000
Non-cash issuance of stock to settle litigation 794,000
Loss on extinguishment of debt 661,000
Stock based compensation 219,000 273,000
Change in fair value of derivative liabilities (3,118,000) (2,476,000)
Loss on extinguishment of derivative liabilities (1,000)
(Gain) loss on disposal of equipment 1,000 (27,000)
Provision for inventory reserve 4,550,000 1,161,000
Bad debt expense 41,000
Offering costs 131,000 571,000
Changes in operating assets and liabilities:    
Trade accounts receivable 339,000 1,040,000
Prepaid expenses and other current assets 48,000 (3,000)
Inventories 287,000 749,000
Accounts payable and accrued liabilities 196,000 (861,000)
Net cash used in operating activities (4,680,000) (7,170,000)
Cash flows from investing activities    
Purchase of property and equipment (1,186,000) (671,000)
Proceeds from sale of property and equipment 49,000 54,000
Net cash used in investing activities (1,137,000) (617,000)
Cash flows from financing activities    
Proceeds from issuance of common stock, net of issuance costs ($601 and $300)   2,540,000
Proceeds from issuance of preferred stock, net of issuance costs ($371) 3,622,000
Proceeds from issuance of warrant derivative liability, net of issuance costs of ($131 and $571) 679,000 5,246,000
Proceeds from issuance of stock in connection with exercise of warrants, net of issuance costs 447,000
Payments on debt (6,816,000) (6,630,000)
Debt extinguishment payments (1,728,000)
Payments for capital lease (13,000)
Deferred costs paid for debt (50,000) (267,000)
Proceeds from issuance of debt - related party 2,500,000
Net cash provided by (used in) financing activities (559,000) 3,217,000
Net decrease used in cash and cash equivalents (6,376,000) (4,570,000)
Cash and cash equivalents at beginning of period 6,915,000 11,485,000
Cash and cash equivalents at end of period $ 539,000 $ 6,915,000
Noncash investing and financing activities    
Preferred stock converted to common stock 6
Derivative liability reduced with exercise of warrants $ 274,000
Capital lease for property and equipment 60,000
Notes payable and accrued interest converted to common stock 2,679,000
Debt exchange - Riverside 3,000,000
Debt discount for Riverside note - beneficial conversion feature (BCF) and warrants 1,138,000
Deemed dividend on convertible preferred stock   6,278,000
Debt discount from warrants issued with debt 189,000
Supplemental cash flow information    
Cash paid for interest $ 442,000 $ 1,606,000