Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash Flows from Operating Activities:    
Net income (loss) $ 4,811,884 $ (551,504)
Less: Net income from discontinued operations (590,657) (1,252,112)
Gain on sale of discontinued operations (6,384,871) 0
Net loss from continuing operations (2,163,644) (1,803,616)
Adjustments to reconcile net income (loss) from continuing operations to cash used in operating activities of continuing operations:    
Stock-based compensation expense 318,202 7,501
Stock issued to directors as compensation 72,000 0
Amortization of deferred financing costs 0 9,474
Depreciation 19,789 15,984
Provision for doubtful accounts, net of recoveries 72,396 (61)
Changes in operating assets and liabilities:    
Accounts receivable (140,141) (277,286)
Inventories 74,559 (70,843)
Prepaid expenses and other current assets (182,864) (63,342)
Deposits and other long term assets (17,130) 23,871
Accounts payable (97,175) (529,004)
Accrued liabilities and expenses (76,498) 543,623
Deferred revenue 144,608 180,378
Related party payable (97,127) 0
Customer deposits 159,975 43,889
Income tax payable 139,884 0
Deferred lease liability 3,098 (1,212)
Net Cash Used In Operating Activities of Continuing Operations (1,770,068) (1,920,644)
Net Cash Provided By Operating Activities of Discontinued Operations 517,242 1,594,145
Net Cash Used In Operating Activities (1,252,826) (326,499)
Cash Flows From Investing Activities:    
Purchase of property and equipment (12,011) (2,743)
Net proceeds from sale of subsidiary 11,805,220 0
Change in restricted cash (900,000) 31,277
Net Cash Provided by Investing Activities of Continuing Operations 10,893,209 28,534
Cash Flows From Financing Activities:    
Payments on notes payable 0 (66,697)
Proceeds from exercise of warrants 0 677,501
Net payments on line of credit (1,062,129) (365,000)
Net Cash (Used in) Provided By Financing Activities of Continuing Operations (1,062,129) 245,804
Net increase (decrease) in cash and cash equivalents 8,578,254 (52,161)
Cash and cash equivalents at the beginning of the period 791,858 951,249
Cash and cash equivalents at the end of the period 9,370,112 899,088
Cash transactions:    
Cash paid during the period for interest 11,173 20,599
Cash paid during the period for income taxes, net of refunds $ 8,151 $ 9,840