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
Mar. 31, 2015
Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (7,139,449) $ (4,229,513)
Adjustments to reconcile net income to net cash used in operating activities:    
Bad Debt expense 6,225 10,000
Depreciation expense 175,036 42,407
Interest expense converted to common stock 0 3,555
Shares issued for services 3,730,263 2,652,291
Amortization of debt discount & debt financing cost 457,518 107,532
Interest expense on redeemable preferred stock on initial issuance 0 455,926
Change in derivative liabilities (326,095) (617,939)
Changes in operating assets and liabilities:    
Accounts receivable (256,194) (161,294)
Inventory (135,390) (50,392)
Prepaid expenses and other current assets (17,500) 0
Accounts payable 244,165 307,504
Accounts payable - related party 24,633 17,913
Accrued expenses 103,836 51,201
Accrued interest (19,829) 19,829
Net cash used in operating activities (3,152,781) (1,390,980)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of fixed assets (352,169) (276,310)
Net cash used in investing activities (352,169) (276,310)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from revolving financing 159,527 83,348
Proceeds from sale of common stock, net 2,361,999 1,100,000
Proceeds from the exercise of warrants, net 1,344,630 0
Repayment of capital lease (26,588) 0
Repayment of redeemable preferred shares (247,170) 0
Proceeds from sale of mandatory redeemable preferred stock, net 0 422,000
Net cash provided by financing activities 3,592,398 1,605,348
NET CHANGE IN CASH 87,448 (61,942)
CASH AT BEGINNING OF PERIOD 2,665 64,607
CASH AT END OF PERIOD 90,113 2,665
SUPPLEMENTAL INFORMATION:    
Interest paid 46,070 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Debt converted to common stock 0 229,870
Derivative liability on redeemable preferred stock 0 422,000
Preferred stock conversion to common stock 252,830 0
Deferred discount on conversion of preferred stock 56,098 0
Fair value of derivate liability at issuance of Warrants 389,710 0
Fair value of derivative liability at exercise 150,566 0
Exercise of stock options with accounts payable 1,820 0
Capitalized lease 735,781 0
Warrant issued for deferred financing cost $ 309,028 $ 0