Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,554,630) $ (2,437,209)
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation expense 71,029 16,534
Shares issued for services 642,872 1,399,127
Amortization of debt discount 6,583 414,370
Interest expense relating to amortization of capital lease discount 25,524 0
Interest expense on redemmable preferred stock on intial issuance 0 0
Change in derivative liabilities 168,164 (264,051)
Changes in operating assets and liabilities:    
Accounts receivable (73,213) 6,011
Inventory (18,766) (295,864)
Prepaid expenses and other current assets 0 (4,694)
Accounts payable 197,933 170,837
Accounts payable - related party (43,036) (18,403)
Accrued expenses 10,563 14,936
Accrued interest 0 (19,829)
Net cash used in operating activities (566,977) (1,018,235)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of fixed assets (2,850) (17,435)
Proceeds from sale lease back 0 208,773
Equipment Deposits - related party (24,998) (711,500)
Net cash used in investing activities (27,848) (520,162)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from notes payable 250,000 0
Proceeds from convertible notes payable 50,000 0
Proceeds from revolving financing (34,005) 46,138
Proceeds from sale of common stock, net 480,800 2,361,999
Repayment of capital lease (48,128) (5,204)
Repayment of redeemable preferred shares 0 (247,170)
Net cash provided by financing activities 698,667 2,155,763
NET CHANGE IN CASH 103,842 617,366
CASH AT BEGINNING OF PERIOD 90,113 2,665
CASH AT END OF PERIOD 193,955 620,031
SUPPLEMENTAL INFORMATION:    
Interest paid 30,167 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Preferred stock conversion to common stock 0 252,830
Deferred discount on conversion of preferred stock 0 56,098
Fair value of derivate liability at isuance of Warrants $ 0 $ 240,023