• Filing Date: 2015-04-09
  • Form Type: 10-K
  • Description: Annual report
v2.4.1.9
Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Cash Flows from Operating Activities:    
Net Loss $ (2,278,177)us-gaap_NetIncomeLoss $ (4,148,088)us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to net cash used in Operating activities:    
Depreciation and amortization 56,446us-gaap_DepreciationAndAmortization 51,663us-gaap_DepreciationAndAmortization
Amortization of discounts and deferred financing costs 141,869us-gaap_AdjustmentForAmortization 854,149us-gaap_AdjustmentForAmortization
Bad debt expense 20,273us-gaap_ProvisionForDoubtfulAccounts 24,917us-gaap_ProvisionForDoubtfulAccounts
Inventory obsolescence 83,420us-gaap_InventoryWriteDown 244,540us-gaap_InventoryWriteDown
Gain on settlement of liabilities 0us-gaap_GainsLossesOnExtinguishmentOfDebt (192,142)us-gaap_GainsLossesOnExtinguishmentOfDebt
Series D preferred stock issued for services 311,536fil_SeriesDIssuedForServices 925,787fil_SeriesDIssuedForServices
Common stock issued for services 222,550us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims 275,927us-gaap_IssuanceOfStockAndWarrantsForServicesOrClaims
Common stock issued for loan extensions 0fil_CommonStockIssuedForLoanExtensions 16,612fil_CommonStockIssuedForLoanExtensions
Warrant expense 0us-gaap_AdjustmentOfWarrantsGrantedForServices 287,599us-gaap_AdjustmentOfWarrantsGrantedForServices
True-up related to warrants issued in 2011 0fil_TrueupRelatedToWarrantsIssuedIn2011 489,614fil_TrueupRelatedToWarrantsIssuedIn2011
Recognition of deferred compensation related to vested options 0fil_RecognitionOfDeferredCompensationRelatedToVestedOptions 86,350fil_RecognitionOfDeferredCompensationRelatedToVestedOptions
Gain on fair market value of derivative liabilities (78,145)us-gaap_DerivativeGainLossOnDerivativeNet (365,496)us-gaap_DerivativeGainLossOnDerivativeNet
Convertible debt issued for settlements 0fil_ConvertibleDebtIssuedForSettlements 90,000fil_ConvertibleDebtIssuedForSettlements
Changes in assets and liabilities:    
(Increase) decrease in accounts receivable (76,985)us-gaap_IncreaseDecreaseInAccountsReceivable (42,499)us-gaap_IncreaseDecreaseInAccountsReceivable
(Increase) decrease in inventory (178,448)us-gaap_IncreaseDecreaseInInventories (97,831)us-gaap_IncreaseDecreaseInInventories
(Increase) decrease in employee advances 3,620us-gaap_IncreaseDecreaseInDueFromEmployeeCurrent 8,212us-gaap_IncreaseDecreaseInDueFromEmployeeCurrent
(Increase) decrease in accrued interest receivable 0fil_IncreaseDecreaseInAccruedInterestReceivable 0fil_IncreaseDecreaseInAccruedInterestReceivable
(Increase) decrease in prepaids and other assets 69,908us-gaap_IncreaseDecreaseInPrepaidExpense (64,897)us-gaap_IncreaseDecreaseInPrepaidExpense
Increase (decrease) in allowance for uncollectible interest 0fil_IncreaseDecreaseInAllowanceForUncollectibleInterest 0fil_IncreaseDecreaseInAllowanceForUncollectibleInterest
Increase (decrease) in accrued royalties and dividends (50,714)us-gaap_IncreaseDecreaseInRoyaltiesPayable (428,238)us-gaap_IncreaseDecreaseInRoyaltiesPayable
Increase (decrease) in accounts payable 18,100us-gaap_IncreaseDecreaseInAccountsPayable (67,965)us-gaap_IncreaseDecreaseInAccountsPayable
Increase (decrease) in accrued liabilities (260)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities (21,838)us-gaap_IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
Increase (decrease) in accrued interest payable 48,322us-gaap_IncreaseDecreaseInInterestPayableNet 251,643us-gaap_IncreaseDecreaseInInterestPayableNet
Net cash flows used in operating activities (1,686,685)us-gaap_NetCashProvidedByUsedInOperatingActivities (1,821,981)us-gaap_NetCashProvidedByUsedInOperatingActivities
Cash flows from investing activities:    
Payments made on capital lease obligation (375)us-gaap_RepaymentsOfLongTermCapitalLeaseObligations 0us-gaap_RepaymentsOfLongTermCapitalLeaseObligations
Purchase of property and equipment (8,072)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (29,892)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Net cash flows used in investing activities (8,447)us-gaap_NetCashProvidedByUsedInInvestingActivities (29,892)us-gaap_NetCashProvidedByUsedInInvestingActivities
Cash flows from financing activities:    
Borrowings on debt 0us-gaap_ProceedsFromOtherDebt 290,244us-gaap_ProceedsFromOtherDebt
Payments on debt (23,600)us-gaap_RepaymentsOfOtherDebt (662,169)us-gaap_RepaymentsOfOtherDebt
Borrowings on convertible debt, net of original issue discounts 0us-gaap_ProceedsFromConvertibleDebt 1,817,400us-gaap_ProceedsFromConvertibleDebt
Payments on convertible debt (44,900)us-gaap_RepaymentsOfConvertibleDebt (331,500)us-gaap_RepaymentsOfConvertibleDebt
Cash paid for debt issuance costs 0us-gaap_PaymentsOfDebtIssuanceCosts (9,200)us-gaap_PaymentsOfDebtIssuanceCosts
Cash proceeds from sale of series C preferred stock 2,252,510fil_CashProceedsFromSaleOfSeriesCStock 740,030fil_CashProceedsFromSaleOfSeriesCStock
Proceeds from exercise of warrants 0us-gaap_ProceedsFromWarrantExercises 5,760us-gaap_ProceedsFromWarrantExercises
Cash paid for return of Series D preferred stock (9,990)fil_CashPaidForReturnOfSeriesDPreferredStock 0fil_CashPaidForReturnOfSeriesDPreferredStock
Net cash flows provided by financing activities 2,174,020us-gaap_NetCashProvidedByUsedInFinancingActivities 1,850,565us-gaap_NetCashProvidedByUsedInFinancingActivities
Net increase (decrease) in cash 478,888us-gaap_CashPeriodIncreaseDecrease (1,308)us-gaap_CashPeriodIncreaseDecrease
Cash and cash equivalents, beginning of period 44,553us-gaap_Cash 45,861us-gaap_Cash
Cash and cash equivalents, end of period 523,441us-gaap_Cash 44,553us-gaap_Cash
Cash paid during the period for:    
Interest 103,705us-gaap_InterestPaidNet 130,147us-gaap_InterestPaidNet
Income Taxes 0us-gaap_IncomeTaxesPaid 0us-gaap_IncomeTaxesPaid
Supplemental non-cash investing and financing activities:    
Common stock issued for conversion of debt and interest 93,728fil_CommonStockIssuedForConversionOfDebtAndInterest 406,645fil_CommonStockIssuedForConversionOfDebtAndInterest
Common stock issued for conversion of series D preferred stock 40,000fil_CommonStockIssuedForConversionOfSeriesDPreferredStock 0fil_CommonStockIssuedForConversionOfSeriesDPreferredStock
Series C preferred stock issued for conversion of related party debt and interest 0fil_SeriesCPreferredStockIssuedForConversionOfRelatedPartyDebtAndInterest 348,600fil_SeriesCPreferredStockIssuedForConversionOfRelatedPartyDebtAndInterest
Series C preferred stock issued for conversion of debt and interest 0fil_SeriesCPreferredStockIssuedForConversionOfDebtAndInterest 1,587,600fil_SeriesCPreferredStockIssuedForConversionOfDebtAndInterest
Resolution of derivative liabilities due to warrant exercise 0fil_ResolutionOfDerivativeLiabilitiesDueToWarrantExercise 48,630fil_ResolutionOfDerivativeLiabilitiesDueToWarrantExercise
Resolution of warrant derivative liabilities due to removal of convertible debt 918,580fil_ResolutionOfWarrantDerivativeLiabilitiesDueToRemovalOfConvertibleDebt 0fil_ResolutionOfWarrantDerivativeLiabilitiesDueToRemovalOfConvertibleDebt
Resolution of derivative liabilities due to debt conversions 132,417fil_ResolutionOfDerivativeLiabilitiesDueToDebtConversions 1,311,702fil_ResolutionOfDerivativeLiabilitiesDueToDebtConversions
Warrants reclassed to derivative liabilities 0fil_WarrantsReclassedToDerivativeLiabilities 812,705fil_WarrantsReclassedToDerivativeLiabilities
Debt discounts due to derivative liabilities 90,000fil_DebtDiscountsDueToDerivativeLiabilities 617,399fil_DebtDiscountsDueToDerivativeLiabilities
Debt discounts due to warrants issued with debt 0fil_DebtDiscountsDueToWarrantsIssuedWithDebt 51,643fil_DebtDiscountsDueToWarrantsIssuedWithDebt
Debt discounts due to beneficial conversion feature 0fil_DebtDiscountsDueToBeneficialConversionFeature 25,000fil_DebtDiscountsDueToBeneficialConversionFeature
Reversal of deferred compensation due to forfeiture of nonvested options 0fil_ReversalOfDeferredCompensationDueToForfeitureOfNonvestedOptions 184,800fil_ReversalOfDeferredCompensationDueToForfeitureOfNonvestedOptions
Write-off of deferred compensation 0fil_WriteoffOfDeferredCompensation 38,300fil_WriteoffOfDeferredCompensation
Reclass of related party debt to unrelated party debt 115,620fil_ReclassOfRelatedPartyDebtToUnrelatedPartyDebt 0fil_ReclassOfRelatedPartyDebtToUnrelatedPartyDebt
Reclass of related party interest payable to unrelated party interest payable 47,061fil_ReclassOfRelatedPartyInterestPayableToUnrelatedPartyInterestPayable 0fil_ReclassOfRelatedPartyInterestPayableToUnrelatedPartyInterestPayable
Capital lease obligation $ 13,512fil_CapitalLeaseObligation $ 0fil_CapitalLeaseObligation