CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
|
9 Months Ended |
Sep. 30, 2016 |
Sep. 30, 2015 |
| Cash flows from operating activities |
|
|
| Net loss |
$ (4,955,000)
|
$ (5,745,000)
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Stock-based compensation |
943,000
|
283,000
|
| Amortization of deferred debt issuance costs and debt discount |
740,000
|
483,000
|
| Amortization of trademark |
98,000
|
21,000
|
| Gain on conversion of debt to common stock |
(557,000)
|
0
|
| Debt conversion expense |
0
|
898,000
|
| Provision for doubtful accounts |
153,000
|
160,000
|
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
(437,000)
|
1,942,000
|
| Inventories |
(1,156,000)
|
1,406,000
|
| Prepaid expenses and other |
(299,000)
|
(141,000)
|
| Other assets |
0
|
28,000
|
| Accounts payable |
(633,000)
|
(202,000)
|
| Accrued expenses |
(124,000)
|
(959,000)
|
| Customer refund |
(10,000)
|
1,843,000
|
| Due to related parties |
0
|
(59,000)
|
| Net cash used in operating activities |
(6,237,000)
|
(42,000)
|
| Cash flows from financing activities |
|
|
| Proceeds from issuance of preferred stock, net |
2,393,000
|
0
|
| Private placement offering |
0
|
2,969,000
|
| Private placement issuance costs |
0
|
(414,000)
|
| Short-term loan - related party, net |
0
|
(51,000)
|
| Proceeds from issuance of IPO common stock and warrants |
8,151,000
|
0
|
| IPO costs |
(689,000)
|
0
|
| Payments on bridge financing |
(462,000)
|
0
|
| Proceeds from issuance of bridge financing |
406,000
|
0
|
| Proceeds from issuance of convertible debt and warrants |
0
|
1,645,000
|
| Proceeds from credit facility |
581,000
|
6,969,000
|
| Payments on credit facility |
(785,000)
|
(10,782,000)
|
| Payments on trademark note payable |
(450,000)
|
0
|
| Deferred financing costs |
(57,000)
|
(337,000)
|
| Net cash (used in) provided by financing activities |
9,088,000
|
(1,000)
|
| Net (decrease) increase in cash |
2,851,000
|
(43,000)
|
| Cash, beginning of the period |
119,000
|
97,000
|
| Cash, end of the period |
2,970,000
|
54,000
|
| Cash paid during the period for: |
|
|
| Interest |
55,000
|
221,000
|
| Non-cash investing and financing activities: |
|
|
| Reclassification of deferred IPO costs |
619,000
|
0
|
| Deferred IPO costs |
0
|
218,000
|
| Stock purchase warrants issued with debt |
0
|
335,000
|
| Issuance of common stock in connection with trademark purchase |
0
|
2,103,000
|
| Exchange of debt for equity |
0
|
2,272,000
|
| IPO [Member] |
|
|
| Non-cash investing and financing activities: |
|
|
| Exchange of debt for equity |
$ 3,520,000
|
$ 0
|