Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENT OF CASH FLOWS

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CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net loss $ (3,423,600) $ (726,000)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Provision for doubtful accounts receivable (17,100) 187,600
Depreciation and amortization [1] 715,400 494,600
Stock-based compensation expense 307,800 994,400
Gain on extinguishment of debt (45,400) $ (24,400)
Amortization of debt discount 1,700
Changes in operating assets and liabilities:    
Accounts receivable 1,736,000 $ (2,035,400)
Costs in Excess of billings on uncompleted contracts (142,900) 17,400
Sale of CoronaLuxTM units 780,500  
Prepaid expenses and other assets (42,600) 57,200
Accounts payable (248,300) 169,100
Accrued liabilities (3,800) 25,900
Billings in excess of revenue on uncompleted contracts 279,400 138,200
Deferred revenue $ (35,500) 456,600
Customer deposits 262,000
Payroll taxes payable $ 22,800 (23,700)
Net cash used in operating activities (115,600) (6,500)
Cash flows from investing activities:    
Purchase of property and equipment (455,000) (3,405,800)
Purchase of intangible assets (399,200) (79,900)
Net cash used in investing activities $ (854,200) (3,485,700)
Cash flows from financing activities:    
Proceeds from collection of stock subscription receivable 25,000
Principle payments of notes and capital lease obligations $ (424,100) (215,600)
Payments of related party notes payable and accrued interest (42,000) $ (63,100)
Proceeds from issuance of convertible debt $ 1,250,000
Proceeds from the sale of common stock and warrants, net of expenses $ 1,519,800
Net cash provided by financing activities $ 783,900 1,266,100
Net increase (decrease) in cash (185,900) (2,226,100)
Cash at the beginning of year 443,000 2,669,100
Cash at the end of year 257,100 443,000
Supplemental disclosures of cash flow information:    
Cash paid for interest 44,100 75,800
Supplemental disclosure of noncash financing and investing activities:    
Purchase of assets under capital leases 214,400 $ 86,700
Purchase of assets under notes payable 325,000  
Financing of insurance premiums 273,900  
Conversion of debt and accrued interest to equity 257,400  
Discount on convertible debt $ 18,300  
[1] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.