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, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net loss $ (4,639,900) $ (3,423,600)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Provision for doubtful accounts receivable 54,000 (17,100)
Depreciation and amortization [1] 785,000 715,400
Stock-based compensation expense 91,500 307,800
Gain on extinguishment of debt   (45,400)
Gain on disposition of asset (25,600)  
Amortization of debt discount 97,100 1,700
Impairment of assets 1,529,000  
Changes in operating assets and liabilities:    
Accounts receivable (884,600) 1,736,000
Costs in Excess of billings on uncompleted contracts 190,400 (142,900)
Sale of CoronaLux units   780,500
Prepaid expenses and other assets 288,700 (42,600)
Accounts payable 1,387,500 (248,300)
Accrued liabilities   (3,800)
Billings in excess of revenue on uncompleted contracts 502,900 279,400
Deferred revenue 800 (35,500)
Payroll taxes payable 22,800 22,800
Net cash used in operating activities (600,400) (115,600)
Cash flows from investing activities:    
Purchase of property and equipment (163,700) (455,000)
Insurance proceeds 59,000  
Purchase of intangible assets (45,100) (399,200)
Net cash used in investing activities (149,800) (854,200)
Cash flows from financing activities:    
Principal payments of notes and capital lease obligations (863,600) (424,100)
Payments of related party notes payable and accrued interest (20,000) (42,000)
Proceeds from issuance of convertible and short-term debt 1,155,000 1,250,000
Proceeds from the sale of common stock and warrants, net of expenses 454,900  
Net cash provided by financing activities 726,300 783,900
Net decrease in cash (23,900) (185,900)
Cash at the beginning of year 257,100 443,000
Cash at the end of year 233,200 257,100
Supplemental disclosures of cash flow information:    
Cash paid for interest 257,500 44,100
Supplemental disclosure of noncash financing and investing activities:    
Purchase of assets under capital leases   214,400
Purchase of assets under notes payable   325,000
Financing of insurance premiums 278,600 273,900
Conversion of debt and accrued interest to equity   257,400
Discount on convertible debt 97,100 $ 18,300
Offset accounts receivable with note payable $ 68,000  
[1] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.