Annual report pursuant to Section 13 and 15(d)

Summary of Significant Policies (Tables)

Summary of Significant Policies (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Revenues and Accounts Receivable

The following tables set forth our revenues and accounts receivable balances for the periods indicated:

	For the Year Ended					For the Transitional Three Months Ended					For the Year Ended
	December 31, 2016					December 31, 2015					September 30, 2015
Revenues	$		%			$		%			$		%
Customer C		164,987		1	%		41,664		1	%		5,196,380		36	%
Customer D		-		-	%		1,592,193		52	%		5,324,866		37	%
Customer I		91,000		1	%		316,931		11	%		106,850		1	%
Customer J		1,804,760		14	%		-		-			-		-
Customer M		6,332,966		52	%		130,771		4	%		552,054		4	%
All other customers		3,875,366		32	%		989,246		32	%		3,208,532		22	%
Total Revenues, net of discounts	$	12,269,079		100	%	$	3,070,805		100	%	$	14,388,682		100	%

	For the Year Ended						For the Transitional Three Months Ended						For the Year Ended
	December 31, 2016						December 31, 2015						September 30, 2015
Accounts Receivable	$			%			$			%			$			%
Customer B		85,112			1	%		152,475			10	%		152,475			12	%
Customer E		603,663			9	%		718,035			47	%		617,825			47	%
Customer H		102,796			2	%		215,609			14	%		50,767			4	%
Customer M		4,624,600			66	%		62,233			4	%		66,832			5	%
All other customers		1,722,354			22	%		387,128			25	%		416,546			32	%
Total Receivables		7,138,525			100	%	$	1,535,480			100	%	$	1,304,445			100	%
Less Allowance for doubtful accounts		(118,949	)				$	(89,000	)				$	(89,000	)
Accounts Receivable, net of allowance		7,019,576					$	1,446,480					$	1,215,445

Schedule of Property, Plant and Equipment Estimated Useful Lives

Property and equipment are stated at the lower of cost or fair value. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets, as follows:

			Estimated Life
Machinery and equipment			6-8 years
Vehicles and trailers			7-10 years
Computer equipment and software			2-5 years
Product hardware and development			5-7 years

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted earnings (loss) per common share from continuing operations:

	For the Years/Three Months Ended
	Year Ended December 31, 2016			Three Months Ended December 31, 2015			Year Ended September 30, 2015
Numerator:
Net (loss) income	$	(6,234,434	)	$	546,171		$	(3,554,914	)
Preferred stock dividends		(79,561	)		(19,891	)		(79,561	)
Net (loss) income attributable to common shareholders	$	(6,313,995	)		526,280		$	(3,634,475	)
Denominator:
Weighted average number of common shares outstanding - basic		64,770,155			2,319,311			2,127,222

Effect of dilutive securities:
Convertible preferred stock, Series A		-			-			-
Convertible preferred stock, Series A-1		-			-			-
Convertible preferred stock, Series D		-			91,062			-
Convertible preferred stock, Series F		-			303,163			-
Total dilutive shares		-			394,163			-
Weighted average number of common shares outstanding - diluted		64,770,155			2,713,474			2,127,222
(Loss) Earnings per share:
Basic	$	(0.10	)	$	0.23		$	(1.71	)
Diluted	$	(0.10	)	$	0.19		$	(1.71	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	For the Years and Transitional Three Months Ended
	Year Ended December 31, 2016		Transitional Three Months December 31, 2015		Year Ended September 30, 2015
Convertible preferred stock, Series A		667,169		667,169		667,169
Convertible preferred stock, Series A-1		393,645		393,645		393,645
Convertible preferred stock, Series D ^[1]		-		40,060,500		36,615,180
Convertible preferred stock, Series F ^[1]		-		18,349,220		-
Common stock warrants		16,748,126		4,404,376		744,999
Preferred stock warrants		-		-		39,396,800
Convertible debt		-		200,000		200,000
Total potentially dilutive shares		17,808,940		64,074,910		78,017,793

[1] The Series D and Series F preferred shares are mandatorily convertible at a rate of 400 shares of common stock for each share of preferred stock upon (a) a sufficient increase in the authorized common shares; and (b) a reverse split of the common shares. These shares mandatorily converted to common stock with the reverse split and increase in authorized common shares effective May 26, 2016. All shares have been adjusted to reflect the effect of the reverse split.