Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net Loss	$ (3,970,844)	$ (1,099,355)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Amortization of deferred financing costs	397,221	109,315
Financing costs	563,300
Depreciation expense	138,012	109,581
Amortization of original issue discount	45,673	54,672
Payment in kind interest-senior debt	84,065	80,684
Stock incentive expense to investor		35,186
Stock compensation expense	214,150
Recovery of bad debts	(33,837)
Change in fair value of warrant derivative liability	2,199,700
Changes in operating assets and liabilities:
Accounts receivable	(2,931,459)	(1,254,109)
Other current assets	(484,117)	(474,177)
Due to related party	90,388
Accounts payable and accrued liabilities	273,902	349,883
Net cash (used in) operating activities	(3,413,846)	(2,088,320)
Cash flows from investing activities:
Purchases of property and equipment	(971,618)	(14,619)
Restricted cash account		2,252,522
Net cash (used in) provided by investing activities	(971,618)	2,237,903
Cash flows from financing activities:
Proceeds from issuance of notes payable	2,946,945
Payments on notes payable	(344,763)	(263,838)
Proceeds from issuance of notes payable-related parties		96,080
Payments on notes payable-related parties		(32,325)
Payment of deferred financing costs	(260,000)
Proceeds for shares to be issued	615,000
Net proceeds from sale of common stock	19,000
Net cash provided by (used in) financing activities	2,976,182	(200,083)
Net change in cash	(1,409,282)	(50,500)
Cash, beginning of period	1,411,612	205,133
Cash, end of period	2,330	154,633
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	734,224	459,592
Non-cash financing activities:
Notes payable issued to finance equipment purchases		164,780
Common stock shares issued for notes payable and other debt	38,639
Issuance of notes to settle accrued litigation	12,535	146,000
Issuance of notes to settle accounts payable		123,148
Accrued dividends, preferred stock	19,891	19,890
Preferred shares issued investor incentive		533
Common shares issued to senior lender	2,568,008
Common shares issued to employees under employment agreement for future services	3,043,642
Common shares issued to consultants	$ 331,619