false
--12-31
Q2
2016
2016-06-30
10-Q
0001446159
81804903
Yes
Smaller Reporting Company
Skyline Medical Inc.
No
No
skln
0.0499
0.0499
0.43
P2D
10.05
10.2
15442
3333
1
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Certificates of Deposit</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Short-term interest bearing investments are those with maturities of less than one year but greater than three months when purchased. Certificates with maturity dates beyond one year are classified as noncurrent assets. These investments are readily convertible to cash and are stated at cost plus accrued interest, which approximates fair value.</div></div></div></div>
0.43
6077778
1040373
0
P4Y62D
P1Y255D
P4Y62D
P1Y255D
P1Y208D
P3Y36D
P1Y164D
P3Y40D
P3Y131D
P1Y354D
P1Y332D
P2Y229D
P2Y219D
P3Y
483478
19.50
9.75
9.75
9.75
167031
0.4
1548792
933074
1600000
1603260
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 2 – DEVELOPMENT STAGE OPERATIONS</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The Company was formed April 23, 2002. Since inception to August 3, 2016, 81,804,903 shares of common stock have been issued between par value and $125.25. Operations since incorporation have been devoted to raising capital, obtaining financing, development of the Company’s product, and administrative services, customer acceptance and sales and marketing strategies.</div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Interim Financial Statements</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company has prepared the unaudited interim financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company’s financial position, the results of its operations and its cash flows for the interim periods. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto contained in the Form 10-K filed with the SEC on March 16, 2016. The nature of the Company’s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.</div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Note 12 – INVESTMENT SECURITIES AND OTHER COMPREHENSIVE INCOME (LOSS)</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The cost and fair values of investment securities available-for-sale at June 30, 2016 were as follows: </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2016</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Description</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross <br /> Unrealized <br /> Gains</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross <br /> Unrealized <br /> Losses</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Mutual Funds</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">850,000</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">5,878</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">855,878</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div>
P5Y
P3Y
P180D
6
16
16
16
16
16
16
16
16
16
16
2609937
1335773
4797327
1616874
0
250000
P45D
10031
0.11
0.11
0.11
0.11
0.11
0.11
19.50
19.50
19.50
0.01
100
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Presentation of Taxes Collected from Customers</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Sales taxes are imposed on the Company’s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company’s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</div></div></div></div>
250000
298757
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">7</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 87%; font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 4%; font-size: 10pt; text-align: right"> </td> <td style="width: 4%; font-size: 10pt; text-align: center">5</td> <td style="width: 4%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">7</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table></div>
-8889
-89
-6578
-6667
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Risks and Uncertainties</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies.</div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: center"><div style="display: inline; font-size: 10pt; color: black"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Range of Prices</div></div></div></td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: center"><div style="display: inline; font-size: 10pt; color: black"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Shares </div></div></div></td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: center"><div style="display: inline; font-size: 10pt; color: black"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Weighted Remaining Life </div></div></div></td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: black; text-align: left"><div style="display: inline; font-size: 10pt; color: black">Options</div></td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; font-size: 10pt; color: black; text-align: left">$</td> <td style="width: 31%; font-size: 10pt; color: black; text-align: right">0.15</td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; color: black"> </td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 31%; font-size: 10pt; color: black; text-align: right">100,002</td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; color: black"> </td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 30%; font-size: 10pt; color: black; text-align: right">10.00</td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">0.17</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">88,236</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.76</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">0.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7,333</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">5.02</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">2.63</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8,559</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.32</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">2.94</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">28,913</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.51</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.10</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">58,068</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.01</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.21</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4,674</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.26</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.45</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">5,796</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8.76</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">4.875</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">134</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.70</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">5.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">2,031</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.19</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">5.925</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">23,206</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.72</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">6.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">43,998</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.13</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">6.50</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,076</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8.51</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">8.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,030</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8.26</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">9.9375</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,019</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.04</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">10.50</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,238</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.04</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">11.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">13,222</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.55</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">12.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">67</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.86</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">13.875</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,800</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.76</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">17.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7,652</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.69</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">18.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,334</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.65</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">20.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4,693</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.51</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">21.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,336</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.27</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">23.85</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,050</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: right">416,468</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; color: black; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: black; text-align: left"><div style="display: inline; font-size: 10pt; color: black">Warrants</div></td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">0.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,263,043</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4.17</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">56,381</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.70</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">4.95</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7,789,403</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4.17</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">6.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">102,857</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.70</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">9.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">2,666</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.57</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">9.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">63,232</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3.10</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">11.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">147,420</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.45</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">12.375</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">71,257</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3.11</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">12.38</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">5,557</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3.36</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">13.50</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4,444</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.97</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">14.85</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">23,612</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.91</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">20.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,481</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">2.63</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left">$</td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: right">24.375</td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; color: black; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; color: black; text-align: right">21,538</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: right">2.60</td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: right">9,552,891</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
4.95
2.63
970
1561
228343
1658527
270510
10454136
3000
57903236
8997542
2077
2283
-4360
0
-18144
16585
1559
30
9870
9900
579032
579032
89975
89975
3157186
8.28
70000
0.01
0.08
0.72
1
1
4
11.25
1.25
83333
0.05
228343
228343
4.301
555104
750473
650413
23566
38283
798921
864295
180257
144079
5878
45231599
44534135
669007
871877
871877
48649
48649
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Advertising</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Advertising costs are expensed as incurred. Advertising expenses were $42,665 and $46,662 in the three and six months ended June 30, 2016 and were $500 and $1,417 in the three and six months ended June 30, 2015.</div></div></div></div>
42665
46662
500
1417
48649
302981
219097
1878
3710
1444
2888
9969359
1133856
2894677
5632419
2677078
5397834
855878
855878
5878
850000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Nature of Operations and Continuance of Operations</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Skyline Medical Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. Effective August 6, 2013, the Company changed its name to Skyline Medical Inc. As of June 30, 2016, the registrant had 77,698,393 shares of common stock, par value $.01 per share, outstanding. Pursuant to an Agreement and Plan of Merger dated effective December 16, 2013, the Company merged with and into a Delaware corporation with the same name that was its wholly-owned subsidiary, with such Delaware Corporation as the surviving corporation of the merger. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid and filters to users of our systems. In April 2009, the Company received 510(k) clearance from the FDA to authorize the Company to market and sell its STREAMWAY® FMS products.</div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div style=" font-size: 10pt; margin: 0pt 0">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and had a stockholders’ deficit until August 31, 2015 whereupon the Company closed its public offering of units of common stock, Series B Convertible Preferred Stock and Series A Warrants (the “Units”). There remains though, substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Since inception to June 30, 2016, the Company raised approximately $22,325,091 in equity, inclusive of $2,055,000 from a private placement of Series A Convertible Preferred Stock, $13,555,003 from the public offering of Units and $5,685,000 in debt financing. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.”</div></div></div></div>
583044
4856232
16384
44103
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Cash Equivalents</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company considers all highly liquid debt instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximate fair value.</div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Note 10 – SUPPLEMENTAL CASH FLOW DATA</div></div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"></div> <div style=" font-size: 10pt; margin: 0pt 0">There were no cash payments for interest for the three and six months ended June 30, 2016 and were $441 and $10,161 for the three and six months ended June 30, 2015.</div></div>
-4273188
27719
440655
701243
12.38
4.95
24.38
20.25
11.25
12.38
12.38
12.38
24.38
12.38
0
3.75
4.95
6
9
9.75
11.25
12.375
12.38
13.50
14.85
20.25
24.375
3.75
14.85
9.75
24.375
0
9.75
0
24.375
1
10
1
37440
21538
61060711
1770556
18059671
21538
1482
5431
4831
28986
61539
37440
5431
71257
52
27051
1263043
56381
7789403
102857
2666
63232
147420
71257
5557
4444
23612
1481
21538
9552891
69801
267579
161375
9054136
0.01
0.01
0.01
0.01
0.01
0.01
100000000
100000000
100000000
81804903
77698393
5206428
776983
52063
-2558253
-1185327
-4731772
-1411122
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Credit Risk</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any one financial institution. The Company has a credit risk concentration as a result of depositing $440,655 of funds in excess of insurance limits in a single bank.</div></div></div></div>
250
2778
1
36766
83566
122649
179534
927663
2.90
2.96
2.91
2.77
2.25
2
2.27283
2.0179
1.92417
1.8578
1800000
122196
275000
5685000
1.4
1.4
5000
5000
10383000
10697000
10179000
10338000
204000
359000
10383000
10697000
9677
20795
6652
14713
1
1
0.04
0.04
42130
39021
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: left">Stock Options:</td> <td style="font-size: 10pt"> </td> <td colspan="11" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="7" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; font-size: 10pt; text-align: left">2011</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right">11,666</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: right">$0.75</td> <td style="width: 10%; font-size: 10pt; text-align: center">-</td> <td style="width: 1%; font-size: 10pt; text-align: left">11.25</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2012</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">46,029</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">5.25</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">6.00</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">40,299</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">4.875</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">23.85</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">24,225</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">6.50</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">18.75</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">106,010</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">2.63</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">3.45</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2016</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">188,238</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">0.15</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">0.17</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">416,468</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">$.15</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt"> - </div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">23.85</td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: left">Warrants:</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td colspan="7" style="font-size: 10pt; text-align: center"> </td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; padding-bottom: 1pt; text-align: left">Year</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="7" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; font-size: 10pt; text-align: left">2012</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right">69,801</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: right"></td> <td style="width: 10%; font-size: 10pt; text-align: center">11.25</td> <td style="width: 1%; font-size: 10pt; text-align: left"></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2013</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">267,579</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3.75</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">14.85</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2014</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">161,375</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">9.75</td> <td style="font-size: 10pt; text-align: center">-</td> <td style="font-size: 10pt; text-align: left">24.375</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2015</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">9,054,136</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">$0.00</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center">-<div style="display: inline; font-size: 10pt"> </div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">9.75</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt; text-align: left">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">9,552,891</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">$0.00</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">24.375</td> </tr> </table></div>
-0.04
-0.36
-0.11
-0.44
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 5 - LOSS PER SHARE</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The following table presents the shares used in the basic and diluted loss per common share computations:</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"></div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Numerator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: left">Net loss available in basic and diluted calculation</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(2,561,281</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(1,185,327</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(4,737,650</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(1,411,122</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other comprehensive income:</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Unrealized gain from marketable securities</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,028</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">5,878</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Comprehensive (loss)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(2,558,253</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(1,185,327</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(4,731,772</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(1,411,122</td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Denominator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">67,380,076</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">3,263,356</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">42,738,140</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">3,182,706</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Effect of diluted stock options, warrants and preferred stock (1)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">67,380,076</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,263,356</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">42,738,140</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,182,706</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Loss per common share-basic and diluted</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.04</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.36</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.11</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.44</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">(1) The number of shares underlying options and warrants outstanding as of June 30, 2016 and June 30, 2015 are 9,969,359 and 1,133,856 respectively. The effect of the shares that would be issued upon exercise of such options, warrants and preferred stock has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive.</div></div>
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Fair Value Measurements</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Under generally accepted accounting principles as outlined in the Financial Accounting Standards Board’s <div style="display: inline; font-style: italic;">Accounting Standards Certification</div> (ASC) 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standards ASC 820 establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing as asset or liability as follows:</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level 1 – Observable inputs such as quoted prices in active markets;</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level 2 – Inputs other than quoted prices in active markets, that are observable either directly or indirectly; and</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> Level 3 – Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.</div><div style=" font-size: 10pt; text-indent: -0.5in; margin: 0pt 0 0pt 0.5in"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company uses observable market data, when available, in making fair value measurements. Fair value measurements are classified according to the lowest level input that is significant to the valuation.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The fair value of the Company’s investment securities were determined based on Level 1 inputs.</div></div></div></div>
1562
-13102
2262481
856219
3951057
728424
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Valuation of Intangible Assets</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">We review identifiable intangible assets for impairment in accordance with ASC 350 — Intangibles —Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management’s best estimate of the related risks and return at the time the impairment assessment is made.</div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Intangible Assets</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Intangible assets consist of trademarks and patent costs. Amortization expense was $1,878 and $3,710 in the three and six months ended June 30, 2016, and was $1,444 and $2,888 in the three and six months ended June 30, 2015. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</div></div></div></div>
48656
150446
59677
205752
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 6 – INCOME TAXES</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Availability and Utilization of Net Operating Losses</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">During September 2013, the Company experienced an “ownership change” as defined in Section 382 of the Internal Revenue Code which could potentially limit the ability to utilize the Company’s net operating losses (NOLs). The general limitation rules allow the Company to utilize its NOLs subject to an annual limitation that is determined by multiplying the federal long-term tax-exempt rate by the Company’s value immediately before the ownership change.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">During the first quarter of 2016, the Company likely had another ownership change that could further limit the Company’s ability to fully utilize its NOLs however, the determination of the annual limitation has not yet been made.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Income Taxes</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">At December 31, 2015, the Company had approximately $24.7 million of gross NOLs to reduce future federal taxable income, the majority of which are expected to be available for use in 2016, subject to the Section 382 limitation described above. The federal NOLs will expire beginning in 2022 if unused. The Company also had approximately $13.4 million of gross NOLs to reduce future state taxable income at December 31, 2015, which will expire in years 2022 through 2036 if unused. The Company’s net deferred tax assets, which include the NOLs, are subject to a full valuation allowance. At December 31, 2015, the federal and state valuation allowances were $9.6 million and $1.1 million, respectively.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">At June 30, 2016, the Company had approximately $29.0 million of gross NOLs to reduce future federal taxable income, the majority of which are expected to be available for use in 2017, subject to the Section 382 limitations described above. The federal NOLs will expire beginning in 2022 if unused. The Company also had approximately $15.0 million of gross NOLs to reduce future state taxable income at June 30, 2016, which will expire in years 2022 through 2037 if unused. The Company’s net deferred tax assets, which include the NOLs, are subject to a full valuation allowance. At June 30, 2016, the federal and state valuation allowances were $10.1 million and $0.2 million, respectively.</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The components of deferred income taxes at June 30, 2016 and December 31, 2015 are as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">June 30,</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred Tax Asset:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">Net Operating Loss</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10,179,000</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10,338,000</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">204,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">359,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total Deferred Tax Asset</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">10,383,000</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">10,697,000</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less Valuation Allowance</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,383,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,697,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net Deferred Income Taxes</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">—</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">—</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Income Taxes</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company accounts for income taxes in accordance with ASC 740- Income Taxes (“ASC 740”). Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Tax years subsequent to 2012 remain open to examination by federal and state tax authorities.</div></div></div></div>
100060
279669
-14717
-41694
489730
193781
3375
60420
-109699
-50392
12576
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Patents and Intellectual Property</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">On January 25th, 2014 the Company filed a non-provisional PCT Application No. PCT/US2014/013081 claiming priority from the U.S. Provisional Patent Application, number 61756763 which was filed one year earlier on January 25th, 2013. The Patent Cooperation Treaty (“PCT”) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the 148 countries of the PCT, including the United States. By filing this single “international” patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div style=" font-size: 10pt; margin: 0pt 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: US7469727, US8123731 and U.S. Publication No. US20090216205 (collectively, the “Patents”). These Patents will begin to expire on August 8, 2023.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In July 2015, Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability. Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</div></div></div></div>
96130
94987
189215
342837
0
0
441
10161
69504
30237
292160
231740
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Inventories</div></div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"><div style="display: inline; font-weight: bold;"> </div></div><div style=" font-size: 10pt; margin: 0pt 0">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as follows:</div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">June 30,</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">69,504</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">151,108</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">71,548</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">292,160</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div></div></div>
151108
162623
71548
38880
600331
-3333
17000
33750
15823
34256
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 7 – RENT OBLIGATION</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company leases its principal office under a lease that can be cancelled after three years with proper notice per the lease and an amortized schedule of adjustments that will be due to the landlord. The lease extends five years and expires January 2018. In addition to rent, the Company pays real estate taxes and repairs and maintenance on the leased property. Rent expense was $17,000 and $33,750 for the three and six months ended June 30, 2016 and was $15,823 and $34,256 for the three and six months ended June 30, 2015 respectively.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company’s rent obligation for the next three years is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%; font-size: 10pt; text-align: left">2016</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">19,000</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2017</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">39,000</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2018</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">3,600</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table> </div></div>
2109498
1519708
2894677
5632419
1554394
1519708
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Investment Securities</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Readily marketable investments in debt and equity securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded in other comprehensive income. Unrealized gains are charged to earnings when an incline in fair value above the cost basis is determined to be other-than-temporary. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method.</div></div></div></div>
86253
250000
-1574825
-7700
-2784616
-214581
-4737650
-1411122
-2561281
-1185327
-4790530
-4790530
-4737650
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Recent Accounting Developments</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, <div style="display: inline; font-style: italic;">Revenue from Contracts with Customers </div>and created a new topic in the FASB Accounting Standards Codification ("ASC"), Topic 606. The new standard provides a single comprehensive revenue recognition framework for all entities and supersedes nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div style=" font-size: 10pt; margin: 0pt 0">In June 2014, the FASB issued ASU 2014-12, <div style="display: inline; font-style: italic;">"Compensation - Stock Compensation" </div>providing explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact this guidance may have on our financial statements.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU is not expected to have an impact on our financial statements.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring that inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective within annual periods beginning on or after December 15, 2016, including interim periods within that reporting period. We are currently evaluating the impact this guidance may have on our financial statements.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740)” providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In January 2016, the FASB issued ASU No. 2016-01, <div style="display: inline; font-style: italic;">Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities </div>("ASU 2016-01"). The standard changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not believe that the adoption of this guidance will have a material impact on the Company's consolidated financial statements and disclosures.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02, “Leases<div style="display: inline; font-style: italic;"> (Topic 842 </div>” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The standard states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In March 2016, the FASB issued ASU No. 2016-09, “<div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accountin</div>g” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements.</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</div></div></div></div>
1
2012
244840
151313
635206
172630
19000
3600
39000
24700000
13400000
29000000
15000000
9600000
1100000
10100000
200000
3028
5878
5878
4853
7700
850000
18729
1000000
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Note 9 – RETIREMENT SAVINGS PLAN</div></div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We have a pre-tax salary reduction/profit-sharing plan under the provisions of Section 401(k) of the Internal Revenue Code, which covers employees meeting certain eligibility requirements. In fiscal 2016 and 2015, we matched 100%, of the employee’s contribution up to 4% of their earnings. The employer contribution was $9,677 and $20,795 for the three and six months ending June 30, 2016 and was $6,652 and $14,713 for the three and six months ending June 30, 2015, respectively.</div></div>
0.06
0.06
0.06
0.06
0.06
0.06
9.75
9.75
9.75
19.50
20000000
0
806
18950
221187
271579
1475000
100000
250000
86253
13800000
1092
30981
17095
27604
166025
153553
25635
23874
101104
97288
8962
8962
301726
283677
121469
139598
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Property and Equipment</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">7</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 87%; font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 4%; font-size: 10pt; text-align: right"> </td> <td style="width: 4%; font-size: 10pt; text-align: center">5</td> <td style="width: 4%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">7</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table> </div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company’s investment in Fixed Assets consists of the following:</div><div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div><div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,<br /> 2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; font-weight: bold; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">166,025</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">25,635</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">101,104</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-indent: 10pt">Total</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">301,726</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">180,257</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">121,469</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,<br /> 2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; font-weight: bold; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">166,025</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">25,635</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">101,104</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-indent: 10pt">Total</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">301,726</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">180,257</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">121,469</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
P3Y
P7Y
P5Y
P3Y
P7Y
P3Y
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Receivables</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management’s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</div></div></div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 8 – RELATED PARTY TRANSACTIONS</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Audit Committee has the responsibility to review and approve all transactions to which a related party and the Company may be a party prior to their implementation, to assess whether such transactions meet applicable legal requirements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In connection with the sale of the Series A Preferred Share on February 4, 2014, Josh Kornberg, our former, and then President, CEO and Interim Chairman of the Board, was one of the Purchasers. Mr. Kornberg purchased 19,231 Preferred Shares for a purchase price of $25,000 and received warrants to purchase 52 shares of common stock.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">SOK Partners, LLC (“SOK”), a large stockholder with Mr. Kornberg and Dr. Samuel Herschkowitz as managing partners, invested in the July 2014 offering of convertible notes and warrants. In November 2014, the convertible noteholders agreed to convert certain balances of the convertible notes in connection with the public offering of the Existing Units, in consideration of the agreement to issue certain additional shares. See “Management’s Discussion and Analysis of Financial Conditions and Results of Operations – Liquidity and Capital Resources – History Financing – 2014 Sales of Convertible Notes and Warrants.” In connection with the Unit Offering in August 2015, all such convertible notes were redeemed at a redemption price of 140% of the principal amount thereof, plus accrued and unpaid interest. The Company paid approximately $163,000 to SOK in redemption of its convertible note. In addition, Rick Koenigsberger, a former director who resigned on June 5, 2015, is a holder of membership units of SOK Partners.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In connection with the Unit Exchange that was consummated on August 31, 2015, 250 shares of Series A Convertible Stock held by Mr. Kornberg were exchanged for 2,778 Exchange Units.</div></div>
163000
100234
222395
58285
120947
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Research and Development</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Research and development costs are charged to operations as incurred. Research and development expenses were $100,234 and $222,395 in the three and six months ended June 30, 2016 and were $58,285 and $120,947 in the three and six months ended June 30, 2015.</div></div></div></div>
-45230087
-40492437
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company recognizes revenue in accordance with the SEC’s Staff Accounting Bulletin Topic 13 Revenue Recognition and ASC 605-Revenue Recognition.</div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company’s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of filters and fluids. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company’s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer’s right of return is limited only to the Company’s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution or filters may be returned. Additionally, since the Company buys the STREAMWAY FMS units, cleaning solution and filters from “turnkey” suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</div></div></div></div>
85422
234012
182326
385286
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="15" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30, 2016</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Description</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cost</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross <br /> Unrealized <br /> Gains</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross <br /> Unrealized <br /> Losses</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; padding-bottom: 1pt"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="width: 1%; padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Mutual Funds</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">850,000</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">5,878</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">855,878</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">June 30,</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: right"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Deferred Tax Asset:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 74%; font-size: 10pt; text-align: left">Net Operating Loss</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10,179,000</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">10,338,000</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">204,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">359,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Total Deferred Tax Asset</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">10,383,000</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">10,697,000</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less Valuation Allowance</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,383,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">10,697,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net Deferred Income Taxes</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">—</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">—</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended June 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="7" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Six Months Ended June 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Numerator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: left">Net loss available in basic and diluted calculation</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(2,561,281</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(1,185,327</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(4,737,650</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">(1,411,122</td> <td style="width: 1%; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Other comprehensive income:</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Unrealized gain from marketable securities</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,028</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">5,878</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Comprehensive (loss)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(2,558,253</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(1,185,327</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(4,731,772</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(1,411,122</td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Denominator:</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">67,380,076</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">3,263,356</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">42,738,140</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">3,182,706</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Effect of diluted stock options, warrants and preferred stock (1)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 1pt">Weighted average common shares outstanding-basic</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">67,380,076</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,263,356</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">42,738,140</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">3,182,706</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Loss per common share-basic and diluted</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.04</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.36</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.11</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">(0.44</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">)</td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">June 30,</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">69,504</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">151,108</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">71,548</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">292,160</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 87%; font-size: 10pt; text-align: left">2016</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">19,000</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2017</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">39,000</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2018</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">3,600</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse;; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Stock Options</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Warrants</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Exercise</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Exercise</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Price</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Outstanding at December 31, 2014</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right">448,601</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">7.51</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right">500,722</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">7.95</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">354,253</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">2.76</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">7,581,722</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">4.95</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(19,136</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">11.73</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(1,967</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">11.34</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.95</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Outstanding at December 31, 2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">783,718</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">5.33</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">8,077,477</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">5.14</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">217,650</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">0.14</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">18,272,042</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">0.06</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(552,104</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">4.94</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(32,796</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.63</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(16,796,628</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at June 30, 2016</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">416,468</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">3.36</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">9,552,891</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">4.41</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Segments</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The Company operates in one segment for the sale of its medical device and consumable products. Substantially all of the Company’s assets, revenues and expenses for the three and six months ending June 30, 2016 and for 2015 in entirety were located at or derived from operations in the United States. There were no revenue from sales outside of the United States. The Company has recently attained its ISO 13485 certification and is applying to sell our products in Canada.</div></div></div></div>
102616
139026
211064
372983
48649
302981
P3Y
11.73
11.34
4.94
2.76
4.95
0.14
0.06
7.51
7.95
5.33
5.14
3.36
4.41
0
0
0
0.66
0.66
0.66
0.59
0.59
0.0144
0.0275
0.0163
0.0235
0.0149
0.0178
3000
32796
16796628
19136
1967
552104
354253
7581722
217650
18272042
552104
1000000
0.1087
0.1239
100002
88236
7333
8559
28913
58068
4674
5796
134
2031
23206
43998
3076
3030
3019
3238
13222
67
1800
7652
3334
4693
1336
1050
416468
11666
46029
40299
24225
106010
188238
448601
500722
783718
8077477
416468
9552891
0.15
0.17
0.75
2.63
2.94
3.10
3.21
3.45
4.875
5.25
5.925
6
6.50
8.25
9.9375
10.50
11.25
12.75
13.875
17.25
18.75
20.25
21.75
23.85
416468
3.36
1.25
2.63
3.2006
13.9195
0.275
5.5695
0.15
5.25
6
4.875
23.85
6.50
18.75
2.63
3.45
0.15
0.17
0.15
23.85
125.25
0.15
P3Y
P10Y
P5Y
P10Y
P5Y
P10Y
P5Y
P10Y
P10Y
P9Y277D
P5Y7D
P9Y116D
P9Y186D
P9Y3D
P9Y94D
P8Y277D
P6Y255D
P6Y69D
P6Y262D
P6Y47D
P8Y186D
P8Y94D
P7Y14D
P7Y14D
P6Y200D
P6Y313D
P7Y277D
P7Y251D
P7Y237D
P7Y186D
P7Y98D
P7Y91D
P7Y182D
9
0.15
0.18
3092766
5206428
77698393
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Shipping and Handling</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</div></div></div></div>
0
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 4 – SHORT-TERM NOTES PAYABLE</div> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">From July through September 2014, we entered into a series of securities purchase agreements pursuant to which we issued approximately $1.8 million original principal amount (subsequently reduced to approximately $1.6 million aggregate principal amount in accordance with their terms) of convertible promissory notes (the “2014 Convertible Notes”) and warrants exercisable for shares of our common stock for an aggregate purchase price of $1,475,000. Of this amount, we issued to SOK Partners, LLC, an affiliate of the Company, $122,196 original principal amount of the 2014 Convertible Notes and warrants exercisable for 5,431 shares of our common stock for an aggregate purchase price of $100,000. In April and May 2015, we issued and sold to a private investor additional Convertible Notes in an aggregate original principal amount of $275,000 for an aggregate purchase price of $250,000, containing terms substantially similar to the 2014 Convertible Notes (the “2015 Convertible Notes” and, together with the 2014 Convertible Notes, the “Convertible Notes”). No warrants were issued with the 2015 Convertible Notes.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Under a provision in the existing agreements, upon effectiveness of a resale registration statement covering certain shares, on September 9, 2014, the principal amount of the notes was reduced by 11%, to $1,603,260 and the number of Warrants was reduced by 11%, to 71,257 shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">As of June 30, 2016 $927,663 aggregate principal amount of Convertible Notes, plus accrued and unpaid interest thereto, have been converted into shares of our common stock and no aggregate principal amount of Convertible Notes remains outstanding.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; background-color: white">In connection with the Offering, the holders of the Convertible Notes agreed to not exercise their right to convert the Convertible Notes into shares of the Company’s common stock, in exchange for the Company’s agreement to redeem all of the outstanding Convertible Notes promptly following the consummation of the Offering at a redemption price equal to 140% of the principal amount, plus accrued and unpaid interest to the redemption date. On August 31, 2015, the closing date of the offering, the Company redeemed the remaining $933,074 aggregate principal amount of Convertible Notes plus interest and a 40% redeemable premium, for a total payment of $1,548,792. Of this amount, approximately $167,031 was paid to its affiliates in redemption of their Convertible Notes. Each holder of the Convertible Notes agreed to the foregoing terms and entered into an Amendment to Senior Convertible Notes and Agreement with the Company. As of June 30, 2016, none of the Convertible Notes were outstanding.</div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Nature of Operations and Continuance of Operations</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Skyline Medical Inc. (the "Company") was incorporated under the laws of the State of Minnesota in 2002. Effective August 6, 2013, the Company changed its name to Skyline Medical Inc. As of June 30, 2016, the registrant had 77,698,393 shares of common stock, par value $.01 per share, outstanding. Pursuant to an Agreement and Plan of Merger dated effective December 16, 2013, the Company merged with and into a Delaware corporation with the same name that was its wholly-owned subsidiary, with such Delaware Corporation as the surviving corporation of the merger. The Company has developed an environmentally safe system for the collection and disposal of infectious fluids that result from surgical procedures and post-operative care. The Company also makes ongoing sales of our proprietary cleaning fluid and filters to users of our systems. In April 2009, the Company received 510(k) clearance from the FDA to authorize the Company to market and sell its STREAMWAY® FMS products.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has suffered recurring losses from operations and had a stockholders’ deficit until August 31, 2015 whereupon the Company closed its public offering of units of common stock, Series B Convertible Preferred Stock and Series A Warrants (the “Units”). There remains though, substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Since inception to June 30, 2016, the Company raised approximately $22,325,091 in equity, inclusive of $2,055,000 from a private placement of Series A Convertible Preferred Stock, $13,555,003 from the public offering of Units and $5,685,000 in debt financing. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources.”</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Recent Accounting Developments</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, <div style="display: inline; font-style: italic;">Revenue from Contracts with Customers </div>and created a new topic in the FASB Accounting Standards Codification ("ASC"), Topic 606. The new standard provides a single comprehensive revenue recognition framework for all entities and supersedes nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard is designed to create greater comparability for financial statement users across industries and also requires enhanced disclosures. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In June 2014, the FASB issued ASU 2014-12, <div style="display: inline; font-style: italic;">"Compensation - Stock Compensation" </div>providing explicit guidance on how to account for share-based payments granted to employees in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. We are currently evaluating the impact this guidance may have on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. Debt issuance costs related to a recognized debt liability will be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt discounts, rather than as an asset. Amortization of these costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual and interim reporting periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU is not expected to have an impact on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, requiring that inventory be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This ASU is effective within annual periods beginning on or after December 15, 2016, including interim periods within that reporting period. We are currently evaluating the impact this guidance may have on our financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 8; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740)” providing guidance on the balance sheet classification of deferred taxes. The guidance requires that deferred tax assets and liabilities to be classified as noncurrent in the Balance Sheet. The guidance is effective for fiscal years beginning after December 15, 2016 and for interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact this guidance may have on our financial statements and related disclosures.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In January 2016, the FASB issued ASU No. 2016-01, <div style="display: inline; font-style: italic;">Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities </div>("ASU 2016-01"). The standard changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. Under the new guidance, entities will be required to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicability exception. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not believe that the adoption of this guidance will have a material impact on the Company's consolidated financial statements and disclosures.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In February 2016, the FASB issued ASU No. 2016-02, “Leases<div style="display: inline; font-style: italic;"> (Topic 842 </div>” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The standard states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In March 2016, the FASB issued ASU No. 2016-09, “<div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accountin</div>g” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We reviewed all other significant newly issued accounting pronouncements and determined they are either not applicable to our business or that no material effect is expected on our financial position and results of our operations.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Valuation of Intangible Assets</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">We review identifiable intangible assets for impairment in accordance with ASC 350 — Intangibles —Goodwill and Other, whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Our intangible assets are currently solely the costs of obtaining trademarks and patents. Events or changes in circumstances that indicate the carrying amount may not be recoverable include, but are not limited to, a significant change in the medical device marketplace and a significant adverse change in the business climate in which we operate. If such events or changes in circumstances are present, the undiscounted cash flows method is used to determine whether the intangible asset is impaired. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. If the carrying value of the asset exceeds the undiscounted cash flows over the estimated remaining life of the asset, the asset is considered impaired, and the impairment is measured by reducing the carrying value of the asset to its fair value using the discounted cash flows method. The discount rate utilized is based on management’s best estimate of the related risks and return at the time the impairment assessment is made.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Accounting Policies and Estimates</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Presentation of Taxes Collected from Customers</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Sales taxes are imposed on the Company’s sales to nonexempt customers. The Company collects the taxes from customers and remits the entire amounts to the governmental authorities. The Company’s accounting policy is to exclude the taxes collected and remitted from revenues and expenses.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Shipping and Handling</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Shipping and handling charges billed to customers are recorded as revenue. Shipping and handling costs are recorded within cost of goods sold on the statement of operations.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Advertising</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Advertising costs are expensed as incurred. Advertising expenses were $42,665 and $46,662 in the three and six months ended June 30, 2016 and were $500 and $1,417 in the three and six months ended June 30, 2015.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 9; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Research and Development</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Research and development costs are charged to operations as incurred. Research and development expenses were $100,234 and $222,395 in the three and six months ended June 30, 2016 and were $58,285 and $120,947 in the three and six months ended June 30, 2015.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company recognizes revenue in accordance with the SEC’s Staff Accounting Bulletin Topic 13 Revenue Recognition and ASC 605-Revenue Recognition.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable and collectability is probable. Delivery is considered to have occurred upon either shipment of the product or arrival at its destination based on the shipping terms of the transaction. The Company’s standard terms specify that shipment is FOB Skyline and the Company will, therefore, recognize revenue upon shipment in most cases. This revenue recognition policy applies to shipments of the STREAMWAY FMS units as well as shipments of filters and fluids. When these conditions are satisfied, the Company recognizes gross product revenue, which is the price it charges generally to its customers for a particular product. Under the Company’s standard terms and conditions, there is no provision for installation or acceptance of the product to take place prior to the obligation of the customer. The customer’s right of return is limited only to the Company’s standard one-year warranty whereby the Company replaces or repairs, at its option, and it would be rare that the STREAMWAY FMS unit or significant quantities of cleaning solution or filters may be returned. Additionally, since the Company buys the STREAMWAY FMS units, cleaning solution and filters from “turnkey” suppliers, the Company would have the right to replacements from the suppliers if this situation should occur.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Cash Equivalents</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company considers all highly liquid debt instruments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents are stated at cost, which approximate fair value.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Certificates of Deposit</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Short-term interest bearing investments are those with maturities of less than one year but greater than three months when purchased. Certificates with maturity dates beyond one year are classified as noncurrent assets. These investments are readily convertible to cash and are stated at cost plus accrued interest, which approximates fair value.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Investment Securities</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Readily marketable investments in debt and equity securities are classified as available-for-sale and are reported at fair value with unrealized gains and losses recorded in other comprehensive income. Unrealized gains are charged to earnings when an incline in fair value above the cost basis is determined to be other-than-temporary. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Fair Value Measurements</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Under generally accepted accounting principles as outlined in the Financial Accounting Standards Board’s <div style="display: inline; font-style: italic;">Accounting Standards Certification</div> (ASC) 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The accounting standards ASC 820 establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing as asset or liability as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level 1 – Observable inputs such as quoted prices in active markets;</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in">Level 2 – Inputs other than quoted prices in active markets, that are observable either directly or indirectly; and</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> Level 3 – Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.</div> <div style=" font-size: 10pt; text-indent: -0.5in; margin: 0pt 0 0pt 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company uses observable market data, when available, in making fair value measurements. Fair value measurements are classified according to the lowest level input that is significant to the valuation.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The fair value of the Company’s investment securities were determined based on Level 1 inputs.</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Receivables</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Receivables are reported at the amount the Company expects to collect on balances outstanding. The Company provides for probable uncollectible amounts through charges to earnings and credits to the valuation based on management’s assessment of the current status of individual accounts, changes to the valuation allowance have not been material to the financial statements.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 10; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Inventories</div></div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventory balances are as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">June 30,</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center">December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2016</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">2015</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; text-align: left">Finished goods</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">69,504</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">30,237</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Raw materials</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">151,108</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">162,623</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Work-In-Process</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">71,548</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">38,880</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">292,160</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">231,740</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Property and Equipment</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over the estimated useful lives of the respective assets. Estimated useful asset life by classification is as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Computers and office equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">7</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 87%; font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 4%; font-size: 10pt; text-align: right"> </td> <td style="width: 4%; font-size: 10pt; text-align: center">5</td> <td style="width: 4%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right">3</td> <td style="font-size: 10pt; text-align: center"><div style="display: inline; font-size: 10pt">-</div></td> <td style="font-size: 10pt; text-align: left">7</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Demo Equipment</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: center">3</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company’s investment in Fixed Assets consists of the following:</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">June 30,<br /> 2016</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,<br /> 2015</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; font-size: 10pt; font-weight: bold; text-align: left">Computers and office equipment</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">166,025</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">153,553</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">25,635</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">23,874</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left">Manufacturing tooling</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">101,104</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">97,288</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Demo Equipment</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">8,962</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-indent: 10pt">Total</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">301,726</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">283,677</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">180,257</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">144,079</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-align: left; padding-bottom: 2.25pt; text-indent: 10pt">Total Fixed Assets, Net</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">121,469</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">139,598</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Maintenance and repairs are charged to operations as incurred.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Intangible Assets</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Intangible assets consist of trademarks and patent costs. Amortization expense was $1,878 and $3,710 in the three and six months ended June 30, 2016, and was $1,444 and $2,888 in the three and six months ended June 30, 2015. The assets are reviewed for impairment annually, and impairment losses, if any, are charged to operations when identified.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Income Taxes</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company accounts for income taxes in accordance with ASC 740- Income Taxes (“ASC 740”). Under ASC 740, deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and net operating loss and credit carryforwards using enacted tax rates in effect for the year in which the differences are expected to impact taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company reviews income tax positions expected to be taken in income tax returns to determine if there are any income tax uncertainties. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by taxing authorities, based on technical merits of the positions. The Company has identified no income tax uncertainties.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Tax years subsequent to 2012 remain open to examination by federal and state tax authorities.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Patents and Intellectual Property</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On January 25th, 2014 the Company filed a non-provisional PCT Application No. PCT/US2014/013081 claiming priority from the U.S. Provisional Patent Application, number 61756763 which was filed one year earlier on January 25th, 2013. The Patent Cooperation Treaty (“PCT”) allows an applicant to file a single patent application to seek patent protection for an invention simultaneously in each of the 148 countries of the PCT, including the United States. By filing this single “international” patent application through the PCT, it is easier and more cost effective than filing separate applications directly with each national or regional patent office in which patent protection is desired.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <!-- Field: Page; Sequence: 11; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">Our PCT patent application is for the new model of the surgical fluid waste management system. We obtained a favorable International Search Report from the PCT searching authority indicating that the claims in our PCT application are patentable (i.e., novel and non-obvious) over the cited prior art. A feature claimed in the PCT application is the ability to maintain continuous suction to the surgical field while measuring, recording and evacuating fluid to the facilities sewer drainage system. This provides for continuous operation of the STREAMWAY System unit in suctioning waste fluids, which means that suction is not interrupted during a surgical operation, for example, to empty a fluid collection container or otherwise dispose of the collected fluid.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company holds the following granted patents in the United States and a pending application in the United States on its earlier models: US7469727, US8123731 and U.S. Publication No. US20090216205 (collectively, the “Patents”). These Patents will begin to expire on August 8, 2023.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In July 2015, Skyline Medical filed an international (PCT) patent application for its fluid waste collection system and received a favorable determination by the International Searching Authority finding that all of the claims satisfy the requirements for novelty, inventive step and industrial applicability. Skyline anticipates that the favorable International Search Report will result in allowance of its various national applications.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Credit Risk</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions and, by policy, generally limits the amount of credit exposure to any one financial institution. The Company has a credit risk concentration as a result of depositing $440,655 of funds in excess of insurance limits in a single bank.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Product Warranty Costs</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In the three and six months ending June 30, 2016 the incurred approximately $1,092 and $30,981 in current warranty costs and incurred $17,095 and $27,604 in warranty costs for the three and six months ending June 30, 2015.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Segments</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company operates in one segment for the sale of its medical device and consumable products. Substantially all of the Company’s assets, revenues and expenses for the three and six months ending June 30, 2016 and for 2015 in entirety were located at or derived from operations in the United States. There were no revenue from sales outside of the United States. The Company has recently attained its ISO 13485 certification and is applying to sell our products in Canada.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Risks and Uncertainties</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company is subject to risks common to companies in the medical device industry, including, but not limited to, development by the Company or its competitors of new technological innovations, dependence on key personnel, protection of proprietary technology, and compliance with regulations of the FDA and other governmental agencies.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Interim Financial Statements</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has prepared the unaudited interim financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. These interim financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary to present fairly the Company’s financial position, the results of its operations and its cash flows for the interim periods. These interim financial statements should be read in conjunction with the annual financial statements and the notes thereto contained in the Form 10-K filed with the SEC on March 16, 2016. The nature of the Company’s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year.</div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Product Warranty Costs</div></div><div style=" font-size: 10pt; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">In the three and six months ending June 30, 2016 the incurred approximately $1,092 and $30,981 in current warranty costs and incurred $17,095 and $27,604 in warranty costs for the three and six months ending June 30, 2015.</div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">NOTE 3 – STOCKHOLDERS’ DEFICIT, STOCK OPTIONS AND WARRANTS</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has an equity incentive plan, which allows issuance of incentive and non-qualified stock options to employees, directors and consultants of the Company, where permitted under the plan. The exercise price for each stock option is determined by the Board of Directors. Vesting requirements are determined by the Board of Directors when granted and currently range from immediate to three years. Options under this plan have terms ranging from three to ten years.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 12; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">Public Offering of Units</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On August 31, 2015 (the “Issuance Date”), the Company completed a public offering (the “Offering”) of 1,666,667 Units (the “Units”) as described below. The public offering price in the Offering was $9.00 per Unit, and the purchase price for the underwriter of the Offering (the “Underwriter”) was $8.28 per Unit, resulting in an underwriting discount and commission of $0.72 (or 8.00%) per Unit and total net proceeds to the Company before expenses of $13.8 million. The Company had granted the Underwriter an option for a period of 45 days to purchase up to an additional 250,000 Units solely to cover over-allotments. The Underwriter chose not to purchase any additional Units under the over-allotment option. The Company paid to the Underwriter a non-accountable expense allowance equal to 1% of the gross proceeds of the Offering and agreed to reimburse expenses incurred by the Underwriter up to $70,000.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On August 31, 2015, as a result of the consummation of the Offering and the issuance of the 228,343 Exchange Units in the Unit Exchange described below, the Company issued a total of 1,895,010 Units, comprised of a total of aggregate of 1,895,010 shares of Common Stock, 1,895,010 shares of Series B Preferred Stock and 7,580,040 Series A Warrants.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Each Unit consisted of one share of common stock, par value $0.01 per share (the “Common Stock”), one share of Series B Convertible Preferred Stock (“Series B Preferred Stock”) and four Series A Warrants. The shares of Common Stock, the shares of Series B Preferred Stock and the Series A Warrants that comprise the Units automatically separated on February 29, 2016.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For a description of the terms of the Series B Convertible Preferred Stock included within the Units, see “Series B Preferred Stock” below. For a description of the terms of the Series A Warrants included within the Units, see “Series A Warrants” below.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Series A Warrants.</div> The Series A Warrants separated from the Series B Convertible Preferred Stock and the Common Stock included within the Units as described above and are currently exercisable. The Series A Warrants terminate on August 31, 2020. Each Series A Warrant is exercisable into one share of Common Stock at an initial cash exercise price of $4.95 per share. The Cash exercise price and number of shares of common stock issuable upon cash exercise is subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events affecting the Common Stock and the exercise price.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Holders may exercise Series A Warrants by paying the exercise price in cash or, in lieu of payment of the exercise price in cash, by electing to receive a number of shares of Common Stock equal to the Black-Scholes Value (as defined below) based upon the number of shares the holder elects to exercise. The number of shares of Common Stock to be delivered according to the following formula, referred to as the “Cashless Exercise.”</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Total Shares = (A x B)/C</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Where:</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; width: 700px;"> <tr style="vertical-align: top"> <td style="width: 38.15pt"></td> <td style="width: 18pt"><div style="display: inline; font-family: Symbol">·</div></td> <td>Total shares is the number of shares of Common Stock to be issued upon a Cashless Exercise.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; width: 700px;"> <tr style="vertical-align: top"> <td style="width: 38.15pt"></td> <td style="width: 18pt"><div style="display: inline; font-family: Symbol">·</div></td> <td>A is the total number of shares with respect to which the Series A Warrant is then being exercised.</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; width: 700px;"> <tr style="vertical-align: top"> <td style="width: 38.15pt"></td> <td style="width: 18pt"><div style="display: inline; font-family: Symbol">·</div></td> <td>B is the Black-Scholes Value (as defined below).</td> </tr> </table> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; width: 700px;"> <tr style="vertical-align: top"> <td style="width: 38.15pt"></td> <td style="width: 18pt"><div style="display: inline; font-family: Symbol">·</div></td> <td>C is the closing bid price of the Common Stock as of two trading days prior to the time of such exercise, provided that in no event may “C” be less than $0.43 per share (subject to appropriate adjustment in the event of stock dividends, stock splits or similar events affecting the Common Stock).</td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Black-Scholes Value (as defined above) as of June 30, 2016 was $4.301, and the closing bid price of Common Stock as of June 30, 2016, was $0.15. Therefore, an exercise on that date would have resulted in the issuance of 10.00 shares of Common Stock for each Series A Warrant. Approximately 6,077,778 Series A Warrants have been exercised in cashless exercises as of June 30, 2016, resulting in the issuance of 61,060,711 shares of Common Stock. If all of the remaining 27,051 Series A Warrants that were issued as part of the Units sold in the Offering and part of the Units issued on August 31, 2015 were exercised pursuant to a cashless exercise and the closing bid price of our common stock as of the two trading days prior to the time of such exercise was $0.43 per share or less and the Black-Scholes Value were $4.301 (the Black-Scholes Value as of June 30, 2016), then a total of an additional approximately 270,510 shares of our common stock would be issued to the holders of such Series A Warrants.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Series A Warrants will not be exercisable or exchangeable by the holder of such warrants to the extent (and only to the extent) that the holder or any of its affiliates would beneficially own in excess of 4.99% of the common stock of the Company, determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 13; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">In addition to (but not duplicative of) the adjustments to the exercise price and the number of shares of Common Stock issuable upon exercise of the Series A Warrants in the event of stock dividends, stock splits, reorganizations or similar events, the Series A Warrants provide for certain adjustments if the Company, at any time prior to the three year anniversary of the Issuance Date, (1) declares or makes any dividend or other distribution of its assets (or rights to acquire its assets) to all or substantially all of the holders of shares of Common Stock at any time after the Issuance Date, or (2) grants, issues or sells any options, convertible securities or rights to purchase stock, warrants, securities or other property pro rata to all or substantially all of the record holders of any class of shares of Common Stock. Further, if at any time a Series A Warrant is outstanding, the Company consummates any fundamental transaction, as described in the Series A Warrants and generally including any consolidation or merger into another corporation, or the sale of all or substantially all of our assets, or other transaction in which the Common Stock is converted into or exchanged for other securities or other consideration, the holder of any Series A Warrants will thereafter receive, the securities or other consideration to which a holder or the number of shares of Common Stock then deliverable upon the exercise or exchange of such Series A Warrants would have been entitled upon such consolidation or merger or other transaction.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Unit Purchase Option.</div> The Company, in connection with the Offering, entered into a Unit Purchase Option Agreement, dated as of August 31, 2015 (the “Unit Purchase Option”), pursuant to which the Company granted the Underwriter the right to purchase from the Company up to a number of Units equal to 5% of the Units sold in the Offering (or up to 83,333 Units) or the component securities of such Units at an exercise price equal to 125% of the public offering price of the Units in the Offering, or $11.25 per Unit. The Unit Purchase Option expires on August 25, 2018.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Series B Preferred Stock.</div> Each share of Series B Preferred Stock became convertible into one share of Common Stock (subject to appropriate adjustment in the event of stock dividends, stock splits, reorganizations or similar events) as of February 29, 2016. In addition, the Series B Preferred Stock will automatically convert into shares of common stock upon the occurrence of a fundamental transaction, as described in the certificate of designations for the Series B Preferred Stock but including mergers, shares of the company’s assets, changes in control and similar transactions. The Series B Preferred Stock is not convertible by the holder of such preferred stock to the extent (and only to the extent that the holder or any of its affiliates would beneficially own in excess of 4.99% of the common stock of the Company. The Series B Preferred Stock has no voting rights, except for the right to approve certain amendments to the certificate of designations or similar actions. With respect to payment of dividends and distribution of assets upon liquidation or dissolution or winding up of the Company, the Series B Preferred Stock shall rank equal to the common stock of the Company. No sinking fund has been established for the retirement or redemption of the Series B Preferred Stock.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Unit Exchange.</div> On February 4, 2014, the Company raised $2,055,000 in gross proceeds from a private placement of 20,550 shares of Series A Convertible Preferred Stock, par value $0.01, with a stated value of $100 per share (the “Series A Preferred Shares”) and warrants to purchase shares of the Company’s common stock. The Series A Preferred Shares and warrants were sold to investors pursuant to a Securities Purchase Agreement, dated as of February 4, 2014. On August 31, 2015, the Company issued a total of 228,343 Units (the “Exchange Units”) in exchange for the outstanding Series A Preferred Stock which were then cancelled pursuant to an agreement with the holders of the Series A Preferred Shares. The warrants that were issued in connection with the issuance of the Series A Preferred Shares remained outstanding; however, the warrant amounts were reduced so that the warrants are exercisable into an aggregate of 84,770 shares of the Company’s common stock. The Exchange Units were exempt from registration under Section 3(a)(9) of the Securities Act. On August 31, 2015, the Company filed a termination certificate with the Delaware Secretary of State. Following that date there were no shares of Series A Preferred Stock outstanding, and the previously authorized shares of Series A Preferred Stock resumed the status of authorized but issued and undesignated shares of preferred stock of the Company.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Redemption of Convertible Notes.</div> In connection with the closing of the Offering, $933,074 aggregate principal amount of Convertible Notes plus interest and a 40% redeemable premium were redeemed for total payments of $1,548,792. See Note 4. Of this amount, approximately $167,031 was paid to its affiliates in redemption of their Convertible Notes.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Registered Exchange Offer for Warrants.</div> On March 25, 2016, the Company commenced a registered exchange offer (the “Exchange Offer”) to exchange Series B Warrants (the “Series B Warrants”) to purchase shares of our common stock, par value $0.01 per share (the “Warrant Shares”), for up to an aggregate of 3,157,186 outstanding Series A Warrants (the “Series A Warrants”). On March 31, 2016, each Series A Warrant could be exercised on a cashless basis for 10.05 shares of common stock. Each Series B Warrant may be exercised on a cashless basis for one share of common stock. For each outstanding Series A Warrant tendered by holders, we offered to issue 10.2 Series B Warrants, which are subject to cashless exercise at a fixed rate of one share of common stock per Series B Warrant (subject to further adjustment for stock splits, etc.). The Exchange Offer expired at midnight, Eastern time, on April 21, 2016. 1,770,556 Series A Warrants were tendered by holders. The Company delivered an aggregate of 18,059,671 Series B Warrants pursuant to the terms of the Exchange Offer. In addition, between March 31, 2016 and April 21, 2016 1,040,373 Series A Warrants were exercised in cashless exercises, resulting in the issuance of 10,454,136 shares of common stock.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Accounting for share-based payment</div></div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company has adopted ASC 718- Compensation-Stock Compensation ("ASC 718"). Under ASC 718 stock-based employee compensation cost is recognized using the fair value based method for all new awards granted after January 1, 2006 and unvested awards outstanding at January 1, 2006. Compensation costs for unvested stock options and non-vested awards that were outstanding at January 1, 2006, are being recognized over the requisite service period based on the grant-date fair value of those options and awards, using a straight-line method. We elected the modified-prospective method under which prior periods are not retroactively restated.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant using an option-pricing model or other acceptable means. The Company uses the Black-Scholes option valuation model which requires the input of significant assumptions including an estimate of the average period of time employees will retain vested stock options before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based compensation and, consequently, the related expense recognized. The assumptions the Company uses in calculating the fair value of stock-based payment awards represent the Company's best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based compensation expense could be materially different in the future.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <!-- Field: Page; Sequence: 14; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">Since the Company's common stock has no significant public trading history, and the Company has experienced no significant option exercises in its history, the Company is required to take an alternative approach to estimating future volatility and estimated life and the future results could vary significantly from the Company's estimates. The Company compiled historical volatilities over a period of 2 to 7 years of 15 small-cap medical companies traded on major exchanges and 10 mid-range medical companies on the OTC Bulletin Board and combined the results using a weighted average approach. In the case of ordinary options to employees the Company determined the expected life to be the midpoint between the vesting term and the legal term. In the case of options or warrants granted to non-employees, the Company estimated the life to be the legal term unless there was a compelling reason to make it shorter.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">When an option or warrant is granted in place of cash compensation for services, the Company deems the value of the service rendered to be the value of the option or warrant. In most cases, however, an option or warrant is granted in addition to other forms of compensation and its separate value is difficult to determine without utilizing an option pricing model. For that reason the Company also uses the Black-Scholes option-pricing model to value options and warrants granted to non-employees, which requires the input of significant assumptions including an estimate of the average period the investors or consultants will retain vested stock options and warrants before exercising them, the estimated volatility of the Company's common stock price over the expected term, the number of options and warrants that will ultimately be forfeited before completing vesting requirements, the expected dividend rate and the risk-free interest rate. Changes in the assumptions can materially affect the estimate of fair value of stock-based consulting and/or compensation and, consequently, the related expense recognized.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">Since the Company has limited trading history in its stock and no first-hand experience with how its investors and consultants have acted in similar circumstances, the assumptions the Company uses in calculating the fair value of stock-based payment awards represent its best estimates, which involve inherent uncertainties and the application of management's judgment. As a result, if factors change and the Company uses different assumptions, the Company's equity-based consulting and interest expense could be materially different in the future.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-style: italic;">Valuation and accounting for options and warrants</div></div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The Company determines the grant date fair value of options and warrants using a Black-Scholes option valuation model based upon assumptions regarding risk-free interest rate, expected dividend rate, volatility and estimated term.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In January 2014 the Company issued 4,336 shares of common stock to the former CEO at $1.25 per share upon his exercising options.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In January through March 2014, 9 warrant holders exercised warrants through a cashless exercise for a total of 15,442 shares of common stock.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In January and February 2014 the Company issued warrants to purchase 21,538 shares pursuant to a February 4, 2014 private placement whereby the Company issued 20,550 shares of Series A Convertible Preferred Stock raising gross proceeds of $2,055,000. The warrants are at an exercise price of $24.38.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In February 2014 the Company issued a warrant to purchase 1,482 shares of common stock at an exercise price of $20.25 to a major shareholder Dr. Samuel Herschkowitz. The warrant is in consideration for a bridge loan extended in December 2013 that has been paid in February 2014.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On March 31, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 970 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In March 2014, the Company issued 4,444 shares of common stock to a warrant holder for a partial cash exercise at $11.25 per share; issued 3,333 shares to the holder via the cashless exercise of the remainder of the warrant.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In June 2014, the Company issued 3,725 shares of common stock to a warrant holder exercising cashless warrants.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On June 30, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 1,561 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On June 30, 2014, the Company issued a warrant to purchase 5,431 shares of common stock at an exercise price of $12.38 to SOK Partners, LLC, in consideration for a bridge loan in the form of convertible notes. On September 9, 2014 the Resale Registration Statement went into effect. The convertible note agreement provided an immediate approximately 11% reduction to the warrant agreement. Therefore, the warrant has been adjusted to purchase 4,831 shares of common stock at an exercise price of $12.38 to SOK Partners, LLC in consideration for a bridge loan.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In July 2014, the Company issued warrants to purchase 28,986 shares of common stock at an exercise price of $12.38 to two lenders in consideration for a bridge loan in the form of convertible notes. The shares above reflect approximately an 11% reduction resulting from the Resale Registration Statement that went effective September 9, 2014.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In August 2014, the Company issued warrants to purchase 61,539 of common stock at an exercise price of $24.38 to the Purchasers of the Preferred Shares. The Securities Purchase Agreement with the Preferred Shareholders stipulated that if the Company was not listed on either the NASDAQ Stock Market, the New York Stock Exchange or the NYSE MKT within 180 days of closing the agreement then warrants to purchase the above additional shares would be issued in aggregate to the Preferred Shareholders.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <!-- Field: Page; Sequence: 15; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">In August and September 2014, the Company issued warrants to purchase 37,440 shares of common stock at an exercise price of $12.38 to four lenders in consideration for a bridge loan in the form of convertible notes. The shares above reflect the approximate 11% reduction resulting from the Resale Registration Statement that went effective September 9, 2014.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On September 30, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 1,561 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In November 2014, the Company issued 13,700 shares of common stock, par value $0.01, in escrow for debt settlement.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On December 31, 2014, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $19.50 per share. As a result 1,559 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For grants of stock options and warrants in 2014 the Company used a 1.44% to 2.75% risk-free interest rate, 0% dividend rate, 59% to 66% volatility and estimated terms of 5 to 10 years. Value computed using these assumptions ranged from $3.2006 to $13.9195 per share.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">In January 2015, the Company issued a dividend adjustment to the Purchasers of the Preferred Shares as described above. Certain previous dividends paid were calculated with an exercise price of $19.50 per share, but should have been calculated at $9.75 per share. As a result 3,122 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On March 31, 2015, the Company issued dividends to the Purchasers of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $9.75 per share. As a result 3,121 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On June 30, 2015, the Company issued dividends to Purchases of the Preferred Shares as described above. The dividends are at an annual rate of 6% of the stated value of the Preferred Shares paid on a quarterly basis in the form of common stock per a stipulated $9.75 per share. As a result 3,121 shares of common stock were issued to 16 holders of Preferred Shares.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For grants of stock options and warrants in 2015 the Company used a 1.63% to 2.35% risk-free interest rate, 0% dividend rate, 59% to 66% volatility and estimated terms of 5 to 10 years. Value computed using these assumptions ranged from $0.2750 to $5.5695 per share.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On March 25, 2016, the Company commenced the Exchange Offer which was completed on April 20, 2016, as described above.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On July 1, 2016, the Company issued inducement stock options in accordance with NASDAQ listing rules for 1,000,000 shares of common stock, par value $0.01, at $0.15 per share to the Company’s newly hired Vice President of Sales. The options will vest in six equal increments: on the first, second, third, fourth, fifth and sixth quarters of the hiring date anniversary.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">For grants of stock options and warrants in 2016 the Company used a 1.49% to 1.78% risk free interest rate, 0% dividend rate, 66% volatility and estimated terms of 5 to 10 years. Value computed using these assumptions ranged from $0.1087 to $0.1239 per share.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The following summarizes transactions for stock options and warrants for the periods indicated:</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Stock Options</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Warrants</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> <td style="font-size: 10pt"> </td> <td colspan="3" style="font-size: 10pt"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Exercise</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Number of</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Exercise</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt; text-align: center"> </td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Price</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Shares</td> <td style="font-size: 10pt; font-weight: bold"> </td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">Price</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Outstanding at December 31, 2014</td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right">448,601</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">7.51</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 10%; font-size: 10pt; text-align: right">500,722</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> <td style="width: 1%; font-size: 10pt"> </td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right">7.95</td> <td style="width: 1%; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">354,253</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">2.76</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">7,581,722</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">4.95</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(19,136</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">11.73</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(1,967</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">11.34</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(3,000</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">4.95</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Outstanding at December 31, 2015</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">783,718</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">5.33</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">8,077,477</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right">5.14</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Issued</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">217,650</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">0.14</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">18,272,042</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">0.06</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Expired</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">(552,104</td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">4.94</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right">-</td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Exercised</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(32,796</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">2.63</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">(16,796,628</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">-</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at June 30, 2016</td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">416,468</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">3.36</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">9,552,891</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right">4.41</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <!-- Field: Page; Sequence: 16; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">At June 30, 2016, 416,468 stock options are fully vested and currently exercisable with a weighted average exercise price of $3.36 and a weighted average remaining term of 7.50 years. All warrants are fully vested and exercisable. Stock-based compensation recognized for the six months ending June 2016 and June 2015 was $48,649 and $302,981, respectively. The Company has $0 of unrecognized compensation expense related to non-vested stock.</div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">The following summarizes the status of options and warrants outstanding at June 30, 2016:</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"> </div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 700px;"> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: center"><div style="display: inline; font-size: 10pt; color: black"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Range of Prices</div></div></div></td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: center"><div style="display: inline; font-size: 10pt; color: black"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Shares </div></div></div></td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: center"><div style="display: inline; font-size: 10pt; color: black"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Weighted Remaining Life </div></div></div></td> <td style="font-size: 10pt; color: black; font-weight: bold; font-style: italic; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: black; text-align: left"><div style="display: inline; font-size: 10pt; color: black">Options</div></td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; font-size: 10pt; color: black; text-align: left">$</td> <td style="width: 31%; font-size: 10pt; color: black; text-align: right">0.15</td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; color: black"> </td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 31%; font-size: 10pt; color: black; text-align: right">100,002</td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 1%; font-size: 10pt; color: black"> </td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> <td style="width: 30%; font-size: 10pt; color: black; text-align: right">10.00</td> <td style="width: 1%; font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">0.17</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">88,236</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.76</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">0.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7,333</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">5.02</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">2.63</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8,559</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.32</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">2.94</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">28,913</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.51</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.10</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">58,068</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.01</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.21</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4,674</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">9.26</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.45</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">5,796</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8.76</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">4.875</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">134</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.70</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">5.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">2,031</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.19</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">5.925</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">23,206</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.72</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">6.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">43,998</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.13</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">6.50</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,076</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8.51</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">8.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,030</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">8.26</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">9.9375</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,019</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.04</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">10.50</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,238</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.04</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">11.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">13,222</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.55</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">12.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">67</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">6.86</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">13.875</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,800</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.76</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">17.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7,652</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.69</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">18.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3,334</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.65</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">20.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4,693</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.51</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">21.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,336</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.27</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">23.85</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,050</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: right">416,468</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; color: black; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td colspan="2" style="font-size: 10pt; color: black; text-align: left"><div style="display: inline; font-size: 10pt; color: black">Warrants</div></td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt"> </td> <td style="font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; text-align: right"> </td> <td style="font-size: 10pt; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">0.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,263,043</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4.17</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">3.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">56,381</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.70</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">4.95</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">7,789,403</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4.17</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">6.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">102,857</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.70</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">9.00</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">2,666</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.57</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">9.75</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">63,232</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3.10</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">11.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">147,420</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.45</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">12.375</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">71,257</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3.11</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">12.38</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">5,557</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">3.36</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">13.50</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">4,444</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.97</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">14.85</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">23,612</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1.91</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; color: black; text-align: left">$</td> <td style="font-size: 10pt; color: black; text-align: right">20.25</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">1,481</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black"> </td> <td style="font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; text-align: right">2.63</td> <td style="font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left">$</td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: right">24.375</td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; color: black; text-align: left"> </td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; color: black; text-align: right">21,538</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left"> </td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: right">2.60</td> <td style="padding-bottom: 1pt; font-size: 10pt; color: black; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="font-size: 10pt; color: black; padding-bottom: 2.25pt"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: right">9,552,891</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; color: black; text-align: left"> </td> <td style="font-size: 10pt; padding-bottom: 2.25pt"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: right"> </td> <td style="padding-bottom: 2.25pt; font-size: 10pt; text-align: left"> </td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <!-- Field: Page; Sequence: 17; Value: 4 --> <!-- Field: /Page --> <div style=" font-size: 10pt; margin: 0pt 0">Stock options and warrants expire on various dates from June 2017 to June 2026.</div> <div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On July 24, 2015, an amendment to the Certificate of Incorporation became effective, pursuant to which the authorized common stock was increased to 100,000,000 shares of common stock and the authorized preferred stock was increased to 20,000,000 shares.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.5in"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-size: 10pt; margin: 0pt 0">Under a Separation Agreement effective June 13, 2016, all of our former CEO Josh Kornberg’s 552,104 outstanding stock options were canceled.</div> <div style=" font-size: 10pt; 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22325091
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Note 11 – SUBSEQUENT EVENTS</div></div> <div style=" font-size: 10pt; margin: 0pt 0"> </div> <div style=" font-size: 10pt; margin: 0pt 0">On July 1, 2016, the Company hired Peter D. Alex as the new Vice President of Sales.</div></div>
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;">Accounting Policies and Estimates</div></div><div style=" font-size: 10pt; text-indent: 0.5in; margin: 0pt 0"> </div><div style=" font-size: 10pt; margin: 0pt 0">The presentation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div></div></div></div>
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The number of shares underlying options and warrants outstanding as of June 30, 2016 and June 30, 2015 are 9,969,359 and 1,133,856 respectively. The effect of the shares that would be issued upon exercise of such options, warrants and preferred stock has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive
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