Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
OPERATING ACTIVITIES:    
Net income (loss) $ 300,342 $ (4,947,434)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 545,832 164,522
Non-cash interest expense associated with convertible debt and warrants 4,954 2,187,563
Non-cash interest expense associated with loan fees 0 2,004,202
Non-cash change in fair value of derivative liability 0 (83,580)
Stock based compensation expense 91,227 29,390
Non-cash issuance of common stock for services 7,500 82,127
Provision for uncollectible accounts 3,353 1,700
Reserve for obsolete inventory 32,097 0
Changes in assets and liabilities:    
Accounts receivable 1,327,208 (555,591)
Prepaid expenses and other current assets 356,751 75,546
Inventories 182,270 673,857
Deposits and other assets 55 265
Accounts payable 632,708 (1,118,797)
Accrued liabilities (697,589) 183,453
Income tax payable (52,020) 0
Net cash provided by (used in) operating activities 2,734,688 (1,302,777)
INVESTING ACTIVITIES:    
Expenditures for intangible assets 0 (20,714)
Purchases of property and equipment (94,439) (28,798)
Net cash used in investing activities (94,439) (49,512)
FINANCING ACTIVITIES:    
Net borrowings under revolver loans 540,354 0
Payments on notes payable (238,836) (346,182)
Payments on notes payable, related party (845,566) 0
Payment for the purchase of the noncontrolling interest (1,500,000) 0
Proceeds from issuance of convertible debt 0 100,000
Net cash provided by financing activities (2,044,048) (246,182)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 596,201 (1,598,471)
CASH AND CASH EQUIVALENTS, beginning of period 2,727,818 8,114,682
CASH AND CASH EQUIVALENTS, end of period 3,324,019 6,516,211
Supplemental cash flow disclosures:    
Interest paid 345,483 16,612
Income taxes paid 466,000 0
Noncash financing and investing activities:    
Recognition of contingent beneficial conversion feature 0 100,000
Conversion of notes payable and accrued interest into common stock 0 635,756
Accrued and unpaid dividends 480 483
Note payable issued for purchase of noncontrolling interest $ 500,000 $ 0