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 ($)
 6 Months Ended
Mar. 31, 2016
Mar. 31, 2015
OPERATING ACTIVITIES:    
Net income (loss) $ 1,518,850 $ (6,042,654)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 1,061,018 332,147
Non-cash interest expense associated with convertible debt and warrants 9,352 2,191,273
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 174,885 48,399
Non-cash issuance of common stock for services 15,000 89,627
Provision for uncollectible accounts (2,326) 1,767
Reserve for obsolete inventory (68,250) 194,636
Change in contingent liability (316,000) 0
Changes in assets and liabilities:    
Accounts receivable (1,142,274) (16,924)
Prepaid expenses and other current assets 416,905 220,624
Inventories 948,847 1,254,837
Deposits and other assets 5,593 361
Accounts payable 1,493,616 (1,112,728)
Accrued liabilities (325,481) (24,612)
Income tax payable (376,000) 0
Net cash provided by (used in) operating activities 3,413,735 (942,625)
INVESTING ACTIVITIES:    
Expenditures for intangible assets 0 (37,047)
Purchases of property and equipment (123,204) (33,157)
Net cash used in investing activities (123,204) (70,204)
FINANCING ACTIVITIES:    
Net borrowings under revolver loans 806,304 0
Issuance of common stock for cash, net of issuance costs 0 538,441
Payments on notes payable (477,672) (551,112)
Payments on notes payable, related party (845,566) 0
Purchase of treasury stock (80,292) 0
Payment for the purchase of the noncontrolling interest (2,000,000) 0
Proceeds from issuance of convertible debt 0 100,000
Net cash provided by (used in) financing activities (2,597,226) 87,329
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 693,305 (925,500)
CASH AND CASH EQUIVALENTS, beginning of period 2,727,818  
CASH AND CASH EQUIVALENTS, end of period 3,421,123 7,189,182
Supplemental cash flow disclosures:    
Interest paid 680,469 16,612
Income taxes paid 790,000 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 480 962
Note payable issued for purchase of noncontrolling interest $ 500,000 $ 0