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 ($)
 9 Months Ended
Jun. 30, 2016
Jun. 30, 2015
OPERATING ACTIVITIES:    
Net income (loss) $ 14,887,047 $ (10,251,045)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 1,623,013 500,699
Non-cash interest expense associated with convertible debt and warrants 4,749 2,194,013
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 254,710 621,311
Repricing of stock option exercise price 0 54,677
Non-cash issuance of common stock for services 22,500 2,008,559
Provision for uncollectible accounts 30,073 24,819
Reserve for obsolete inventory 703,532 255,110
Change in deferred taxes (12,254,278) 0
Change in contingent liability (316,000) 0
Loss on disposal of property and equipment 71,614 48,534
Impairment of intangible assets 0 445,884
Changes in assets and liabilities:    
Accounts receivable (426,744) (85,049)
Prepaid expenses and other current assets 55,849 245,198
Inventories 1,868,343 1,485,196
Deposits and other assets 16,325 (5,082)
Accounts payable 556,916 (971,874)
Accrued liabilities 332,915 13,094
Income tax payable (376,000) 0
Net cash provided by (used in) operating activities 7,054,564 (1,495,334)
INVESTING ACTIVITIES:    
Proceeds from the sale of property and equipment 653,857 0
Expenditures for intangible assets 0 (52,985)
Purchases of property and equipment (3,343,937) (43,453)
Net cash used in investing activities (2,690,080) (96,438)
FINANCING ACTIVITIES:    
Net borrowings under revolver loans (2,485,546) 0
Issuance of common stock for cash, net of issuance costs 0 538,441
Payments on notes payable (4,400,114) (556,047)
Payments on notes payable, related party (4,505,979) 0
Payments on debt issue costs (415,757) 0
Purchase of treasury stock (202,005)  
Payment for the purchase of the noncontrolling interest (2,000,000) 0
Proceeds from issuance of notes payable 10,050,521 0
Proceeds from issuance of convertible debt 0 100,000
Net cash provided by (used in) financing activities (3,958,880) 82,394
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 405,604 (1,509,378)
CASH AND CASH EQUIVALENTS, beginning of period 2,727,818 8,114,682
CASH AND CASH EQUIVALENTS, end of period 3,133,422 6,605,304
Supplemental cash flow disclosures:    
Interest paid 842,202 24,312
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 1,442
Note payable issued for purchase of noncontrolling interest $ 500,000 $ 0