Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.6.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2016
Sep. 30, 2015
OPERATING ACTIVITIES:    
Net income (loss) $ 17,954,051 $ (14,712,285)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation and amortization 3,125,311 1,047,752
Non-cash interest expense associated with convertible debt and warrants 4,749 2,198,003
Non-cash interest expense associated with loan fees 2,801,732 2,004,202
Non-cash change in fair value of derivative liability 0 (83,580)
Non-cash note and agreement reductions due to settlement (962,941) 0
Stock based compensation expense 256,146 712,538
Repricing of stock option exercise price 0 54,677
Non-cash issuance of common stock for services 19,999 2,016,059
Provision for uncollectible accounts 53,727 24,819
Non-cash write-down of inventory 1,080,051 0
Reserve for obsolete inventory 703,532 255,110
Change in deferred taxes (12,524,582) 0
Change in contingent liability (316,000) 0
(Gain) on Bargain purchase of acquisition (4,573,968) 0
(Gain) Loss on disposal of property and equipment 71,670 (104,966)
Impairment of intangible assets 0 3,713,472
Changes in assets and liabilities:    
Accounts receivable (144,536) (152,040)
Prepaid expenses and other current assets (3,423,650) (124,550)
Inventories 1,578,981 1,913,796
Deposits and other assets 16,325 29,071
Accounts payable (134,142) (885,921)
Accrued liabilities 851,323 700,442
Income tax payable (376,000) 376,000
Net cash provided by (used in) operating activities 6,061,778 (1,017,401)
INVESTING ACTIVITIES:    
Acquisition of businesses, net of cash acquired 0 (5,503,056)
Proceeds from the sale of property and equipment 653,857 153,500
Expenditures for intangible assets 0 (64,820)
Purchases of property and equipment (1,376,685) (151,937)
Net cash used in investing activities (722,828) (5,566,313)
FINANCING ACTIVITIES:    
Net borrowings under revolver loans 1,739,825 0
Issuance of common stock for cash, net of issuance costs 0 538,441
Payments on notes payable (17,109,250) (1,886,859)
Payments on notes payable, related party (4,495,825) 0
Payments on debt issue costs (415,757) 0
Payments of preferred stock dividends (1,917) (1,921)
Purchase of treasury stock (300,027)  
Contribution of noncontrolling interest 0 1,200,000
Payment for the purchase of the noncontrolling interest (2,000,000) 0
Proceeds from issuance of notes payable 15,287,078 1,247,185
Proceeds from issuance of convertible debt 0 100,000
Net cash provided by (used in) financing activities (7,295,873) 1,196,850
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,956,923) (5,386,864)
CASH AND CASH EQUIVALENTS, beginning of period 2,727,818 8,114,682
CASH AND CASH EQUIVALENTS, end of period 770,895 2,727,818
Supplemental cash flow disclosures:    
Interest paid 1,247,659 24,312
Income taxes paid 466,000 0
Non-cash changes in Fair Value of Assets Acquired - Marquis Industries    
Goodwill (800,000) 0
Intangible - Customer Relationships 439,039 0
Inventory 1,080,051 0
Prepaid expenses 114,304 0
Machinery & Equipment 2,659,104 0
Buildings & Land 1,081,470 0
Total Non-cash changes in Fair Value of Assets Acquired - Marquis Industries 4,573,968 0
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 959 959
Note payable issued for purchase of noncontrolling interest $ 500,000 $ 0