For the year

ended

December 31,

2014

For the year

ended

December 31,

2013

Cash paid for interest

$

194,447

$

107,913

Cash paid for income taxes

$

132

$

100

Series C Dividend payable in accrued expenses

$

--

$

22,668

Series D Dividend payable in accrued expenses

$

45,590

$

44,018

Non-Cash investing and financing transactions

Repayment of unsecured notes payable and accrued interest with issuance of common shares

$

2,506,982

$

--

Repayment of senior secured notes payable with issuance of Series D preferred shares

$

--

$

749,982

Financing the purchase of equipment under a 4 year loan agreement

$

49,204 

$

--

Financing the purchase of equipment under a 5 year loan agreement

$

--

$

83,507

Deemed dividend and inducement premium on conversion of Series D preferred shares to common shares

$

1,332,376

$

--

Beneficial conversion feature on warrants issued in conjunction with Series D preferred shares

$

51,110   

$

176,729