ExeLED (ELED) 10-Q 22 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 18, 2016
Document And Entity Information
Entity Registrant Name	Energie Holdings, Inc.
Entity Central Index Key	774,937
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		199,715,476
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 90,794	$ 17,987
Accounts receivable, net	20,797	8,551
Inventory	177,373	190,151
Prepaid expenses and other	51,466	52,759
Total current assets	340,430	269,448
Noncurrent assets:
Deposits	11,695	12,345
Total assets	352,125	281,793
Current liabilities:
Accounts payable	3,029,580	2,505,397
Accrued liabilities	1,388,132	1,076,040
Debt, current portion, net of discount and debt issuance costs	6,572,059	5,156,305
Total current liabilities	10,989,771	8,737,742
Debt, long-term portion	915,906	1,593,003
Total liabilities	11,905,677	10,330,745
Commitments and contingencies (Note 5)
Equity:
Preferred stock, $.0001 par value; 5,000,000 shares authorized; no shares issued and outstanding at June 30, 2016 or December 31, 2015
Common stock, $.0001 par value; 250,000,000 shares authorized; 157,973,762 and 113,914,718 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	15,596	11,191
Additional paid-in capital	2,536,721	2,446,196
Accumulated deficit	(14,105,869)	(12,506,339)
Total deficit	(11,553,552)	(10,048,952)
Total liabilities and equity	$ 352,125	$ 281,793

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	157,973,762	113,914,718
Common stock, shares outstanding	157,973,762	113,914,718

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Sales revenue	$ 206,592	$ 102,239	$ 305,147	$ 304,634
Cost of goods sold	(105,953)	(47,986)	(158,007)	(145,992)
Gross profit	100,639	54,253	147,140	158,642
Operating expenses:
Research and development	70,615	70,502	143,606	127,372
Sales and marketing	26,596	26,432	39,311	69,902
General and administrative	256,427	379,015	607,202	784,720
Total operating expenses	353,638	475,949	790,119	981,994
Loss from operations	(252,999)	(421,696)	(642,979)	(823,352)
Other income (expense):
Interest expense	(418,051)	(290,596)	(881,500)	(490,956)
Other	(37,894)	(7,261)	(75,051)	(17,530)
Other income (expense), net	(455,945)	(297,857)	(956,551)	(508,486)
Net loss	$ (708,944)	$ (719,553)	$ (1,599,530)	$ (1,331,838)
Net loss per common share Basic and diluted	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)
Weighted average common shares outstanding: Basic and diluted	135,528,338	60,281,130	126,788,863	57,436,497

Statements of Cash Flows

Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities:
Net loss	$ (1,599,530)	$ (1,331,838)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt issuance costs and debt discount	196,612	27,485
Common stock issued for services		40,400
Loss on conversion of debt	56,101
Changes in operating assets and liabilities (net of Share Exchange):
Accounts receivable	(12,246)	17,742
Inventory	12,778	5,518
Prepaid expenses	1,293	21,030
Deposits	650	(650)
Accounts payable	524,183	546,609
Accrued liabilities	314,121	229,831
Net cash used in operating activities	(506,038)	(443,873)
Financing Activities:
Proceeds from debt	815,116	889,250
Payments of debt	(236,271)	(467,138)
Net cash provided by financing activities	578,845	422,112
Net change in cash	72,807	(21,761)
Cash, beginning of period	17,987	43,879
Cash, end of period	90,794	22,118
Cash paid for:
Interest	267,698	209,198
Income taxes
Non-cash transactions:
Debt and accrued interest converted to common stock	$ 38,829	$ 33,943

1. Description of Business and

1. Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
1. Description of Business and Summary of Significant Accounting Policies	Note 1 — Description of Business and Summary of Significant Accounting Policies ExeLED Holdings Inc. was incorporated in the State of Delaware on October 20, 1986 under the name “Verilink Corporation.” We have also been known as Energie Holdings, Inc. and Alas Aviation Corp. We have two wholly-owned subsidiaries, Energie LLC (hereinafter referred to as “Energie”), and OELC, LLC. All references herein to “us,” “we,” “our,” “Holdings,” or the “Company” refer to ExeLED Holdings Inc. and its subsidiaries. Description of Business We are focused on acquiring and growing specialized LED lighting companies for the architecture and interior design markets for both commercial and residential applications. Our lighting products include both conventional fixtures and advanced solid-state technology that can integrate with digital controls and day-lighting to create energy efficiencies and a better visual environment. Our objective is to grow, innovate, and fully capture the rapidly growing lighting market opportunities associated with solid state lighting. Énergie was founded in 2001 and is engaged in the import and sale of specialized interior lighting solutions to the architecture and interior design markets in North America. Our headquarters is located in Wheat Ridge, Colorado, and we also maintain a production and assembly facility in Zeeland, Michigan. Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2015, has been derived from audited financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual audited financial statements and in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. In the opinion of management, such unaudited information includes all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of this interim information. All intercompany transactions have been eliminated in consolidation. Operating results and cash flows for interim periods are not necessarily indicative of results that can be expected for the entire year. The information included in this report should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015. Significant Accounting Policies In accordance with the FASB’s issuance of ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update) Going Concern As shown in the accompanying condensed consolidated financial statements, we had an equity deficit of $11,553,552 and a working capital deficit of $10,649,341 as of June 30, 2016, and have reported net losses of $1,599,530 and $1,331,838 for the six months ended June 30, 2016 and 2015, respectively. These factors raise substantial doubt regarding our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to further implement our business plan, attract additional capital and, ultimately, upon our ability to develop future profitable operations. We intend to fund our business development, acquisition endeavors and operations through equity and debt financing arrangements. However, there can be no assurance that these arrangements will be sufficient to fund our ongoing capital expenditures, working capital, and other cash requirements. The outcome of these matters cannot be predicted at this time. These matters raise substantial doubt about our ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. Additionally, current economic conditions in the United States and globally create significant challenges attaining sufficient funding. Certain prior year amounts have been reclassified to conform with the current year presentations. Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation. Recently Issued Accounting Pronouncements In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting Revenue Recognition (Topic 605) Extractive Activities—Oil and Gas (Topic 932) Revenue from Contracts with Customers (Topic 606) Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments

2. Accounts receivable

2. Accounts receivable	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
2. Accounts receivable	Note 2 — Accounts receivable The following is a summary of accounts receivable: June 30, 2016 December 31, 2015 Customer receivables $ 36,726 $ 21,431 Less: Allowance for uncollectible accounts (15,929 ) (12,880 ) $ 20,797 $ 8,551

3. Inventory

3. Inventory	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
3 Inventory	Note 3 — Inventory The following is a summary of inventory: June 30, 2016 December 31, 2015 Raw materials $ 335,564 $ 348,342 Less: reserve (158,191 ) (158,191 ) $ 177,373 $ 190,151

4. Debt

4. Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
4. Debt	Note 4 — Debt Debt is comprised of the following: Description Note June 30, December 31, 2016 2015 Line of credit A $ 47,000 $ 47,000 Note payable to distribution partner B 550,000 550,000 Investor debt C 371,507 267,787 Related party debt D 6,296,443 5,632,543 Other notes payable E 84,952 66,786 Cash draw notes F 175,455 204,423 Convertible promissory notes G 117,637 154,437 Total 7,642,994 6,922,976 Less: unamortized discount and debt issuance costs (155,029 ) (173,668 ) Debt, net of unamortized discount and debt issuance costs 7,487,965 6,749,308 Less: current portion (6,572,059 ) (5,156,305 ) Debt, long-term portion $ 915,906 $ 1,593,003 A – Line of Credit – B Note payable to distribution partner C Investor Debt – June 30, 2016 December 31, 2015 Interest Rate $ 87,787 $ 87,787 24 % 50,000 50,000 24 % 50,000 50,000 24 % 25,000 25,000 8 % 25,000 25,000 8 % 20,000 20,000 2 % 113,720 10,000 various $ 371,507 $ 267,787 D Related Parties Debt – June 30, 2016 December 31, 2015 Interest Rate D1 $ 4,635,865 $ 4,120,465 various D2 528,214 528,214 various D3 34,888 34,888 12 % D4 316,800 280,800 various D5 668,176 668,176 18 % D6 112,500 — 6 % Total $ 6,296,443 $ 5,632,543 D1 D2 D3 D4 D5 D6 E Other Notes Payable – F – Cash draw agreements G Convertible promissory notes – Debt issuance costs of $155,029 are being amortized over the life of the respective notes.

5. Commitments and Contingencie

5. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
5. Commitments and Contingencies	Note 5 — Commitments and Contingencies Current management discovered that the Company’s former management recorded various obligations to itself and to third parties for expenditures not deemed benefitting the Company or authorized by the Company’s sole director, as required. The amount of these unauthorized expenditures totaled $91,172, including $60,000 in management fees. These expenditures were reversed and are not part of the accompanying financial statements. While current management believes that none of the $91,172 is an obligation of ours, it is not known what representations were made to these vendors or whether we could, in fact, be eventually responsible to pay some or all of the indicated amount.

6. Subsequent events

6. Subsequent events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
6. Subsequent events	Note 6 — Subsequent Events On July 1, 2016, a convertible debt holder converted $4,200 of principal and $291 of accrued interest into 6,452,428 shares of our common stock. On July 13, 2016, a convertible debt holder converted $3,500 of principal and $252 of accrued interest into 6,468,310 shares of our common stock. On July 18, 2016, a convertible debt holder converted $3,750 of principal and $274 of accrued interest into 6,937,413 shares of our common stock. On July 25, 2016, a convertible debt holder converted $3,750 of principal and $279 of accrued interest into 6,947,327 shares of our common stock. On July 29, 2016, a convertible debt holder converted $3,500 of principal and $264 of accrued interest into 6,489,465 shares of our common stock. On August 9, 2016, a convertible debt holder converted $5,000 of principal and $389 of accrued interest into 8,446,771 shares of our common stock.

7. Net Loss Per Share

7. Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
7. Net Loss Per Share	Note 7 — Net Loss Per Share Basic net loss per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted net loss per share is computed similarly to basic net loss per share, except that it includes the potential dilution that could occur if dilutive securities are exercised. In a net loss position, however, potential securities are excluded, because they are considered anti-dilutive. The following table presents a reconciliation of the denominators used in the computation of net loss per share – basic and diluted: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net loss $ (708,944 ) $ (719,553 ) $ (1,599,530 ) $ (1,331,838 ) Weighted average outstanding shares of common stock 135,528,338 60,281,130 126,788,863 57,436,497 Dilutive effect of stock options and warrants — — — — Common stock and equivalents 135,528,338 60,281,130 126,788,863 57,436,497 Net loss per share – Basic and diluted $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.02 ) There are no dilutive instruments outstanding during the six months ended June 30, 2016 and 2015.

1. Description of Business an13

1. Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Descripton of Business	Description of Business We are focused on acquiring and growing specialized LED lighting companies for the architecture and interior design markets for both commercial and residential applications. Our lighting products include both conventional fixtures and advanced solid-state technology that can integrate with digital controls and day-lighting to create energy efficiencies and a better visual environment. Our objective is to grow, innovate, and fully capture the rapidly growing lighting market opportunities associated with solid state lighting. Énergie was founded in 2001 and is engaged in the import and sale of specialized interior lighting solutions to the architecture and interior design markets in North America. Our headquarters is located in Wheat Ridge, Colorado, and we also maintain a production and assembly facility in Zeeland, Michigan.
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated balance sheet as of December 31, 2015, has been derived from audited financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual audited financial statements and in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. In the opinion of management, such unaudited information includes all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of this interim information. All intercompany transactions have been eliminated in consolidation. Operating results and cash flows for interim periods are not necessarily indicative of results that can be expected for the entire year. The information included in this report should be read in conjunction with our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015.
Significant Accounting Policies	Significant Accounting Policies In accordance with the FASB’s issuance of ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements—Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (SEC Update)
Going Concern	Going Concern As shown in the accompanying condensed consolidated financial statements, we had an equity deficit of $11,553,552 and a working capital deficit of $10,649,341 as of June 30, 2016, and have reported net losses of $1,599,530 and $1,331,838 for the six months ended June 30, 2016 and 2015, respectively. These factors raise substantial doubt regarding our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to further implement our business plan, attract additional capital and, ultimately, upon our ability to develop future profitable operations. We intend to fund our business development, acquisition endeavors and operations through equity and debt financing arrangements. However, there can be no assurance that these arrangements will be sufficient to fund our ongoing capital expenditures, working capital, and other cash requirements. The outcome of these matters cannot be predicted at this time. These matters raise substantial doubt about our ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. Additionally, current economic conditions in the United States and globally create significant challenges attaining sufficient funding. Certain prior year amounts have been reclassified to conform with the current year presentations.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to conform with the current year presentation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting Revenue Recognition (Topic 605) Extractive Activities—Oil and Gas (Topic 932) Revenue from Contracts with Customers (Topic 606) Derivatives and Hedging (Topic 815) Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or Equity In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments (Topic 326): Measurement of Credit Losses on Financial Instruments

2. Accounts receivable (Tables)

2. Accounts receivable (Tables)	6 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Accounts receivable	June 30, 2016 December 31, 2015 Customer receivables $ 36,726 $ 21,431 Less: Allowance for uncollectible accounts (15,929 ) (12,880 ) $ 20,797 $ 8,551

3. Inventory (Tables)

3. Inventory (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Inventory	June 30, 2016 December 31, 2015 Raw materials $ 335,564 $ 348,342 Less: reserve (158,191 ) (158,191 ) $ 177,373 $ 190,151

4. Debt (Tables)

4. Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt	Description Note June 30, December 31, 2016 2015 Line of credit A $ 47,000 $ 47,000 Note payable to distribution partner B 550,000 550,000 Investor debt C 371,507 267,787 Related party debt D 6,296,443 5,632,543 Other notes payable E 84,952 66,786 Cash draw notes F 175,455 204,423 Convertible promissory notes G 117,637 154,437 Total 7,642,994 6,922,976 Less: unamortized discount and debt issuance costs (155,029 ) (173,668 ) Debt, net of unamortized discount and debt issuance costs 7,487,965 6,749,308 Less: current portion (6,572,059 ) (5,156,305 ) Debt, long-term portion $ 915,906 $ 1,593,003
Investor Debt	June 30, 2016 December 31, 2015 Interest Rate $ 87,787 $ 87,787 24 % 50,000 50,000 24 % 50,000 50,000 24 % 25,000 25,000 8 % 25,000 25,000 8 % 20,000 20,000 2 % 113,720 10,000 various $ 371,507 $ 267,787
Related Party Debt	June 30, 2016 December 31, 2015 Interest Rate D1 $ 4,635,865 $ 4,120,465 various D2 528,214 528,214 various D3 34,888 34,888 12 % D4 316,800 280,800 various D5 668,176 668,176 18 % D6 112,500 — 6 % Total $ 6,296,443 $ 5,632,543

7. Net Loss Per Share (Tables)

7. Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Net loss $ (708,944 ) $ (719,553 ) $ (1,599,530 ) $ (1,331,838 ) Weighted average outstanding shares of common stock 135,528,338 60,281,130 126,788,863 57,436,497 Dilutive effect of stock options and warrants — — — — Common stock and equivalents 135,528,338 60,281,130 126,788,863 57,436,497 Net loss per share – Basic and diluted $ (0.01 ) $ (0.01 ) $ (0.01 ) $ (0.02 )

1. Description of Business an18

1. Description of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Working Capital Deficit	$ 10,649,341		$ 10,649,341
Net Income Loss	$ (708,944)	$ (719,553)	$ (1,599,530)	$ (1,331,838)

2. Accounts receivable - Receiv

2. Accounts receivable - Receivable (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Customer receivables	$ 36,726	$ 21,431
Less: Allowance for uncollectible accounts	(15,929)	(12,880)
Receivables, Net	$ 20,797	$ 8,551

3. Inventory - Inventory (Detai

3. Inventory - Inventory (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 335,564	$ 348,342
Less: Reserve	(158,191)	(158,191)
Inventory, Net	$ 177,373	$ 190,151

4. Debt - Debt (Details)

4. Debt - Debt (Details) - USD ($)		Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Line of credit	[1]	$ 47,000	$ 47,000
Note payable to distribution partner	[2]	550,000	550,000
Investor debt	[3]	371,507	267,787
Related party debt	[4]	6,296,443	5,632,543
Other notes payable	[5]	84,952	66,786
Cash draw agreements	[6]	175,455	204,423
Convertible promissory notes	[7]	117,637	154,437
Total		7,642,994	6,922,976
Less: unamortized discount and debt issuance costs		(155,029)	(173,668)
Debt, net of unamortized discount and debt issuance costs		7,487,965	6,749,308
Less: current portion		6,572,059	5,156,305
Debt, long-term portion		$ 915,906	$ 1,593,003
[1]	Line of Credit - We utilized this entire bank line of credit for working capital purposes. The outstanding obligation is due on demand, has a stated initial interest rate of 10.5% that is subject to adjustment, and is guaranteed by our majority shareholder/CEO. Energie and our CEO (collectively, "the defendants") were served with a summons and complaint, wherein the bank brought an action to collect the amount due, including interest, costs and attorney's fees. The parties to this action have entered into a settlement whereby the defendants agreed to pay to the bank the sum of $59,177 on or before April 30, 2016. The bank requested a judgment against both defendants jointly and severally for $59,177 pursuant to the settlement agreement. The defendants are currently engaged in settlement discussions with the plaintiff in this matter and while no assurance can be provided, we believe our settlement efforts will be successful.
[2]	Note payable to distribution partner – Note payable to a significant European distribution partner, entered into in October 2014, bearing interest at 5% payable quarterly, with principal payable monthly through September 2019. The 2014 note payable aggregated the 2007 promissory note, accrued interest and accounts payable.
[3]	Investor Debt – Notes payable to lenders having an ownership interest in Holdings at June 30, 2016 and December 31, 2015. These loans are not collateralized. The following summarizes the terms and balances of the investor debt:
[4]	Related Parties Debt – The following summarizes notes payable to related parties:
[5]	Other Notes Payable – Represents the outstanding principal balance on four separate notes bearing interest at 6 - 18% annually. In the event we receive proceeds as the beneficiary of a life insurance policy covering our majority shareholder/CEO, repayment of principal and interest is due on these notes prior to using the proceeds for any other purpose.
[6]	Cash draw agreements – Under these agreements, the lender advances us the principal balance and then automatically withdraws a stated amount each business day. Accordingly, there is no stated interest rate. The total remaining daily payments due under these arrangements was $219,897 as of June 30, 2016. The maturity dates of the agreements range from July to September 2016.
[7]	Convertible promissory notes – Represents the outstanding principal balance on two separate convertible promissory notes payable to an entity with interest of 8% annually, due in August 2016. During the third quarter of 2015, the current holder of the notes purchased all of our similar outstanding convertible notes from another entity and consolidated those notes into two new notes. At the option of the holder, the notes may be settled in cash or converted into shares of our common stock at any time beginning 180 days from the date of the notes at a price equal to 61% of the average closing bid price of our common stock during the 10 trading days immediately preceding the date of conversion. In the event we fail to pay the notes when they become due, the balance due under the notes incurs interest at the rate of 22% per annum. The notes contain additional terms and conditions normally included in instruments of this kind, including a right of first refusal wherein we have granted the holders the right to match the terms of any future financing in which we engage on the same terms and contemplated in such future financing. We estimate that the fair value of the conversion feature is minimal, so no value has been assigned to the beneficial conversion feature. During the six months ended June 30, 2016, $36,800 of principal and $2,029 of accrued interest was converted into 44,059,044 shares of common stock. We also recorded a loss on conversion of debt of $56,101 related to these transactions.

4. Debt - Investor Debt (Detail

4. Debt - Investor Debt (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Investor Debt Balances	$ 7,642,994	$ 6,922,976
Investor Debt 1
Investor Debt Balances	$ 87,787	$ 87,787
Investor Debt, Interest Rate	24.00%	24.00%
Investor Debt 2
Investor Debt Balances	$ 50,000	$ 50,000
Investor Debt, Interest Rate	24.00%	24.00%
Investor Debt 3
Investor Debt Balances	$ 50,000	$ 50,000
Investor Debt, Interest Rate	24.00%	24.00%
Investor Debt 4
Investor Debt Balances	$ 25,000	$ 25,000
Investor Debt, Interest Rate	8.00%	8.00%
Investor Debt 5
Investor Debt Balances	$ 25,000	$ 25,000
Investor Debt, Interest Rate	8.00%	8.00%
Investor Debt 6
Investor Debt Balances	$ 20,000	$ 20,000
Investor Debt, Interest Rate	2.00%	2.00%
Investor Debt 7
Investor Debt Balances	$ 113,720	$ 10,000
Investor Debt Total
Investor Debt Balances	$ 371,507	$ 267,787

4. Debt - Related Party Debt (D

4. Debt - Related Party Debt (Details) - USD ($)		6 Months Ended	12 Months Ended
		Jun. 30, 2016	Dec. 31, 2015
D3
Related Party Debt	[1]	$ 34,888	$ 34,888
Related Party Debt, Interest Rate		12.00%	12.00%
D5
Related Party Debt	[2]	$ 668,176	$ 668,176
Related Party Debt, Interest Rate		18.00%	18.00%
D6
Related Party Debt	[3]	$ 112,500
Related Party Debt, Interest Rate		6.00%	6.00%
D1
Related Party Debt	[4]	$ 4,635,865	$ 4,120,465
D2
Related Party Debt	[5]	528,214	528,214
D4
Related Party Debt	[6]	316,800	280,800
Related Party Total
Related Party Debt		$ 6,296,443	$ 5,632,543
[1]	Note payable to our chief executive officer (“CEO”), entered into in December 2014, with monthly principal and interest payable through December 2016.
[2]	Notes payable to the consulting firm that employs our Chief Financial Officer, entered into in June 2015. These notes aggregated the previous accounts payable and accrued interest due to the consulting firm. Beginning January 1, 2016, the notes are convertible into shares of our common stock at a conversion rate of 75% of the volume weighted average market price of our stock over the 20 days preceding the notification of conversion. We determined that this conversion feature did not meet the requirements to be treated as a derivative; however, we did determine it was a beneficial conversion feature. Accordingly, we recorded a debt discount of $217,725, which was amortized through interest expense.
[3]	Notes payable to the principal shareholders of Symbiote, entered into in April 2016, with principal and interest payments due upon a specific event or upon demand.
[4]	Notes payable to Symbiote, Inc. (“Symbiote”), entered into from December 2014 to June 2016, with monthly principal and interest payable through November 2017. The 2014 notes aggregated the previous notes payable, accrued interest and accounts payable. Symbiote holds a large ownership percentage in Holdings, is the lessor of our manufacturing facility, and provides our payroll services.
[5]	Notes payable to an executive vice president, entered into from December 2014 through December 2015, with monthly principal and interest payable through November 2017. The 2014 note aggregated previous notes payable, accrued interest and accounts payable.
[6]	Notes payable to the spouse of our CEO, entered into from September 2013 to October 2015, with principal and interest payments due upon a specific event or upon demand.

7. Net Loss Per Share - Net Los

7. Net Loss Per Share - Net Loss Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net loss available for stockholders	$ (708,944)	$ (719,553)	$ (1,599,530)	$ (1,331,838)
Weighted average outstanding shares of common stock	135,528,338	60,281,130	126,788,863	57,436,497
Dilutive effect of securities
Common stock and equivalents	$ 135,528,338	$ 60,281,130	$ 126,788,863	$ 57,436,497
Net loss per share - Basic and diluted	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.02)