Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2017
Dec. 31, 2016
CURRENT ASSETS:    
Cash $ 53,185 $ 174,376
Accounts receivable 524,873 256,989
Costs and estimated earnings in excess of billings on uncompleted contracts 147,639 476,673
Prepaid expenses and other current assets 201,618 135,964
Total Current Assets 927,315 1,044,002
Property and equipment, net 71,940 66,491
OTHER ASSETS:    
Patents and trademarks, net 50,049 51,423
Total Other Assets 50,049 51,423
TOTAL ASSETS 1,049,304 1,161,916
CURRENT LIABILITIES:    
Accounts payable 897,607 842,787
Accounts payable - related parties 41,544 40,136
Commercial insurance/office equipment financing 147,701 46,368
Notes payable - related parties 518,136 577,716
Notes payable, net of discounts 798,756 87,210
Convertible notes payable, including premiums 193,950
Warrant derivative liability 2,203,487 793,099
Line of credit 36,452 38,019
Payroll taxes payable 703,532 444,476
Accrued expenses 1,249,641 1,218,105
Billings in excess of costs and estimated earnings on uncompleted contracts 221,128 219,625
Deferred revenue 413,974 675,171
Total Current Liabilities 7,231,958 5,176,662
Notes payable - related party 45,968
Notes payable, net of discounts 1,272,464 1,206,522
Total Liabilities 8,550,390 6,383,184
Series A redeemable convertible cumulative preferred stock, $10 stated value per share, 500,000 shares designated, 29,600 shares issued and outstanding at March 31, 2017 and December 31, 2016 ($307,840 and $301,920 liquidation value at March 31, 2017 and December 31, 2016, respectively) 307,840 301,920
Commitments and Contingencies (Note 5)
STOCKHOLDERS' DEFICIT:    
Preferred stock, $0.001 par value, 10,000,000 authorized, 9,500,000 available to be issued
Common stock: $0.001 par value; 500,000,000 shares authorized 1,894,923 and 1,892,020 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively 1,895 1,892
Additional paid-in capital 18,156,627 18,141,629
Total paid-in-capital 18,158,522 18,143,521
Accumulated deficit (25,819,448) (23,518,709)
Sub-total (7,660,926) (5,375,188)
Less: Treasury stock (3,280 shares of common stock) (148,000) (148,000)
Total Stockholders' Deficit (7,808,926) (5,523,188)
Total Liabilities and Stockholders' Deficit $ 1,049,304 $ 1,161,916