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General Cannabis Corp – ‘10-K’ for 12/31/16 – ‘EX-101.INS’

On:  Thursday, 3/30/17, at 7:14pm ET   ·   As of:  3/31/17   ·   For:  12/31/16   ·   Accession #:  1398432-17-58   ·   File #:  0-54457

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  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 3/31/17  General Cannabis Corp             10-K       12/31/16   94:5.5M                                   Int’l Print Group/FA

Annual Report   —   Form 10-K   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                       HTML    613K 
 2: EX-14.1     Code of Ethics                                      HTML     28K 
 3: EX-21.1     Subsidiaries List                                   HTML     24K 
 4: EX-31.1     Certification Pursuant to Section 302               HTML     30K 
 5: EX-31.2     Certification Pursuant to Section 302               HTML     30K 
 6: EX-32.1     Certification Pursuant to Section 906               HTML     28K 
13: R1          Document And Entity Information                     HTML     54K 
14: R2          Consolidated Balance Sheets                         HTML    118K 
15: R3          Consolidated Balance Sheets (Parentheticals)        HTML     43K 
16: R4          Consolidated Statements of Operations               HTML     82K 
17: R5          Consolidated Statements of Cash Flows               HTML    120K 
18: R6          Consolidated Statements of Changes in               HTML    126K 
                Stockholders? Equity (Deficit)                                   
19: R7          Nature of Operations, History and Presentation      HTML     71K 
20: R8          Business Acquisitions                               HTML     48K 
21: R9          Receivables                                         HTML     34K 
22: R10         Property and Equipment                              HTML     35K 
23: R11         Intangible Assets and Goodwill                      HTML     41K 
24: R12         Debt                                                HTML     51K 
25: R13         Accrued Stock Payable                               HTML     45K 
26: R14         Derivative Warrant Liability                        HTML     52K 
27: R15         Commitments and Contingencies                       HTML     32K 
28: R16         Deferred Taxes                                      HTML     41K 
29: R17         Stockholders' Equity                                HTML     99K 
30: R18         Net Loss Per Share                                  HTML     34K 
31: R19         Subsequent Events                                   HTML     28K 
32: R20         Segment Information                                 HTML     57K 
33: R21         Accounting Policies, by Policy (Policies)           HTML    121K 
34: R22         Business Acquisitions (Tables)                      HTML     46K 
35: R23         Receivables (Tables)                                HTML     38K 
36: R24         Property and Equipment (Tables)                     HTML     34K 
37: R25         Intangible Assets and Goodwill (Tables)             HTML     38K 
38: R26         Debt (Tables)                                       HTML     38K 
39: R27         Accrued Stock Payable (Tables)                      HTML     41K 
40: R28         Derivative Warrant Liability (Tables)               HTML     58K 
41: R29         Deferred Taxes (Tables)                             HTML     41K 
42: R30         Stockholders' Equity (Tables)                       HTML     91K 
43: R31         Net Loss Per Share (Tables)                         HTML     31K 
44: R32         Segment Information (Tables)                        HTML     56K 
45: R33         Nature of Operations, History and Presentation      HTML     85K 
                (Details)                                                        
46: R34         Business Acquisitions (Details)                     HTML     68K 
47: R35         Business Acquisitions (Details) - IPG Acquisition,  HTML     36K 
                Aggregate Consideration                                          
48: R36         Business Acquisitions (Details) - IPG Acquisition,  HTML     37K 
                Purchase Price Allocation                                        
49: R37         Business Acquisitions (Details) - IPG Acquisition,  HTML     35K 
                Pro Forma Effects                                                
50: R38         Business Acquisitions (Details) - Chiefton          HTML     36K 
                Acquisition, Aggregate Consideration                             
51: R39         Business Acquisitions (Details) - Chiefton          HTML     33K 
                Acquisition, Purchase Price Allocation                           
52: R40         Receivables (Details)                               HTML     37K 
53: R41         Receivables (Details) - Schedule of Accounts        HTML     34K 
                Receivable                                                       
54: R42         Receivables (Details) - Schedule of Account         HTML     39K 
                Receivable, Future Minimum Payments                              
55: R43         Property and Equipment (Details)                    HTML     28K 
56: R44         Property and Equipment (Details) - Schedule of      HTML     45K 
                Property, Plant, and Equipment                                   
57: R45         Intangible Assets and Goodwill (Details)            HTML     36K 
58: R46         Intangible Assets and Goodwill (Details) -          HTML     48K 
                Schedule of Intangible Assets                                    
59: R47         DEBT (Details) - Infinity Note                      HTML     37K 
60: R48         DEBT (Details) - 12% Notes                          HTML     78K 
61: R49         DEBT (Details) - 8% Notes                           HTML     43K 
62: R50         DEBT (Details) - 10% Notes                          HTML     78K 
63: R51         DEBT (Details) - 14% Greenhouse Mortgage            HTML     50K 
64: R52         DEBT (Details) - 8.5% Pueblo Mortgage               HTML     40K 
65: R53         DEBT (Details) - 12% Convertible Notes              HTML     61K 
66: R54         DEBT (Details) - Line of Credit - Related Party     HTML     50K 
67: R55         ACCRUED STOCK PAYABLE (Details) - Feinsod           HTML     46K 
                Agreement                                                        
68: R56         ACCRUED STOCK PAYABLE (Details) - Architectural     HTML     33K 
                Services                                                         
69: R57         ACCRUED STOCK PAYABLE (Details) - Employment        HTML     44K 
                Agreement                                                        
70: R58         ACCRUED STOCK PAYABLE (Details) - Consulting        HTML     30K 
                Agreement                                                        
71: R59         ACCRUED STOCK PAYABLE (Details) - Changes in        HTML     59K 
                Accrued Common Stock Payable                                     
72: R60         Derivative Warrant Liability (Details)              HTML     53K 
73: R61         Derivative Warrant Liability (Details) - Schedule   HTML     39K 
                of Assumptions for Determining Derivative Warrant                
                Liability Fair Value                                             
74: R62         Derivative Warrant Liability (Details) - Schedule   HTML     38K 
                of Derivative Warrant Liability Fair Value                       
75: R63         Derivative Warrant Liability (Details) - Schedule   HTML     38K 
                of Derivative Warrant Liability Gain (Loss)                      
76: R64         Derivative Warrant Liability (Details) - Schedule   HTML     44K 
                of Derivative Warrant Liability Gain (Loss) and                  
                Cumulative Expense                                               
77: R65         Commitments and Contingencies (Details)             HTML     42K 
78: R66         DEFERRED TAXES (Details) - Schedule of Deferred     HTML     40K 
                Tax Assets                                                       
79: R67         DEFERRED TAXES (Details) - Schedule of Effective    HTML     46K 
                Income Tax Rate Reconciliation                                   
80: R68         STOCKHOLDERS' EQUITY (Details) - Employee Stock     HTML     47K 
                Options                                                          
81: R69         STOCKHOLDERS' EQUITY (Details) - Warrants for       HTML     41K 
                Consulting Services                                              
82: R70         STOCKHOLDERS' EQUITY (Details) - DB Option          HTML     33K 
                Agreement Warrants                                               
83: R71         STOCKHOLDERS' EQUITY (Details) - IPG Acquisition    HTML     37K 
                Warrants                                                         
84: R72         STOCKHOLDERS' EQUITY (Details) - 2013 Warrants      HTML     35K 
85: R73         STOCKHOLDERS' EQUITY (Details) - Share-based        HTML     38K 
                expense                                                          
86: R74         STOCKHOLDERS' EQUITY (Details) - Share-based        HTML     74K 
                compensation costs, Fair Value Assumptions                       
87: R75         STOCKHOLDERS' EQUITY (Details) - Schedule of        HTML     82K 
                Stockholders' Equity, Warrants or Rights                         
88: R76         NET LOSS PER SHARE (Details) - Schedule of          HTML     42K 
                Dilutive Effect on Earnings Per Share                            
89: R77         Subsequent Events (Details)                         HTML     43K 
90: R78         SEGMENT INFORMATION (Details) - Schedule of         HTML     49K 
                Segment Reporting Information, by Segment                        
91: R79         SEGMENT INFORMATION (Details) - Schedule of Total   HTML     40K 
                Assets by Segment                                                
93: XML         IDEA XML File -- Filing Summary                      XML    175K 
92: EXCEL       IDEA Workbook of Financial Reports                  XLSX    100K 
 7: EX-101.INS  XBRL Instance -- cann-20161231                       XML   1.42M 
 9: EX-101.CAL  XBRL Calculations -- cann-20161231_cal               XML    117K 
10: EX-101.DEF  XBRL Definitions -- cann-20161231_def                XML   1.05M 
11: EX-101.LAB  XBRL Labels -- cann-20161231_lab                     XML   1.09M 
12: EX-101.PRE  XBRL Presentations -- cann-20161231_pre              XML    998K 
 8: EX-101.SCH  XBRL Schema -- cann-20161231                         XSD    259K 
94: ZIP         XBRL Zipped Folder -- 0001398432-17-000058-xbrl      Zip    170K 


‘EX-101.INS’   —   XBRL Instance — cann-20161231


This Exhibit is an XBRL XML File.


                                                                                                                                                                                
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<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 1.   NATURE OF OPERATIONS, HISTORY AND PRESENTATION</b></p><br/><p style="margin:0px"><b>Nature of Operations</b></p><br/><p style="margin:0px">General Cannabis Corp, a Colorado Corporation (the “Company,” “we,” “us,” “our,” or “GCC”) (formerly, Advanced Cannabis Solutions, Inc.), was incorporated on June 3, 2013, and provides services and products to the regulated cannabis industry.  On April 28, 2015, our common stock was uplisted and on May 6, 2015, resumed quotation on the OTC Market’s OTCQB.  Our operations are segregated into the following four segments:</p><br/><p style="margin:0px"><font style="text-decoration:underline">Security and Cash Transportation Services (“Security Segment”)</font></p><br/><p style="margin:0px">In March 2015, we acquired substantially all of the assets of Iron Protection Group, LLC, a Colorado limited liability company, and will continue to do business as “Iron Protection Group.” Iron Protection Group, or IPG, provides advanced security, including on-site professionals, video surveillance and cash transport, to licensed cannabis cultivators and retail shops.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Marketing Consulting and Apparel (“Marketing Segment”)</font></p><br/><p style="margin:0px">Chiefton Design provides design, branding and marketing strategy consulting services to the cannabis industry.  We assist clients in developing a comprehensive marketing strategy, as well as designing and sourcing client-specific apparel and products.</p><br/><p style="margin:0px">Chiefton’s apparel business, Chiefton Supply, strives to create innovative, unique cannabis-inspired t-shirts, hats, hoodies and accessories.  Our apparel is sold through our on-line shop, cannabis retailers, and specialty t-shirt and gift shops.  The apparel sold by Chiefton is purchased and screen printed by third parties, for which there are numerous suppliers. </p><br/><p style="margin:0px"><font style="text-decoration:underline">Operations Consulting and Products (“Operations Segment”)</font></p><br/><p style="margin:0px">Through Next Big Crop (“NBC”), we deliver comprehensive consulting services to the cannabis industry that include obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations. Our business plan for NBC is based on the future growth of the regulated cannabis market in the United States.</p><br/><p style="margin:0px">NBC oversees our wholesale equipment and supply business, operated under the name “GC Supply,” which provides turnkey sourcing and stocking services to cultivation, retail and infused products manufacturing facilities. Our products include infrastructure, equipment, consumables, and compliance packaging.  GC Supply operates out of a leased, 1,800 square foot warehouse located in Colorado Springs, Colorado.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Finance and Real Estate (“Finance Segment”)</font></p><br/><p style="margin:0px"><i>Real Estate Leasing</i></p><br/><p style="margin:0px">We own a cultivation property in a suburb of Pueblo, Colorado, consisting of approximately three acres of land, which currently includes a 5,000 square foot steel building and a parking lot. The property is zoned for cultivating cannabis and is leased to a medical cannabis grower until December 31, 2022.</p><br/><p style="margin:0px">Our real estate leasing business plan includes the potential future acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners for their operations. Management anticipates that these facilities would range in size from 5,000 to 50,000 square feet. These facilities would only be leased to tenants that possess the requisite state licenses to operate cultivation facilities. The leases with the tenants would include certain requirements that permit us to continually evaluate our tenants’ compliance with applicable laws and regulations.</p><br/><p style="margin:0px"><i>Shared Office Space, Networking and Event Services</i></p><br/><p style="margin:0px">In October 2014, we purchased a former retail bank located at 6565 East Evans Avenue, Denver, Colorado 80224, which has been branded as “The Greenhouse”. The building is a 16,056 square foot facility, which we use as our corporate headquarters.</p><br/><p style="margin:0px">The Greenhouse has approximately 10,000 square feet of existing office space and 5,000 square feet on its ground floor that is dedicated to a consumer banking design. We continue to assess the opportunity to lease shared workspace for entrepreneurs, professionals and others serving the cannabis industry. Clients would be able to lease space to use as offices, meeting rooms, lecture, educational and networking facilities, and individual workstations.  We expect to continue the renovation of The Greenhouse in 2017.</p><br/><p style="margin:0px; page-break-before:always">We plan to continue to acquire commercial real estate and lease office space to participants in the cannabis industry. These participants may include media, internet, packaging, lighting, cultivation supplies and financial services-related companies. In exchange for certain services that may be provided to these tenants, we expect to receive rental income in the form of cash. In certain cases, we may acquire equity interests or provide debt capital to these businesses.</p><br/><p style="margin:0px"><i>Industry Finance</i></p><br/><p style="margin:0px">Our industry finance strategy includes evaluating opportunities to make direct term loans or to provide revolving lines of credit to businesses involved in the cultivation and sale of cannabis and related products.  These loans would generally be secured to the maximum extent permitted by law.  We believe there is a significant demand for this type of financing.  We are assessing other finance services including customized finance, capital formation and banking, for participants in the cannabis industry.</p><br/><p style="margin:0px"><b>Basis of Presentation</b></p><br/><p style="margin:0px">The accompanying consolidated financial statements include the results of GCC, and its five wholly-owned subsidiary companies: (a) ACS Colorado Corp., a Colorado corporation formed in 2013; (b) Advanced Cannabis Solutions Corporation, a Colorado corporation formed in 2013; (c) 6565 E. Evans Avenue LLC, a Colorado limited liability company formed in 2014; (d)  General Cannabis Capital Corporation, a Colorado corporation formed in 2015; and (e) GC Security LLC, a Colorado limited liability company formed in 2015.  Advanced Cannabis Solutions Corporation has one wholly-owned subsidiary company, ACS Corp., which was formed in Colorado on June 6, 2013.  Intercompany accounts and transactions have been eliminated.</p><br/><p style="margin:0px">The preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result.</p><br/><p style="margin:0px">Certain reclassifications have been made to the prior period segment reporting to conform to the current period presentation related to now including GC Supply in our Operations Segment. The reclassifications had no effect on net loss, total assets, or total stockholders’ equity (deficit).</p><br/><p style="margin:0px"><b>Going Concern</b></p><br/><p style="margin:0px">The consolidated financial statements have been prepared on a going concern basis, which assumes we will be able to realize our assets and discharge our liabilities in the normal course of business for the foreseeable future.  The ability to continue as a going concern is dependent upon our generating profitable operations in the future and / or obtaining the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. Management believes that actions presently being taken to further implement its business plan and generate additional revenues provide opportunity for us to continue as a going concern.  While we believe in the viability of our strategy to generate additional revenues and our ability to raise additional funds, there can be no assurances to that effect.</p><br/><p style="margin:0px">We had an accumulated deficit of $49,227,055 at December 31, 2016, and further losses are anticipated in the development of our business. Accordingly, there is substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.</p><br/><p style="margin:0px"><b>Significant Accounting Policies</b></p><br/><p style="margin:0px"><font style="text-decoration:underline">Cash and Cash Equivalents</font></p><br/><p style="margin:0px">Cash and cash equivalents include cash on hand, deposits with banks, and investments that are highly liquid and have maturities of three months or less at the date of purchase.  We maintain our cash balances in financial institutions that, from time to time, may exceed amounts insured by the Federal Deposit Insurance Corporation (up to $250,000 as of December 31, 2016).</p><br/><p style="margin:0px"><font style="text-decoration:underline">Inventory</font></p><br/><p style="margin:0px">Our inventory consists of finished goods, including apparel and supplies for the cannabis market.  Inventory is stated at the lower of cost or market, using the first-in, first-out method (“FIFO”) to determine cost. We monitor inventory cost compared to selling price in order to determine if a lower of cost or market reserve is necessary.  For the years ended December 31, 2016 and 2015, cost of goods sold included $0 and $75,048, respectively, of expense for inventory adjusted down to market value.</p><br/><p style="margin:0px; page-break-before:always"><font style="text-decoration:underline">Property and Equipment</font></p><br/><p style="margin:0px">Property and equipment are recorded at historical cost.  The cost of maintenance and repairs, which are not significant improvements, are expensed when incurred.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets:  thirty years for buildings, the lesser of five years or the life of the lease for leasehold improvements, and three to five years for furniture, fixtures and equipment.  Land is not depreciated.  </p><br/><p style="margin:0px"><font style="text-decoration:underline">Business Combinations</font></p><br/><p style="margin:0px">Amounts paid for acquisitions are allocated to the assets acquired and liabilities assumed based on their estimated fair value at the date of acquisition.  The fair value of identifiable intangible assets is based on detailed valuations that use information and assumptions provided by management, including expected future cash flows. We allocate any excess purchase price over the fair value of the net assets and liabilities acquired to goodwill.  Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Intangible Assets and Goodwill</font></p><br/><p style="margin:0px">Goodwill is the cost of an acquisition less the fair value of the net assets of the acquired business.</p><br/><p style="margin:0px">Intangible assets consist primarily of customer relationships, non-compete agreements with key employees, and marketing-related intangibles. Our intangible assets are being amortized on a straight-line basis over a period of two to ten years.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Impairment of Long-lived Assets and Goodwill</font></p><br/><p style="margin:0px">We evaluate goodwill for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying amount.  The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill.</p><br/><p style="margin:0px">We periodically evaluate whether the carrying value of property, equipment and intangible assets has been impaired when circumstances indicate the carrying value of those assets may not be recoverable.  The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  If the carrying value is not recoverable, the impairment loss is measured as the excess of the asset’s carrying value over its fair value.</p><br/><p style="margin:0px">Our impairment analyses require management to apply judgment in estimating future cash flows as well as asset fair values, including forecasting useful lives of the assets, assessing the probability of different outcomes, and selecting the discount rate that reflects the risk inherent in future cash flows. If the carrying value is not recoverable, we assess the fair value of long-lived assets using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third party comparable sales and discounted cash flow models.  If actual results are not consistent with our assumptions and estimates, or our assumptions and estimates change due to new information, we may be exposed to an impairment charge in the future.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Debt</font></p><br/><p style="margin:0px">We issue debt that may have separate warrants, conversion features, or no equity-linked attributes.</p><br/><p style="margin:0px"><i>Debt with warrants</i> – When we issue debt with warrants, we treat the warrants as a debt discount, record as a contra-liability against the debt, and amortize the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations.  When the warrants do not have complex terms, the offset to the contra-liability is recorded as additional paid in capital in our consolidated balance sheet.  When we issue debt with warrants that have complex terms, such as a clause requiring repricing, the warrants are considered to be a derivative that is recorded as a liability at fair value.  If the initial value of the warrant derivative liability is higher than the fair value of the associated debt, the excess is recognized immediately as interest expense.  The warrant derivative liability is adjusted to its fair value at the end of each reporting period, with the change being recorded as expense or gain.  If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statement of operations.  The debt is treated as conventional debt.</p><br/><p style="margin:0px; page-break-before:always">We determine the value of the non-complex warrants using the Black-Scholes Option Pricing Model (“Black-Scholes”) using the stock price on the date of issuance, the risk free interest rate associated with the life of the debt, and the volatility of our stock.  For warrants that result in recording derivatives, we use the binomial model to estimate their fair value.  The derivative warrant liability is a level three fair value measurement.</p><br/><p style="margin:0px"><i>Convertible debt</i><i>derivative treatment </i>– When we issue debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows:  a) one or more underlyings, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity.  The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in stockholders’ equity in its statement of financial position.</p><br/><p style="margin:0px">If the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the convertible debt derivative using Black-Scholes upon the date of issuance.  If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense.  Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt.  The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the consolidated statement of operations.  The debt discount is amortized over the life of the debt.</p><br/><p style="margin:0px"><i>Convertible debt – beneficial conversion feature</i> – If the conversion feature is not treated as a derivative, we assess whether it is a beneficial conversion feature (“BCF”).  A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date.  This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued.  The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible, and is recorded as additional paid in capital and as a debt discount in the consolidated balance sheet.  We amortize the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statement of operations.  If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statement of operations.</p><br/><p style="margin:0px">If the conversion feature does not qualify for either derivative treatment or as a BCF, the convertible debt is treated as traditional debt.</p><br/><p style="margin:0px"><i>Modification of debt instruments –</i>  Modifications or exchanges of debt that are not considered to be a troubled debt restructuring, are considered extinguishments if the terms of the new debt and the original instrument are substantially different.  The instruments are considered substantially different when the present value of the cash flows under the terms of the new debt instrument are at least 10% different from the present value of the remaining cash flows under the terms of the original instrument.  The fair value of non-cash consideration associated with the new debt instrument, such as warrants, are included as a day one cash flow in the 10% cash flow test.  If the original and new debt instruments are substantially different, the original debt is derecognized and the new debt is initially recorded at fair value, with the difference recognized as an extinguishment gain or loss.  If the original and new debt instruments are not substantially different, the new effective interest rate is applied to the modified agreement based on the original terms and the increase, if any, in fair value under the modified agreement. </p><br/><p style="margin:0px"><font style="text-decoration:underline">Fair Value Measurements</font></p><br/><p style="margin:0px">Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:</p><br/><p style="margin:0px">Level 1 – Quoted prices in active markets for identical assets or liabilities.</p><br/><p style="margin:0px">Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</p><br/><p style="margin:0px">Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.</p><br/><p style="margin:0px; page-break-before:always">Our financial instruments include cash, accounts receivable, note receivable, accounts payables and tenant deposits. The carrying values of these financial instruments approximate their fair value due to their short maturities.  The carrying amount of our debt approximates fair value because the interest rates on these instruments approximate the interest rate on debt with similar terms available to us.  Our derivative liability was adjusted to fair market value at the end of each reporting period, using Level 3 inputs.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Revenue Recognition</font></p><br/><p style="margin:0px">We recognize revenue when the four revenue recognition criteria are met, as follows:</p><br/><p style="margin:0px"><i>Persuasive evidence of an arrangement exists</i> – our customary practice is to obtain written evidence, typically in the form of a contract or purchase order;</p><br/><p style="margin:0px"><i>Delivery </i>– when services are completed in accordance with the underlying contract, or for the sale of goods when custody is transferred to our customers either upon shipment to or receipt at our customers’ locations, with no right of return or further obligations;</p><br/><p style="margin:0px"><i>The price is fixed or determinable</i> – prices are typically fixed and no price protections or variables are offered; and</p><br/><p style="margin:0px"><i>Collectability is reasonably assured </i>– we typically work with businesses with which we have a long standing relationship, as well as continually monitoring and evaluating customers’ ability to pay.</p><br/><p style="margin:0px">Refunds and returns, which are minimal, are recorded as a reduction of revenue.  </p><br/><p style="margin:0px"><font style="text-decoration:underline">Share-based Payments</font></p><br/><p style="margin:0px"><i>Nonemployees</i><b></b>We may enter into agreements with nonemployees to make share-based payments in return for services. These payments may be made in the form of common stock or common stock warrants. We recognize expense for fully-vested warrants at the time they are granted. For awards with service or performance conditions, we generally recognize expense over the service period or when the performance condition is met; however, there may be circumstances in which we determine that the performance condition is probable before the actual performance condition is achieved. In such circumstances, the amount recognized as expense is the pro rata amount, depending on the estimated progress towards completion of the performance condition. Nonemployee share-based payments are measured at fair value, based on either the fair value of the equity instrument issued or on the fair value of the services received. Typically, it is not practical to value the services received, so we determine the fair value of common stock grants based on the price of the common stock on the measurement date (which is the earlier of the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, if there are sufficient disincentives to ensure performance, or the date at which the counterparty’s performance is complete), and the fair value of common stock warrants using Black-Scholes. We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option. For awards that are recognized when a performance condition is probable, the fair value is estimated at each reporting date. The cost ultimately recognized is the fair value of the equity award on the date the performance condition is achieved. Accordingly, the expense recognized may change between interim reporting dates and the date the performance condition is achieved.</p><br/><p style="margin:0px">Awards of common stock with a service or performance condition, where the ultimate number of shares to be issued is uncertain, are classified as liabilities.  All other nonemployee awards are classified as equity.</p><br/><p style="margin:0px"><i>Employees</i> – We issue options to purchase our common stock to our employees, which are measured at fair value using Black-Scholes. We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option.  We recognize expense on a straight-line basis over the service period, net of an estimated forfeiture rate, resulting in a compensation cost for only those shares expected to vest.  Awards to employees are classified as equity.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Shipping and Handling</font></p><br/><p style="margin:0px">Payments by customers to us for shipping and handling costs are included in revenue on the consolidated statements of operations, while our expense is included in cost of goods sold. Shipping and handling for inventory is included as a component of inventory on the consolidated balance sheets, and in cost of goods sold in the consolidated statements of operations when the product is sold.</p><br/><p style="margin:0px; page-break-before:always"><font style="text-decoration:underline">Income Taxes</font></p><br/><p style="margin:0px">We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amount of our assets and liabilities. We monitor our deferred tax assets and evaluate the need for a valuation allowance based on the estimate of the amount of such deferred tax assets that we believe do not meet the more-likely-than-not recognition criteria. We also evaluate whether we have any uncertain tax positions and would record a reserve if we believe it is more-likely-than-not our position would not prevail with the applicable tax authorities. Our assessment of tax positions as of December 31, 2016 and 2015, determined that there were no material uncertain tax positions.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Reportable Segments</font></p><br/><p style="margin:0px">Our reporting segments consist of:  a) Security and Cash Transportation Services; b) Marketing Consulting and Apparel; c) Operations Consulting and Products; and d) Finance and Real Estate.  Our Chief Executive Officer has been identified as the chief decision maker.  Our operations are conducted primarily within the United States of America.  For the years ended December 31, 2016 and 2015, our wholesale supply business, GC Supply, is now included in our Operations Consulting and Products segment; whereas, previously it was included in the Marketing and Products segment.  Prior year amounts have been reclassified to conform to this new presentation.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Related Parties</font></p><br/><p style="margin:0px">Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company.  We disclose related party transactions that are outside of normal compensatory agreements, such as salaries or board of director fees.  We had related party transactions with the following individuals / companies:</p><br/><p style="margin:0px"><i>Michael Feinsod</i> – Chairman of our Board of Directors (“Board”).</p><br/><p style="margin:0px"><i>Infinity Capital West, LLC (“Infinity Capital”)</i> – An investment management company that was founded and is controlled by Michael Feinsod.</p><br/><p style="margin:0px"><i>DB Arizona</i> – A company that has borrowed $825,000 from Infinity Capital.  While we do not possess the ability to influence DB Arizona, and DB Arizona does not possess the ability to influence us, we are including DB Arizona as a related party due to our relationship with Michael Feinsod and Infinity Capital, and their relationship with DB Arizona.</p><br/><p style="margin:0px"><b>Recently Issued Accounting Standards</b></p><br/><p style="margin:0px"><i>Financial Accounting Standards Board, or FASB, Accounting Standards Update, or FASB ASU 2017-04 “Simplifying the Test for Goodwill Impairment (Topic 350)”</i> – In January 2017, the FASB issued 2017-04.  The guidance removes “Step Two” of the goodwill impairment test, which required a hypothetical purchase price allocation.  A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.  The ASU is effective for annual reporting periods beginning after December 15, 2019, and for interim periods within those years, with early adoption permitted.  We do not expect this ASU to have a significant impact on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2017-01 “Clarifying the Definition of a Business (Topic 805)”</i> – In January 2017, the FASB issued 2017-1.  The new guidance that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business.  The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business.  The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606.  The ASU is effective for annual reporting periods beginning after December 15, 2017, and for interim periods within those years.  Adoption of this ASU is not expected to have a significant impact on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-15 “Statement of Cash Flows (Topic 230)” – </i>In August 2016, the FASB issued 2016-15.  Stakeholders indicated that there is a diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice.  This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years.  Early adoption is permitted.  Adoption of this ASU will not have a significant impact on our statement of cash flows.</p><br/><p style="margin:0px"><i>FASB ASU 2016-12 “Revenue from Contracts with Customers (Topic 606)”</i> – In May 2016, the FASB issued 2016-12.  The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  ASU </p><br/><p style="margin:0px; page-break-before:always">2016-12 provides clarification on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications.  This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-11 “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815)”</i> – In May 2016, the FASB issued 2016-11, which clarifies guidance on assessing whether an entity is a principal or an agent in a revenue transaction.  This conclusion impacts whether an entity reports revenue on a gross or net basis.  This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-10 “Revenue from Contracts with Customers (Topic 606)”</i> – In April 2016, the FASB issued ASU 2016-10, clarify identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.  This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-09 “Compensation – Stock Compensation (Topic 718)”</i> – In March 2016, the FASB issued ASU 2016-09, which includes multiple provisions intended to simplify various aspects of accounting for share-based payments.  The new guidance will require entities to recognize all income tax effects of awards in the income statement when the awards vest or are settled.  It also will allow entities to make a policy election to account for forfeitures as they occur.  This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years.  We do not expect this standard will have a significant impact on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2016-02 “Leases (Topic 842)” – </i>In February 2016, the FASB issued ASU 2016-02, which will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability.  For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance.  Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.  Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard.  This ASU is effective for fiscal years beginning after December 18, 2018, including interim periods within those fiscal years.  We are currently evaluating the potential impact this standard will have on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2015-17”Income Taxes (Topic 740)” – </i>In November 2015, the FASB issued ASU 2015-17, which simplifies the presentation of deferred tax assets and liabilities on the balance sheet.  Previous GAAP required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet.  The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet.  This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018.  We are currently evaluating the potential impact this standard will have on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2015-16 “Business Combinations (Topic 805),” or ASU 2015-16</i> - In September 2015, the FASB issued ASU 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This ASU is effective for interim and annual reporting period beginning after December 15, 2016, including interim periods within those fiscal years, with the option to early adopt for financial statements that have not been issued. We will apply this guidance to any business combinations that may occur.</p><br/><p style="margin:0px"><i>FASB ASU 2015-11 “Inventory (Topic 330): Simplifying the Measurement of Inventory,” or ASU 2015-11</i> - In July 2015, the FASB issued ASU 2015-11, which requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments apply to inventory that is measured using first-in, first-out (FIFO) or average cost. This ASU is effective for interim and annual reporting periods beginning after December 15, 2016, with the option to early adopt as of the beginning of an annual or interim period. We do not expect the adoption of this ASU to have a significant impact on our financial position, results of operations and cash flows.</p><br/></div>
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<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>Nature of Operations</b></p><br/><p style="margin:0px">General Cannabis Corp, a Colorado Corporation (the “Company,” “we,” “us,” “our,” or “GCC”) (formerly, Advanced Cannabis Solutions, Inc.), was incorporated on June 3, 2013, and provides services and products to the regulated cannabis industry.  On April 28, 2015, our common stock was uplisted and on May 6, 2015, resumed quotation on the OTC Market’s OTCQB.  Our operations are segregated into the following four segments:</p><br/><p style="margin:0px"><font style="text-decoration:underline">Security and Cash Transportation Services (“Security Segment”)</font></p><br/><p style="margin:0px">In March 2015, we acquired substantially all of the assets of Iron Protection Group, LLC, a Colorado limited liability company, and will continue to do business as “Iron Protection Group.” Iron Protection Group, or IPG, provides advanced security, including on-site professionals, video surveillance and cash transport, to licensed cannabis cultivators and retail shops.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Marketing Consulting and Apparel (“Marketing Segment”)</font></p><br/><p style="margin:0px">Chiefton Design provides design, branding and marketing strategy consulting services to the cannabis industry.  We assist clients in developing a comprehensive marketing strategy, as well as designing and sourcing client-specific apparel and products.</p><br/><p style="margin:0px">Chiefton’s apparel business, Chiefton Supply, strives to create innovative, unique cannabis-inspired t-shirts, hats, hoodies and accessories.  Our apparel is sold through our on-line shop, cannabis retailers, and specialty t-shirt and gift shops.  The apparel sold by Chiefton is purchased and screen printed by third parties, for which there are numerous suppliers. </p><br/><p style="margin:0px"><font style="text-decoration:underline">Operations Consulting and Products (“Operations Segment”)</font></p><br/><p style="margin:0px">Through Next Big Crop (“NBC”), we deliver comprehensive consulting services to the cannabis industry that include obtaining licenses, compliance, cultivation, retail operations, logistical support, facility design and construction, and expansion of existing operations. Our business plan for NBC is based on the future growth of the regulated cannabis market in the United States.</p><br/><p style="margin:0px">NBC oversees our wholesale equipment and supply business, operated under the name “GC Supply,” which provides turnkey sourcing and stocking services to cultivation, retail and infused products manufacturing facilities. Our products include infrastructure, equipment, consumables, and compliance packaging.  GC Supply operates out of a leased, 1,800 square foot warehouse located in Colorado Springs, Colorado.</p><br/><p style="margin:0px"><font style="text-decoration:underline">Finance and Real Estate (“Finance Segment”)</font></p><br/><p style="margin:0px"><i>Real Estate Leasing</i></p><br/><p style="margin:0px">We own a cultivation property in a suburb of Pueblo, Colorado, consisting of approximately three acres of land, which currently includes a 5,000 square foot steel building and a parking lot. The property is zoned for cultivating cannabis and is leased to a medical cannabis grower until December 31, 2022.</p><br/><p style="margin:0px">Our real estate leasing business plan includes the potential future acquisition and leasing of cultivation space and related facilities to licensed marijuana growers and dispensary owners for their operations. Management anticipates that these facilities would range in size from 5,000 to 50,000 square feet. These facilities would only be leased to tenants that possess the requisite state licenses to operate cultivation facilities. The leases with the tenants would include certain requirements that permit us to continually evaluate our tenants’ compliance with applicable laws and regulations.</p><br/><p style="margin:0px"><i>Shared Office Space, Networking and Event Services</i></p><br/><p style="margin:0px">In October 2014, we purchased a former retail bank located at 6565 East Evans Avenue, Denver, Colorado 80224, which has been branded as “The Greenhouse”. The building is a 16,056 square foot facility, which we use as our corporate headquarters.</p><br/><p style="margin:0px">The Greenhouse has approximately 10,000 square feet of existing office space and 5,000 square feet on its ground floor that is dedicated to a consumer banking design. We continue to assess the opportunity to lease shared workspace for entrepreneurs, professionals and others serving the cannabis industry. Clients would be able to lease space to use as offices, meeting rooms, lecture, educational and networking facilities, and individual workstations.  We expect to continue the renovation of The Greenhouse in 2017.</p><br/><p style="margin:0px; page-break-before:always">We plan to continue to acquire commercial real estate and lease office space to participants in the cannabis industry. These participants may include media, internet, packaging, lighting, cultivation supplies and financial services-related companies. In exchange for certain services that may be provided to these tenants, we expect to receive rental income in the form of cash. In certain cases, we may acquire equity interests or provide debt capital to these businesses.</p><br/><p style="margin:0px"><i>Industry Finance</i></p><br/><p style="margin:0px">Our industry finance strategy includes evaluating opportunities to make direct term loans or to provide revolving lines of credit to businesses involved in the cultivation and sale of cannabis and related products.  These loans would generally be secured to the maximum extent permitted by law.  We believe there is a significant demand for this type of financing.  We are assessing other finance services including customized finance, capital formation and banking, for participants in the cannabis industry.</p></div>
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<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>Basis of Presentation</b></p><br/><p style="margin:0px">The accompanying consolidated financial statements include the results of GCC, and its five wholly-owned subsidiary companies: (a) ACS Colorado Corp., a Colorado corporation formed in 2013; (b) Advanced Cannabis Solutions Corporation, a Colorado corporation formed in 2013; (c) 6565 E. Evans Avenue LLC, a Colorado limited liability company formed in 2014; (d)  General Cannabis Capital Corporation, a Colorado corporation formed in 2015; and (e) GC Security LLC, a Colorado limited liability company formed in 2015.  Advanced Cannabis Solutions Corporation has one wholly-owned subsidiary company, ACS Corp., which was formed in Colorado on June 6, 2013.  Intercompany accounts and transactions have been eliminated.</p><br/><p style="margin:0px">The preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Although these estimates are based on our knowledge of current events and actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. Furthermore, when testing assets for impairment in future periods, if management uses different assumptions or if different conditions occur, impairment charges may result.</p><br/><p style="margin:0px">Certain reclassifications have been made to the prior period segment reporting to conform to the current period presentation related to now including GC Supply in our Operations Segment. The reclassifications had no effect on net loss, total assets, or total stockholders’ equity (deficit).</p></div>
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<cann:NumberOfWhollyOwnedSubsidiary unitRef="pure" contextRef="c65_From1Jan2016To31Dec2016_ACSCorpMember" decimals="0"> 1 </cann:NumberOfWhollyOwnedSubsidiary>
<cann:GoingConcernPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>Going Concern</b></p><br/><p style="margin:0px">The consolidated financial statements have been prepared on a going concern basis, which assumes we will be able to realize our assets and discharge our liabilities in the normal course of business for the foreseeable future.  The ability to continue as a going concern is dependent upon our generating profitable operations in the future and / or obtaining the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. Management believes that actions presently being taken to further implement its business plan and generate additional revenues provide opportunity for us to continue as a going concern.  While we believe in the viability of our strategy to generate additional revenues and our ability to raise additional funds, there can be no assurances to that effect.</p><br/><p style="margin:0px">We had an accumulated deficit of $49,227,055 at December 31, 2016, and further losses are anticipated in the development of our business. Accordingly, there is substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.</p></div>
</cann:GoingConcernPolicyTextBlock>
<us-gaap:CashAndCashEquivalentsPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Cash and Cash Equivalents</font></p><br/><p style="margin:0px">Cash and cash equivalents include cash on hand, deposits with banks, and investments that are highly liquid and have maturities of three months or less at the date of purchase.  We maintain our cash balances in financial institutions that, from time to time, may exceed amounts insured by the Federal Deposit Insurance Corporation (up to $250,000 as of December 31, 2016).</p></div>
</us-gaap:CashAndCashEquivalentsPolicyTextBlock>
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<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Inventory</font></p><br/><p style="margin:0px">Our inventory consists of finished goods, including apparel and supplies for the cannabis market.  Inventory is stated at the lower of cost or market, using the first-in, first-out method (“FIFO”) to determine cost. We monitor inventory cost compared to selling price in order to determine if a lower of cost or market reserve is necessary.  For the years ended December 31, 2016 and 2015, cost of goods sold included $0 and $75,048, respectively, of expense for inventory adjusted down to market value.</p></div>
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<us-gaap:InventoryAdjustments unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 0 </us-gaap:InventoryAdjustments>
<us-gaap:InventoryAdjustments unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 75048 </us-gaap:InventoryAdjustments>
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<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px; page-break-before:always"><font style="text-decoration:underline">Property and Equipment</font></p><br/><p style="margin:0px">Property and equipment are recorded at historical cost.  The cost of maintenance and repairs, which are not significant improvements, are expensed when incurred.  Depreciation is computed using the straight-line method over the estimated useful lives of the assets:  thirty years for buildings, the lesser of five years or the life of the lease for leasehold improvements, and three to five years for furniture, fixtures and equipment.  Land is not depreciated.</p></div>
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<us-gaap:BusinessCombinationsPolicy contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Business Combinations</font></p><br/><p style="margin:0px">Amounts paid for acquisitions are allocated to the assets acquired and liabilities assumed based on their estimated fair value at the date of acquisition.  The fair value of identifiable intangible assets is based on detailed valuations that use information and assumptions provided by management, including expected future cash flows. We allocate any excess purchase price over the fair value of the net assets and liabilities acquired to goodwill.  Identifiable intangible assets with finite lives are amortized over their useful lives. Acquisition-related costs, including advisory, legal, accounting, valuation and other costs, are expensed in the periods in which the costs are incurred. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.</p></div>
</us-gaap:BusinessCombinationsPolicy>
<us-gaap:GoodwillAndIntangibleAssetsGoodwillPolicy contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Intangible Assets and Goodwill</font></p><br/><p style="margin:0px">Goodwill is the cost of an acquisition less the fair value of the net assets of the acquired business.</p><br/><p style="margin:0px">Intangible assets consist primarily of customer relationships, non-compete agreements with key employees, and marketing-related intangibles. Our intangible assets are being amortized on a straight-line basis over a period of two to ten years.</p></div>
</us-gaap:GoodwillAndIntangibleAssetsGoodwillPolicy>
<us-gaap:FiniteLivedIntangibleAssetUsefulLife contextRef="c70_From1Jan2016To31Dec2016_MinimumMember"> P2Y </us-gaap:FiniteLivedIntangibleAssetUsefulLife>
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<us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Impairment of Long-lived Assets and Goodwill</font></p><br/><p style="margin:0px">We evaluate goodwill for impairment annually in the fourth quarter, and whenever events or changes in circumstances indicate it is more likely than not that the fair value of a reporting unit containing goodwill is less than its carrying amount.  The goodwill impairment test consists of a two-step process, if necessary. The first step is to compare the fair value of a reporting unit to its carrying value, including goodwill. We typically use discounted cash flow models to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe hypothetical marketplace participants would use. If the fair value of the reporting unit is less than its carrying value, the second step of the impairment test must be performed in order to determine the amount of impairment loss, if any. The second step compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds its implied fair value, an impairment charge is recognized in an amount equal to that excess. The loss recognized cannot exceed the carrying amount of goodwill.</p><br/><p style="margin:0px">We periodically evaluate whether the carrying value of property, equipment and intangible assets has been impaired when circumstances indicate the carrying value of those assets may not be recoverable.  The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  If the carrying value is not recoverable, the impairment loss is measured as the excess of the asset’s carrying value over its fair value.</p><br/><p style="margin:0px">Our impairment analyses require management to apply judgment in estimating future cash flows as well as asset fair values, including forecasting useful lives of the assets, assessing the probability of different outcomes, and selecting the discount rate that reflects the risk inherent in future cash flows. If the carrying value is not recoverable, we assess the fair value of long-lived assets using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third party comparable sales and discounted cash flow models.  If actual results are not consistent with our assumptions and estimates, or our assumptions and estimates change due to new information, we may be exposed to an impairment charge in the future.</p></div>
</us-gaap:ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock>
<us-gaap:DebtPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Debt</font></p><br/><p style="margin:0px">We issue debt that may have separate warrants, conversion features, or no equity-linked attributes.</p><br/><p style="margin:0px"><i>Debt with warrants</i> – When we issue debt with warrants, we treat the warrants as a debt discount, record as a contra-liability against the debt, and amortize the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statements of operations.  When the warrants do not have complex terms, the offset to the contra-liability is recorded as additional paid in capital in our consolidated balance sheet.  When we issue debt with warrants that have complex terms, such as a clause requiring repricing, the warrants are considered to be a derivative that is recorded as a liability at fair value.  If the initial value of the warrant derivative liability is higher than the fair value of the associated debt, the excess is recognized immediately as interest expense.  The warrant derivative liability is adjusted to its fair value at the end of each reporting period, with the change being recorded as expense or gain.  If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statement of operations.  The debt is treated as conventional debt.</p><br/><p style="margin:0px; page-break-before:always">We determine the value of the non-complex warrants using the Black-Scholes Option Pricing Model (“Black-Scholes”) using the stock price on the date of issuance, the risk free interest rate associated with the life of the debt, and the volatility of our stock.  For warrants that result in recording derivatives, we use the binomial model to estimate their fair value.  The derivative warrant liability is a level three fair value measurement.</p><br/><p style="margin:0px"><i>Convertible debt</i><i>derivative treatment </i>– When we issue debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows:  a) one or more underlyings, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer’s own equity.  The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in stockholders’ equity in its statement of financial position.</p><br/><p style="margin:0px">If the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the convertible debt derivative using Black-Scholes upon the date of issuance.  If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense.  Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt.  The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the consolidated statement of operations.  The debt discount is amortized over the life of the debt.</p><br/><p style="margin:0px"><i>Convertible debt – beneficial conversion feature</i> – If the conversion feature is not treated as a derivative, we assess whether it is a beneficial conversion feature (“BCF”).  A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date.  This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued.  The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible, and is recorded as additional paid in capital and as a debt discount in the consolidated balance sheet.  We amortize the balance over the life of the underlying debt as amortization of debt discount expense in the consolidated statement of operations.  If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the consolidated statement of operations.</p><br/><p style="margin:0px">If the conversion feature does not qualify for either derivative treatment or as a BCF, the convertible debt is treated as traditional debt.</p><br/><p style="margin:0px"><i>Modification of debt instruments –</i>  Modifications or exchanges of debt that are not considered to be a troubled debt restructuring, are considered extinguishments if the terms of the new debt and the original instrument are substantially different.  The instruments are considered substantially different when the present value of the cash flows under the terms of the new debt instrument are at least 10% different from the present value of the remaining cash flows under the terms of the original instrument.  The fair value of non-cash consideration associated with the new debt instrument, such as warrants, are included as a day one cash flow in the 10% cash flow test.  If the original and new debt instruments are substantially different, the original debt is derecognized and the new debt is initially recorded at fair value, with the difference recognized as an extinguishment gain or loss.  If the original and new debt instruments are not substantially different, the new effective interest rate is applied to the modified agreement based on the original terms and the increase, if any, in fair value under the modified agreement.</p></div>
</us-gaap:DebtPolicyTextBlock>
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<us-gaap:FairValueOfFinancialInstrumentsPolicy contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Fair Value Measurements</font></p><br/><p style="margin:0px">Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:</p><br/><p style="margin:0px">Level 1 – Quoted prices in active markets for identical assets or liabilities.</p><br/><p style="margin:0px">Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.</p><br/><p style="margin:0px">Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.</p><br/><p style="margin:0px; page-break-before:always">Our financial instruments include cash, accounts receivable, note receivable, accounts payables and tenant deposits. The carrying values of these financial instruments approximate their fair value due to their short maturities.  The carrying amount of our debt approximates fair value because the interest rates on these instruments approximate the interest rate on debt with similar terms available to us.  Our derivative liability was adjusted to fair market value at the end of each reporting period, using Level 3 inputs.</p></div>
</us-gaap:FairValueOfFinancialInstrumentsPolicy>
<us-gaap:RevenueRecognitionPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Revenue Recognition</font></p><br/><p style="margin:0px">We recognize revenue when the four revenue recognition criteria are met, as follows:</p><br/><p style="margin:0px"><i>Persuasive evidence of an arrangement exists</i> – our customary practice is to obtain written evidence, typically in the form of a contract or purchase order;</p><br/><p style="margin:0px"><i>Delivery </i>– when services are completed in accordance with the underlying contract, or for the sale of goods when custody is transferred to our customers either upon shipment to or receipt at our customers’ locations, with no right of return or further obligations;</p><br/><p style="margin:0px"><i>The price is fixed or determinable</i> – prices are typically fixed and no price protections or variables are offered; and</p><br/><p style="margin:0px"><i>Collectability is reasonably assured </i>– we typically work with businesses with which we have a long standing relationship, as well as continually monitoring and evaluating customers’ ability to pay.</p><br/><p style="margin:0px">Refunds and returns, which are minimal, are recorded as a reduction of revenue.</p></div>
</us-gaap:RevenueRecognitionPolicyTextBlock>
<us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Share-based Payments</font></p><br/><p style="margin:0px"><i>Nonemployees</i><b></b>We may enter into agreements with nonemployees to make share-based payments in return for services. These payments may be made in the form of common stock or common stock warrants. We recognize expense for fully-vested warrants at the time they are granted. For awards with service or performance conditions, we generally recognize expense over the service period or when the performance condition is met; however, there may be circumstances in which we determine that the performance condition is probable before the actual performance condition is achieved. In such circumstances, the amount recognized as expense is the pro rata amount, depending on the estimated progress towards completion of the performance condition. Nonemployee share-based payments are measured at fair value, based on either the fair value of the equity instrument issued or on the fair value of the services received. Typically, it is not practical to value the services received, so we determine the fair value of common stock grants based on the price of the common stock on the measurement date (which is the earlier of the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, if there are sufficient disincentives to ensure performance, or the date at which the counterparty’s performance is complete), and the fair value of common stock warrants using Black-Scholes. We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option. For awards that are recognized when a performance condition is probable, the fair value is estimated at each reporting date. The cost ultimately recognized is the fair value of the equity award on the date the performance condition is achieved. Accordingly, the expense recognized may change between interim reporting dates and the date the performance condition is achieved.</p><br/><p style="margin:0px">Awards of common stock with a service or performance condition, where the ultimate number of shares to be issued is uncertain, are classified as liabilities.  All other nonemployee awards are classified as equity.</p><br/><p style="margin:0px"><i>Employees</i> – We issue options to purchase our common stock to our employees, which are measured at fair value using Black-Scholes. We use historical data to estimate the expected price volatility, the expected stock option life and expected forfeiture rate. The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the stock option.  We recognize expense on a straight-line basis over the service period, net of an estimated forfeiture rate, resulting in a compensation cost for only those shares expected to vest.  Awards to employees are classified as equity.</p></div>
</us-gaap:ShareBasedCompensationOptionAndIncentivePlansPolicy>
<us-gaap:ShippingAndHandlingCostPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Shipping and Handling</font></p><br/><p style="margin:0px">Payments by customers to us for shipping and handling costs are included in revenue on the consolidated statements of operations, while our expense is included in cost of goods sold. Shipping and handling for inventory is included as a component of inventory on the consolidated balance sheets, and in cost of goods sold in the consolidated statements of operations when the product is sold.</p></div>
</us-gaap:ShippingAndHandlingCostPolicyTextBlock>
<us-gaap:IncomeTaxPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px; page-break-before:always"><font style="text-decoration:underline">Income Taxes</font></p><br/><p style="margin:0px">We recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the income tax and financial reporting carrying amount of our assets and liabilities. We monitor our deferred tax assets and evaluate the need for a valuation allowance based on the estimate of the amount of such deferred tax assets that we believe do not meet the more-likely-than-not recognition criteria. We also evaluate whether we have any uncertain tax positions and would record a reserve if we believe it is more-likely-than-not our position would not prevail with the applicable tax authorities. Our assessment of tax positions as of December 31, 2016 and 2015, determined that there were no material uncertain tax positions.</p></div>
</us-gaap:IncomeTaxPolicyTextBlock>
<us-gaap:SegmentReportingPolicyPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Reportable Segments</font></p><br/><p style="margin:0px">Our reporting segments consist of:  a) Security and Cash Transportation Services; b) Marketing Consulting and Apparel; c) Operations Consulting and Products; and d) Finance and Real Estate.  Our Chief Executive Officer has been identified as the chief decision maker.  Our operations are conducted primarily within the United States of America.  For the years ended December 31, 2016 and 2015, our wholesale supply business, GC Supply, is now included in our Operations Consulting and Products segment; whereas, previously it was included in the Marketing and Products segment.  Prior year amounts have been reclassified to conform to this new presentation.</p></div>
</us-gaap:SegmentReportingPolicyPolicyTextBlock>
<cann:RelatedPartiesPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><font style="text-decoration:underline">Related Parties</font></p><br/><p style="margin:0px">Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company.  We disclose related party transactions that are outside of normal compensatory agreements, such as salaries or board of director fees.  We had related party transactions with the following individuals / companies:</p><br/><p style="margin:0px"><i>Michael Feinsod</i> – Chairman of our Board of Directors (“Board”).</p><br/><p style="margin:0px"><i>Infinity Capital West, LLC (“Infinity Capital”)</i> – An investment management company that was founded and is controlled by Michael Feinsod.</p><br/><p style="margin:0px"><i>DB Arizona</i> – A company that has borrowed $825,000 from Infinity Capital.  While we do not possess the ability to influence DB Arizona, and DB Arizona does not possess the ability to influence us, we are including DB Arizona as a related party due to our relationship with Michael Feinsod and Infinity Capital, and their relationship with DB Arizona.</p></div>
</cann:RelatedPartiesPolicyTextBlock>
<cann:DebtOwedByNonRelatedPartyToRelatedParty unitRef="usd" contextRef="c72_From1Jan2016To31Dec2016_DBArizonaMember_FeinsodAgreementMember" decimals="0"> 825000 </cann:DebtOwedByNonRelatedPartyToRelatedParty>
<us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>Recently Issued Accounting Standards</b></p><br/><p style="margin:0px"><i>Financial Accounting Standards Board, or FASB, Accounting Standards Update, or FASB ASU 2017-04 “Simplifying the Test for Goodwill Impairment (Topic 350)”</i> – In January 2017, the FASB issued 2017-04.  The guidance removes “Step Two” of the goodwill impairment test, which required a hypothetical purchase price allocation.  A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.  The ASU is effective for annual reporting periods beginning after December 15, 2019, and for interim periods within those years, with early adoption permitted.  We do not expect this ASU to have a significant impact on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2017-01 “Clarifying the Definition of a Business (Topic 805)”</i> – In January 2017, the FASB issued 2017-1.  The new guidance that changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business.  The guidance requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business.  The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606.  The ASU is effective for annual reporting periods beginning after December 15, 2017, and for interim periods within those years.  Adoption of this ASU is not expected to have a significant impact on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-15 “Statement of Cash Flows (Topic 230)” – </i>In August 2016, the FASB issued 2016-15.  Stakeholders indicated that there is a diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice.  This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years.  Early adoption is permitted.  Adoption of this ASU will not have a significant impact on our statement of cash flows.</p><br/><p style="margin:0px"><i>FASB ASU 2016-12 “Revenue from Contracts with Customers (Topic 606)”</i> – In May 2016, the FASB issued 2016-12.  The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  ASU </p><br/><p style="margin:0px; page-break-before:always">2016-12 provides clarification on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications.  This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-11 “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815)”</i> – In May 2016, the FASB issued 2016-11, which clarifies guidance on assessing whether an entity is a principal or an agent in a revenue transaction.  This conclusion impacts whether an entity reports revenue on a gross or net basis.  This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-10 “Revenue from Contracts with Customers (Topic 606)”</i> – In April 2016, the FASB issued ASU 2016-10, clarify identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.  This ASU is effective for annual reporting periods beginning after December 15, 2017, with the option to adopt as early as December 15, 2016. We are currently assessing the impact of adoption of this ASU on our consolidated results of operations, cash flows and financial position.</p><br/><p style="margin:0px"><i>FASB ASU 2016-09 “Compensation – Stock Compensation (Topic 718)”</i> – In March 2016, the FASB issued ASU 2016-09, which includes multiple provisions intended to simplify various aspects of accounting for share-based payments.  The new guidance will require entities to recognize all income tax effects of awards in the income statement when the awards vest or are settled.  It also will allow entities to make a policy election to account for forfeitures as they occur.  This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years.  We do not expect this standard will have a significant impact on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2016-02 “Leases (Topic 842)” – </i>In February 2016, the FASB issued ASU 2016-02, which will require lessees to recognize almost all leases on their balance sheet as a right-of-use asset and a lease liability.  For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance.  Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines.  Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model and the new revenue recognition standard.  This ASU is effective for fiscal years beginning after December 18, 2018, including interim periods within those fiscal years.  We are currently evaluating the potential impact this standard will have on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2015-17”Income Taxes (Topic 740)” – </i>In November 2015, the FASB issued ASU 2015-17, which simplifies the presentation of deferred tax assets and liabilities on the balance sheet.  Previous GAAP required an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts on the balance sheet.  The amendment requires that deferred tax liabilities and assets be classified as noncurrent in a classified balance sheet.  This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within annual periods beginning after December 15, 2018.  We are currently evaluating the potential impact this standard will have on our consolidated financial statements and related disclosures.</p><br/><p style="margin:0px"><i>FASB ASU 2015-16 “Business Combinations (Topic 805),” or ASU 2015-16</i> - In September 2015, the FASB issued ASU 2015-16, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This ASU is effective for interim and annual reporting period beginning after December 15, 2016, including interim periods within those fiscal years, with the option to early adopt for financial statements that have not been issued. We will apply this guidance to any business combinations that may occur.</p><br/><p style="margin:0px"><i>FASB ASU 2015-11 “Inventory (Topic 330): Simplifying the Measurement of Inventory,” or ASU 2015-11</i> - In July 2015, the FASB issued ASU 2015-11, which requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments apply to inventory that is measured using first-in, first-out (FIFO) or average cost. This ASU is effective for interim and annual reporting periods beginning after December 15, 2016, with the option to early adopt as of the beginning of an annual or interim period. We do not expect the adoption of this ASU to have a significant impact on our financial position, results of operations and cash flows.</p></div>
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<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 2.</b>   <b>BUSINESS ACQUISITIONS</b></p><br/><p style="margin:0px"><b>IPG Acquisition</b></p><br/><p style="margin:0px">On March 26, 2015, we entered into an Asset Purchase Agreement (the “IPG APA”) by and among us and Iron Protection Group, LLC, a Colorado limited liability company (“Seller”), whereby we agreed to acquire substantially all of the assets of Seller (the “IPG Acquisition”).  This acquisition expanded our service offerings in the cannabis industry and provided a new revenue stream.</p><br/><p style="margin:0px; page-break-before:always">Pursuant to the terms of the IPG APA, we delivered to Seller 500,000 restricted shares of our common stock, which vested over a one-year period (100,000 shares on October 1, 2015; 200,000 shares on January 1, 2016; and 200,000 shares on April 1, 2016).</p><br/><p style="margin:0px">In addition, we delivered to Seller three-year warrants (the “IPG Warrants”) to purchase an aggregate of 500,000 shares of our common stock at an exercise price of: (i) $4.50 for warrants to purchase 250,000 shares, and (ii) $5.00 for warrants to purchase another 250,000 shares.  The IPG APA contains certain provisions that require Seller to forfeit a portion of the stock consideration in the event that Seller violates its obligations under the IPG APA relating to non-competition and non-disclosure. The closing date of the IPG Acquisition was March 26, 2015, and we calculated the purchase price of the IPG Acquisition to be approximately $1,887,000. At the acquisition date and pursuant to the IPG APA, we did not assume any of the Seller’s liabilities and there were no tangible assets of significance.</p><br/><p style="margin:0px">The aggregate consideration was as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">Common stock payable</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,054,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px">Warrants issued with $4.50 exercise price</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">421,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">Warrants issued with $5.00 exercise price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">412,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,887,000</p> </td></tr> </table><br/><p style="margin:0px">The 500,000 shares of common stock were valued based on the closing price per share on March 26, 2015, or $2.48, reduced by a discount of 15% due to restrictions in the ability to trade our common stock.  The $1,054,000 value of stock consideration was recorded as accrued stock payable on the consolidated balance sheet, which was reduced as we issued common stock according to the vesting schedule.</p><br/><p style="margin:0px">The purchase price allocation was as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px">Intangible assets:</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Customer relationship intangible</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,000,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Marketing-related intangibles</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">200,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Non-compete agreements</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">500,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Goodwill</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">187,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,887,000</p> </td></tr> </table><br/><p style="margin:0px">We finalized the purchase price allocation in the fourth quarter of the year ended December 31, 2015. </p><br/><p style="margin:0px">In connection with our acquisition of IPG, we agreed to issue to the sole shareholder of the Seller 100,000 fully vested warrants to purchase shares of our common stock if revenues of the Security segment exceeded $3,000,000 for the year ended December 31, 2015, with an exercise price of $2.48.  This condition was not met during the year ended December 31, 2015, so no value was recorded for these warrants.</p><br/><p style="margin:0px">The accompanying consolidated financial statements include the results of IPG from the date of acquisition, March 26, 2015.  The pro forma effects of the acquisition on the results of operations as if the transaction had been completed on January 1, 2015, are as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 334.667;"></td><td style="width: 97.8;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> <p style="margin:0px; text-align: center;">(Unaudited)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">Total net revenues</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">2,132,724</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">Net loss</p> </td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(8,733,016)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">Net loss per common share:</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">  Basic and diluted</p> </td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(0.60)</p> </td></tr> </table><br/><p style="margin:0px"><b>Chiefton Acquisition</b></p><br/><p style="margin:0px">On September 25, 2015, we closed an asset purchase agreement for the purchase of substantially all the assets of Chiefton Supply Co., a Colorado corporation, and established a dba within GCC of Chiefton.  This acquisition expanded our service offerings in the cannabis industry and provided a new revenue stream.</p><br/><p style="margin:0px">We acquired the Chiefton assets for consideration of 80,000 restricted shares of our common stock. The shares remained in escrow for six months for the exclusive purpose of being available to indemnify us for any claims that may be made by any person or governmental entity related to or arising from Chiefton’s intellectual property during the six month period after closing. After such period, the shares were released since no claims were made.</p><br/><p style="margin:0px; page-break-before:always">The aggregate consideration was as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">Cash</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">12,249</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px">Common stock</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">69,400</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">  Aggregate consideration</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">81,649</p> </td></tr> </table><br/><p style="margin:0px">The value of the common stock consideration was estimated based on our closing common stock price on September 25, 2015, or $1.02 per share, reduced by a discount of 15% due to restrictions in the ability to trade our shares.  The $69,400 value of stock consideration was included in accrued stock payable on the consolidated balance sheet as of December 31, 2015.</p><br/><p style="margin:0px">The purchase price allocation was as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Inventory</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">12,249</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Intangible assets – Chiefton brand and graphic designs</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">69,400</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">81,649</p> </td></tr> </table><br/><p style="margin:0px">We finalized the purchase price allocation in the fourth quarter of the year ended December 31, 2015. </p><br/></div>
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<us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures unitRef="shares" contextRef="c75_From1Jan2016To1Jan2016_IronProtectionGroupMember" decimals="INF"> 200000 </us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures>
<us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures unitRef="shares" contextRef="c76_From1Apr2016To1Apr2016_IronProtectionGroupMember" decimals="INF"> 200000 </us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures>
<us-gaap:ClassOfWarrantOrRightOutstanding unitRef="shares" contextRef="c77_AsOf31Dec2016_IronProtectionGroupMember" decimals="INF"> 500000 </us-gaap:ClassOfWarrantOrRightOutstanding>
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<us-gaap:ClassOfWarrantOrRightOutstanding unitRef="shares" contextRef="c78_AsOf31Dec2016_IronProtectionGroupMember_IPG4.50WarrantsMember" decimals="INF"> 250000 </us-gaap:ClassOfWarrantOrRightOutstanding>
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<us-gaap:ClassOfWarrantOrRightOutstanding unitRef="shares" contextRef="c79_AsOf31Dec2016_IronProtectionGroupMember_IPG5.00WarrantsMember" decimals="INF"> 250000 </us-gaap:ClassOfWarrantOrRightOutstanding>
<cann:AcquisitionOfIpgWithCommonStockPayableNetOfCashReceived unitRef="usd" contextRef="c80_From26Mar2015To26Mar2015_IronProtectionGroupMember" decimals="0"> 1887000 </cann:AcquisitionOfIpgWithCommonStockPayableNetOfCashReceived>
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<cann:ClassOfWarrantOrRightIssuanceThresholdRevenue unitRef="usd" contextRef="c82_From1Jan2015To31Dec2015_IronProtectionGroupMember_ConditionalIssuanceMember" decimals="0"> 3000000 </cann:ClassOfWarrantOrRightIssuanceThresholdRevenue>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 unitRef="usdPershares" contextRef="c83_AsOf31Dec2015_IronProtectionGroupMember_ConditionalIssuanceMember" decimals="2"> 2.48 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:CommonStockCapitalSharesReservedForFutureIssuance unitRef="shares" contextRef="c84_AsOf31Dec2016_ChieftonAcquisitionMember" decimals="INF"> 80000 </us-gaap:CommonStockCapitalSharesReservedForFutureIssuance>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c84_AsOf31Dec2016_ChieftonAcquisitionMember" decimals="2"> 1.02 </us-gaap:SharePrice>
<cann:SharePriceDiscount unitRef="pure" contextRef="c84_AsOf31Dec2016_ChieftonAcquisitionMember" decimals="2"> 0.15 </cann:SharePriceDiscount>
<cann:AccruedStockPayableCurrentPortion unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 69400 </cann:AccruedStockPayableCurrentPortion>
<cann:AgregateConsiderationTableTextBlock contextRef="c86_From1Jan2016To31Dec2016_IPGAcquisitionMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> The aggregate consideration was as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">Common stock payable</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,054,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px">Warrants issued with $4.50 exercise price</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">421,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">Warrants issued with $5.00 exercise price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">412,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,887,000</p> </td></tr> </table></div>
</cann:AgregateConsiderationTableTextBlock>
<us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable unitRef="usd" contextRef="c87_From1Jan2015To31Dec2015_IronProtectionGroupMember_CommonStockMember" decimals="0"> 1054000 </us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable>
<us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable unitRef="usd" contextRef="c88_From1Jan2015To31Dec2015_IronProtectionGroupMember_IPG4.50WarrantsMember" decimals="0"> 421000 </us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable>
<us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable unitRef="usd" contextRef="c89_From1Jan2015To31Dec2015_IronProtectionGroupMember_IPG5.00WarrantsMember" decimals="0"> 412000 </us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable>
<us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable unitRef="usd" contextRef="c90_From1Jan2015To31Dec2015_IronProtectionGroupMember" decimals="0"> 1887000 </us-gaap:BusinessCombinationConsiderationTransferredEquityInterestsIssuedAndIssuable>
<us-gaap:BusinessCombinationSegmentAllocationTableTextBlock contextRef="c86_From1Jan2016To31Dec2016_IPGAcquisitionMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> The purchase price allocation was as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px">Intangible assets:</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Customer relationship intangible</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,000,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Marketing-related intangibles</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">200,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Non-compete agreements</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">500,000</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Goodwill</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">187,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">1,887,000</p> </td></tr> </table></div>
</us-gaap:BusinessCombinationSegmentAllocationTableTextBlock>
<us-gaap:IndefinitelivedIntangibleAssetsAcquired unitRef="usd" contextRef="c91_From1Jan2015To31Dec2015_IronProtectionGroupMember_CustomerRelationshipsMember" decimals="0"> 1000000 </us-gaap:IndefinitelivedIntangibleAssetsAcquired>
<us-gaap:IndefinitelivedIntangibleAssetsAcquired unitRef="usd" contextRef="c92_From1Jan2015To31Dec2015_IronProtectionGroupMember_MarketingRelatedIntangibleAssetsMember" decimals="0"> 200000 </us-gaap:IndefinitelivedIntangibleAssetsAcquired>
<us-gaap:IndefinitelivedIntangibleAssetsAcquired unitRef="usd" contextRef="c93_From1Jan2015To31Dec2015_IronProtectionGroupMember_NoncompeteAgreementsMember" decimals="0"> 500000 </us-gaap:IndefinitelivedIntangibleAssetsAcquired>
<us-gaap:GoodwillAcquiredDuringPeriod unitRef="usd" contextRef="c90_From1Jan2015To31Dec2015_IronProtectionGroupMember" decimals="0"> 187000 </us-gaap:GoodwillAcquiredDuringPeriod>
<us-gaap:IndefinitelivedIntangibleAssetsAcquired unitRef="usd" contextRef="c90_From1Jan2015To31Dec2015_IronProtectionGroupMember" decimals="0"> 1887000 </us-gaap:IndefinitelivedIntangibleAssetsAcquired>
<us-gaap:BusinessAcquisitionProFormaInformationNonrecurringAdjustmentsTableTextBlock contextRef="c86_From1Jan2016To31Dec2016_IPGAcquisitionMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> The accompanying consolidated financial statements include the results of IPG from the date of acquisition, March 26, 2015. The pro forma effects of the acquisition on the results of operations as if the transaction had been completed on January 1, 2015, are as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 334.667;"></td><td style="width: 97.8;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> <p style="margin:0px; text-align: center;">(Unaudited)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">Total net revenues</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">2,132,724</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">Net loss</p> </td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(8,733,016)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">Net loss per common share:</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">  Basic and diluted</p> </td><td style="margin-top:0px; width: 97.8;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(0.60)</p> </td></tr> </table></div>
</us-gaap:BusinessAcquisitionProFormaInformationNonrecurringAdjustmentsTableTextBlock>
<us-gaap:BusinessAcquisitionsProFormaRevenue unitRef="usd" contextRef="c90_From1Jan2015To31Dec2015_IronProtectionGroupMember" decimals="0"> 2132724 </us-gaap:BusinessAcquisitionsProFormaRevenue>
<us-gaap:BusinessAcquisitionsProFormaNetIncomeLoss unitRef="usd" contextRef="c90_From1Jan2015To31Dec2015_IronProtectionGroupMember" decimals="0"> -8733016 </us-gaap:BusinessAcquisitionsProFormaNetIncomeLoss>
<us-gaap:BusinessAcquisitionProFormaEarningsPerShareDiluted unitRef="usdPershares" contextRef="c90_From1Jan2015To31Dec2015_IronProtectionGroupMember" decimals="2"> -0.60 </us-gaap:BusinessAcquisitionProFormaEarningsPerShareDiluted>
<cann:AgregateConsiderationTableTextBlock contextRef="c94_From1Jan2016To31Dec2016_ChieftonAcquisitionMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> The aggregate consideration was as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">Cash</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">12,249</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px">Common stock</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">69,400</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px">  Aggregate consideration</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">81,649</p> </td></tr> </table></div>
</cann:AgregateConsiderationTableTextBlock>
<us-gaap:CashAndCashEquivalentsAtCarryingValue unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 12249 </us-gaap:CashAndCashEquivalentsAtCarryingValue>
<us-gaap:CommonStockValue unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 69400 </us-gaap:CommonStockValue>
<cann:AggregateConsideration unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 81649 </cann:AggregateConsideration>
<us-gaap:BusinessCombinationSegmentAllocationTableTextBlock contextRef="c94_From1Jan2016To31Dec2016_ChieftonAcquisitionMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> The purchase price allocation was as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Inventory</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">12,249</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px">Intangible assets – Chiefton brand and graphic designs</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">69,400</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">81,649</p> </td></tr> </table></div>
</us-gaap:BusinessCombinationSegmentAllocationTableTextBlock>
<us-gaap:InventoryFinishedGoods unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 12249 </us-gaap:InventoryFinishedGoods>
<us-gaap:DeferredTaxAssetsGoodwillAndIntangibleAssets unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 69400 </us-gaap:DeferredTaxAssetsGoodwillAndIntangibleAssets>
<cann:PurchasePriceAllocation unitRef="usd" contextRef="c85_AsOf31Dec2015_ChieftonAcquisitionMember" decimals="0"> 81649 </cann:PurchasePriceAllocation>
<us-gaap:FinancingReceivablesTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 3.  RECEIVABLES</b></p><br/><p style="margin:0px">Our accounts receivables consisted of the following:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 274.067;"></td><td style="width: 46.2;"></td><td style="width: 95.4;"></td><td style="width: 16.8;"></td><td style="width: 94.2;"></td></tr> <tr><td style="margin-top:0px; width: 274.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 46.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 206.4;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 274.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 46.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 95.4;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 274.067;" valign="top"><p style="margin:0px">Accounts receivable</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 46.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 95.4;" valign="bottom"><p style="margin:0px; text-align: right;">225,314</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">133,692</p> </td></tr> <tr><td style="margin-top:0px; width: 274.067;" valign="top"><p style="margin:0px">Less:  Allowance for doubtful accounts</p> </td><td style="margin-top:0px; width: 46.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 95.4;" valign="bottom"><p style="margin:0px; text-align: right;">(43,100)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">(9,139)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 274.067;" valign="top"><p style="margin:0px">  Total</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 46.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 95.4;" valign="bottom"><p style="margin:0px; text-align: right;">182,214</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">124,553</p> </td></tr> </table><br/><p style="margin:0px">Our note receivable – related party consists of principal of $75,000 and accrued interest of $2,202 due from DB Arizona.  The loan bears interest at 14%, with principal and interest due on May 30, 2017.</p><br/><p style="margin:0px">Future minimum lease payments due to us for the lease of our cultivation property in a suburb of Pueblo, Colorado consist of:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 334.667;"></td><td style="width: 97.8;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">Year ending December 31</p> </td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">2017</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">112,753</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">2018</p> </td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">115,008</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">2019</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">117,308</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">2020</p> </td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">119,655</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">2021</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">126,548</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">591,272</p> </td></tr> </table><br/></div>
</us-gaap:FinancingReceivablesTextBlock>
<us-gaap:AccountsReceivableRelatedPartiesCurrent unitRef="usd" contextRef="c95_AsOf31Dec2016_DBArizonaMember" decimals="0"> 75000 </us-gaap:AccountsReceivableRelatedPartiesCurrent>
<us-gaap:LineOfCreditFacilityIncreaseAccruedInterest unitRef="usd" contextRef="c96_From1Jan2016To31Dec2016_DBArizonaMember" decimals="0"> 2202 </us-gaap:LineOfCreditFacilityIncreaseAccruedInterest>
<us-gaap:LineOfCreditFacilityInterestRateDuringPeriod unitRef="pure" contextRef="c96_From1Jan2016To31Dec2016_DBArizonaMember" decimals="2"> 0.14 </us-gaap:LineOfCreditFacilityInterestRateDuringPeriod>
<us-gaap:LineOfCreditFacilityExpirationDate1 contextRef="c96_From1Jan2016To31Dec2016_DBArizonaMember"> 2017-05-30 </us-gaap:LineOfCreditFacilityExpirationDate1>
<us-gaap:ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> Our accounts receivables consisted of the following:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 274.067;"></td><td style="width: 46.2;"></td><td style="width: 95.4;"></td><td style="width: 16.8;"></td><td style="width: 94.2;"></td></tr> <tr><td style="margin-top:0px; width: 274.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 46.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 206.4;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 274.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 46.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 95.4;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 274.067;" valign="top"><p style="margin:0px">Accounts receivable</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 46.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 95.4;" valign="bottom"><p style="margin:0px; text-align: right;">225,314</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">133,692</p> </td></tr> <tr><td style="margin-top:0px; width: 274.067;" valign="top"><p style="margin:0px">Less:  Allowance for doubtful accounts</p> </td><td style="margin-top:0px; width: 46.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 95.4;" valign="bottom"><p style="margin:0px; text-align: right;">(43,100)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">(9,139)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 274.067;" valign="top"><p style="margin:0px">  Total</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 46.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 95.4;" valign="bottom"><p style="margin:0px; text-align: right;">182,214</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">124,553</p> </td></tr> </table></div>
</us-gaap:ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock>
<us-gaap:AccountsReceivableGrossNoncurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 225314 </us-gaap:AccountsReceivableGrossNoncurrent>
<us-gaap:AccountsReceivableGrossNoncurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 133692 </us-gaap:AccountsReceivableGrossNoncurrent>
<us-gaap:AllowanceForDoubtfulAccountsReceivableNoncurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 43100 </us-gaap:AllowanceForDoubtfulAccountsReceivableNoncurrent>
<us-gaap:AllowanceForDoubtfulAccountsReceivableNoncurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 9139 </us-gaap:AllowanceForDoubtfulAccountsReceivableNoncurrent>
<us-gaap:AccountsReceivableNetNoncurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 182214 </us-gaap:AccountsReceivableNetNoncurrent>
<us-gaap:AccountsReceivableNetNoncurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 124553 </us-gaap:AccountsReceivableNetNoncurrent>
<us-gaap:ScheduleOfFinancingReceivablesMinimumPaymentsTableTextBlock contextRef="c97_From1Jan2016To31Dec2016_PuebloWestPropertyMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> Future minimum lease payments due to us for the lease of our cultivation property in a suburb of Pueblo, Colorado consist of:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 334.667;"></td><td style="width: 97.8;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">Year ending December 31</p> </td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">2017</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">112,753</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">2018</p> </td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">115,008</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">2019</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">117,308</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px">2020</p> </td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">119,655</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 334.667;" valign="top"><p style="margin:0px">2021</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 97.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">126,548</p> </td></tr> <tr><td style="margin-top:0px; width: 334.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 97.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 96;" valign="bottom"><p style="margin:0px; text-align: right;">591,272</p> </td></tr> </table></div>
</us-gaap:ScheduleOfFinancingReceivablesMinimumPaymentsTableTextBlock>
<us-gaap:CapitalLeasesFutureMinimumPaymentsDueCurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 112753 </us-gaap:CapitalLeasesFutureMinimumPaymentsDueCurrent>
<us-gaap:CapitalLeasesFutureMinimumPaymentsDueInTwoYears unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 115008 </us-gaap:CapitalLeasesFutureMinimumPaymentsDueInTwoYears>
<us-gaap:CapitalLeasesFutureMinimumPaymentsDueInThreeYears unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 117308 </us-gaap:CapitalLeasesFutureMinimumPaymentsDueInThreeYears>
<us-gaap:CapitalLeasesFutureMinimumPaymentsDueInFourYears unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 119655 </us-gaap:CapitalLeasesFutureMinimumPaymentsDueInFourYears>
<us-gaap:CapitalLeasesFutureMinimumPaymentsDueInFiveYears unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 126548 </us-gaap:CapitalLeasesFutureMinimumPaymentsDueInFiveYears>
<us-gaap:CapitalLeasesFutureMinimumPaymentsDue unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 591272 </us-gaap:CapitalLeasesFutureMinimumPaymentsDue>
<us-gaap:PropertyPlantAndEquipmentDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 4.  PROPERTY AND EQUIPMENT</b></p><br/><p style="margin:0px">Property and equipment consisted of the following:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 275.867;"></td><td style="width: 44.4;"></td><td style="width: 94.8;"></td><td style="width: 17.4;"></td><td style="width: 94.2;"></td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 206.4;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px">Land</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">812,340</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">812,340</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px">Buildings</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">871,767</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">871,767</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px">Leasehold improvements</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">41,534</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">41,534</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px">Furniture, fixtures and equipment</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">107,741</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">66,044</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,833,382</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,791,685</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px">Less:  Accumulated depreciation</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">(118,579)</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">(66,417)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,714,803</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,725,268</p> </td></tr> </table><br/><p style="margin:0px">Depreciation expense was $51,913 and $38,355, respectively, for the years ended December 31, 2016 and 2015.</p><br/></div>
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<us-gaap:AccumulatedDepreciationDepletionAndAmortizationSaleOfPropertyPlantAndEquipment1 unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 51913 </us-gaap:AccumulatedDepreciationDepletionAndAmortizationSaleOfPropertyPlantAndEquipment1>
<us-gaap:AccumulatedDepreciationDepletionAndAmortizationSaleOfPropertyPlantAndEquipment1 unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 38355 </us-gaap:AccumulatedDepreciationDepletionAndAmortizationSaleOfPropertyPlantAndEquipment1>
<us-gaap:PropertyPlantAndEquipmentTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> Property and equipment consisted of the following:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 275.867;"></td><td style="width: 44.4;"></td><td style="width: 94.8;"></td><td style="width: 17.4;"></td><td style="width: 94.2;"></td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 206.4;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px">Land</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">812,340</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">812,340</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px">Buildings</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">871,767</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">871,767</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px">Leasehold improvements</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">41,534</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">41,534</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px">Furniture, fixtures and equipment</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">107,741</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">66,044</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,833,382</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,791,685</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px">Less:  Accumulated depreciation</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">(118,579)</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">(66,417)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,714,803</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,725,268</p> </td></tr> </table></div>
</us-gaap:PropertyPlantAndEquipmentTextBlock>
<us-gaap:Land unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 812340 </us-gaap:Land>
<us-gaap:Land unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 812340 </us-gaap:Land>
<us-gaap:BuildingsAndImprovementsGross unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 871767 </us-gaap:BuildingsAndImprovementsGross>
<us-gaap:BuildingsAndImprovementsGross unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 871767 </us-gaap:BuildingsAndImprovementsGross>
<us-gaap:LeaseholdImprovementsGross unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 41534 </us-gaap:LeaseholdImprovementsGross>
<us-gaap:LeaseholdImprovementsGross unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 41534 </us-gaap:LeaseholdImprovementsGross>
<us-gaap:FurnitureAndFixturesGross unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 107741 </us-gaap:FurnitureAndFixturesGross>
<us-gaap:FurnitureAndFixturesGross unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 66044 </us-gaap:FurnitureAndFixturesGross>
<us-gaap:PropertyPlantAndEquipmentGross unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 1833382 </us-gaap:PropertyPlantAndEquipmentGross>
<us-gaap:PropertyPlantAndEquipmentGross unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1791685 </us-gaap:PropertyPlantAndEquipmentGross>
<us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 118579 </us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment>
<us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 66417 </us-gaap:AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment>
<us-gaap:IntangibleAssetsDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px; page-break-before:always"><b>NOTE 5.   INTANGIBLE ASSETS AND GOODWILL</b></p><br/><p style="margin:0px"><b>Intangible Assets</b></p><br/><p style="margin:0px">Intangible assets consisted of the following:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 214.067;"></td><td style="width: 16.8;"></td><td style="width: 77.4;"></td><td style="width: 16.8;"></td><td style="width: 90.6;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 18;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px"><b>December 31, 2016</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 77.4;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Gross</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90.6;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Accumulated Amortization</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Net</b></p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Estimated Life</b></p> <p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;">(in years)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px">Chiefton brand and graphic designs</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 77.4;" valign="bottom"><p style="margin:0px; text-align: right;">69,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">44,017</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">25,383</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">2</p> </td></tr> </table><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 214.067;"></td><td style="width: 16.8;"></td><td style="width: 76.8;"></td><td style="width: 16.8;"></td><td style="width: 90.6;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 19.2;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px"><b>December 31, 2015</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Gross</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90.6;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Accumulated Amortization</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Net</b></p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Estimated Life</b></p> <p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;">(in years)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Customer relationships (IPG)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,000,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">76,712</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">923,288</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">10</p> </td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Marketing-related (IPG)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">200,000</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">30,685</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">169,315</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">5</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Non-compete agreements (IPG)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">500,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">127,854</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">372,146</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3</p> </td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Chiefton brand and graphic designs</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">69,400</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">9,222</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">60,178</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">2</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">  Intangible assets, net</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,769,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">244,473</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,524,927</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> </table><br/><p style="margin:0px">The Chiefton brand and graphic designs intangible asset will be fully amortized during the year ending December 31, 2017.</p><br/><p style="margin:0px">Amortization expense was $342,302 and $244,473 for the years ended December 31, 2016 and 2015.</p><br/><p style="margin:0px"><b>Goodwill</b></p><br/><p style="margin:0px">In connection with our acquisition of IPG, we recorded goodwill of $187,000.</p><br/><p style="margin:0px"><b>Impairment of Intangible Assets and Goodwill</b></p><br/><p style="margin:0px">During the year ended December 31, 2016, we recorded an impairment charge for goodwill and the remaining unamortized value of the IPG intangible assets.  Colorado placed a limit on the number of licenses they would issue for cannabis cultivation facilities, which resulted in the aggregation of licenses by just a few companies.  Colorado did not, however, limit the level of production for these facilities.  As a result, since IPG was acquired, and the related intangible assets and goodwill were valued, there has been significant growth in the supply of cannabis in the Colorado market, which has led to significantly lower wholesale prices for cannabis towards the end of 2016 compared to earlier in the year and in 2015.  As a result of lower prices and aggregation of operations, cultivation companies are not using outside security services to the extent originally projected.  Due to these changes to the Colorado market, as of December 31, 2016, expected future cash flows for IPG’s operations in Colorado are estimated to remain at or near break even.  Accordingly, we have recorded an impairment charge of $1,344,242.</p><br/></div>
</us-gaap:IntangibleAssetsDisclosureTextBlock>
<us-gaap:AdjustmentForAmortization unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 342302 </us-gaap:AdjustmentForAmortization>
<us-gaap:AdjustmentForAmortization unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 244473 </us-gaap:AdjustmentForAmortization>
<us-gaap:Goodwill unitRef="usd" contextRef="c98_AsOf31Dec2016_IPGAcquisitionMember" decimals="0"> 187000 </us-gaap:Goodwill>
<us-gaap:ImpairmentOfIntangibleAssetsFinitelived unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 1344242 </us-gaap:ImpairmentOfIntangibleAssetsFinitelived>
<us-gaap:ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> Intangible assets consisted of the following:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 214.067;"></td><td style="width: 16.8;"></td><td style="width: 77.4;"></td><td style="width: 16.8;"></td><td style="width: 90.6;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 18;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px"><b>December 31, 2016</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 77.4;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Gross</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90.6;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Accumulated Amortization</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Net</b></p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Estimated Life</b></p> <p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;">(in years)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px">Chiefton brand and graphic designs</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 77.4;" valign="bottom"><p style="margin:0px; text-align: right;">69,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">44,017</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">25,383</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">2</p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 214.067;"></td><td style="width: 16.8;"></td><td style="width: 76.8;"></td><td style="width: 16.8;"></td><td style="width: 90.6;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 19.2;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px"><b>December 31, 2015</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Gross</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90.6;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Accumulated Amortization</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Net</b></p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;"><b>Estimated Life</b></p> <p style="margin:0px; padding-left:-7.2px; padding-right:-7.067px; text-align: center;">(in years)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Customer relationships (IPG)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,000,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">76,712</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">923,288</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">10</p> </td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Marketing-related (IPG)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">200,000</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">30,685</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">169,315</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">5</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Non-compete agreements (IPG)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">500,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">127,854</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">372,146</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3</p> </td></tr> <tr><td style="margin-top:0px; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">Chiefton brand and graphic designs</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">69,400</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">9,222</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">60,178</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">2</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 214.067;" valign="bottom"><p style="margin:0px; padding-right:-6.333px">  Intangible assets, net</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 76.8;" valign="bottom"><p style="margin:0px; text-align: right;">1,769,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 90.6;" valign="bottom"><p style="margin:0px; text-align: right;">244,473</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,524,927</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> </table></div>
</us-gaap:ScheduleOfIntangibleAssetsAndGoodwillTableTextBlock>
<us-gaap:FiniteLivedIntangibleAssetsGross unitRef="usd" contextRef="c99_AsOf31Dec2016_IntellectualPropertyMember" decimals="0"> 69400 </us-gaap:FiniteLivedIntangibleAssetsGross>
<us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization unitRef="usd" contextRef="c99_AsOf31Dec2016_IntellectualPropertyMember" decimals="0"> 44017 </us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization>
<us-gaap:FiniteLivedIntangibleAssetsNet unitRef="usd" contextRef="c99_AsOf31Dec2016_IntellectualPropertyMember" decimals="0"> 25383 </us-gaap:FiniteLivedIntangibleAssetsNet>
<us-gaap:FiniteLivedIntangibleAssetUsefulLife contextRef="c100_From1Jan2016To31Dec2016_IntellectualPropertyMember"> P2Y </us-gaap:FiniteLivedIntangibleAssetUsefulLife>
<us-gaap:FiniteLivedIntangibleAssetsGross unitRef="usd" contextRef="c101_AsOf31Dec2015_CustomerRelationshipsMember" decimals="0"> 1000000 </us-gaap:FiniteLivedIntangibleAssetsGross>
<us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization unitRef="usd" contextRef="c101_AsOf31Dec2015_CustomerRelationshipsMember" decimals="0"> 76712 </us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization>
<us-gaap:FiniteLivedIntangibleAssetsNet unitRef="usd" contextRef="c101_AsOf31Dec2015_CustomerRelationshipsMember" decimals="0"> 923288 </us-gaap:FiniteLivedIntangibleAssetsNet>
<us-gaap:FiniteLivedIntangibleAssetUsefulLife contextRef="c102_From1Jan2015To31Dec2015_CustomerRelationshipsMember"> P10Y </us-gaap:FiniteLivedIntangibleAssetUsefulLife>
<us-gaap:FiniteLivedIntangibleAssetsGross unitRef="usd" contextRef="c103_AsOf31Dec2015_MarketingRelatedIntangibleAssetsMember" decimals="0"> 200000 </us-gaap:FiniteLivedIntangibleAssetsGross>
<us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization unitRef="usd" contextRef="c103_AsOf31Dec2015_MarketingRelatedIntangibleAssetsMember" decimals="0"> 30685 </us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization>
<us-gaap:FiniteLivedIntangibleAssetsNet unitRef="usd" contextRef="c103_AsOf31Dec2015_MarketingRelatedIntangibleAssetsMember" decimals="0"> 169315 </us-gaap:FiniteLivedIntangibleAssetsNet>
<us-gaap:FiniteLivedIntangibleAssetUsefulLife contextRef="c104_From1Jan2015To31Dec2015_MarketingRelatedIntangibleAssetsMember"> P5Y </us-gaap:FiniteLivedIntangibleAssetUsefulLife>
<us-gaap:FiniteLivedIntangibleAssetsGross unitRef="usd" contextRef="c105_AsOf31Dec2015_NoncompeteAgreementsMember" decimals="0"> 500000 </us-gaap:FiniteLivedIntangibleAssetsGross>
<us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization unitRef="usd" contextRef="c105_AsOf31Dec2015_NoncompeteAgreementsMember" decimals="0"> 127854 </us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization>
<us-gaap:FiniteLivedIntangibleAssetsNet unitRef="usd" contextRef="c105_AsOf31Dec2015_NoncompeteAgreementsMember" decimals="0"> 372146 </us-gaap:FiniteLivedIntangibleAssetsNet>
<us-gaap:FiniteLivedIntangibleAssetUsefulLife contextRef="c106_From1Jan2015To31Dec2015_NoncompeteAgreementsMember"> P3Y </us-gaap:FiniteLivedIntangibleAssetUsefulLife>
<us-gaap:FiniteLivedIntangibleAssetsGross unitRef="usd" contextRef="c107_AsOf31Dec2015_IntellectualPropertyMember" decimals="0"> 69400 </us-gaap:FiniteLivedIntangibleAssetsGross>
<us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization unitRef="usd" contextRef="c107_AsOf31Dec2015_IntellectualPropertyMember" decimals="0"> 9222 </us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization>
<us-gaap:FiniteLivedIntangibleAssetsNet unitRef="usd" contextRef="c107_AsOf31Dec2015_IntellectualPropertyMember" decimals="0"> 60178 </us-gaap:FiniteLivedIntangibleAssetsNet>
<us-gaap:FiniteLivedIntangibleAssetUsefulLife contextRef="c108_From1Jan2015To31Dec2015_IntellectualPropertyMember"> P2Y </us-gaap:FiniteLivedIntangibleAssetUsefulLife>
<us-gaap:FiniteLivedIntangibleAssetsGross unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1769400 </us-gaap:FiniteLivedIntangibleAssetsGross>
<us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 244473 </us-gaap:FiniteLivedIntangibleAssetsAccumulatedAmortization>
<us-gaap:FiniteLivedIntangibleAssetsNet unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1524927 </us-gaap:FiniteLivedIntangibleAssetsNet>
<us-gaap:DebtDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 6.    DEBT</b></p><br/><p style="margin:0px"><b>Infinity Note – Related Party</b></p><br/><p style="margin:0px">In February 2015, we issued a senior secured note to Infinity Capital, as amended in April 2015, bearing interest at 5% payable monthly in arrears commencing June 30, 2015, until the maturity date of August 31, 2015 (the “Infinity Note”).   On December 31, 2016, the Infinity Note was amended to aggregate principal and interest, and extend the due date of principal and interest to September 21, 2018.  On July 1, 2015, the outstanding principal and interest of $309,000 was settled by our issuing a 10% private placement note.  Subsequent to the settlement on July 1, 2015, we continued to borrow under the Infinity Note through September 1, 2016. No additional advances may be made after December 31, 2016. The Infinity Note is collateralized by a security interest in substantially all of our assets. Interest expense for the Infinity Note for the years ended December 31, 2016 and 2015, was approximately $61,000 and $60,000, respectively.</p><br/><p style="margin:0px"><b>Notes Payable</b></p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 275.867;"></td><td style="width: 44.4;"></td><td style="width: 94.8;"></td><td style="width: 17.4;"></td><td style="width: 94.2;"></td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 206.4;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">12% Notes</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">2,750,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">10% Notes</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">659,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">14% Greenhouse Mortgage</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">600,000</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">8.5% Pueblo Mortgage</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">158,307</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">2,750,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">1,417,307</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Unamortized debt discount</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">(1,934,750)</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">(279,435)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">815,250</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">1,137,872</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Less: Current portion</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">(986,475)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Long-term portion</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">815,250</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">151,397</p> </td></tr> </table><br/><p style="margin:0px; page-break-before:always"><i><font style="text-decoration:underline">12% Notes</font></i></p><br/><p style="margin:0px">In September 2016, we completed a $3,000,000 private placement pursuant to a promissory note and warrant purchase agreement (the “12% Agreement”) with certain accredited investors, bearing interest at 12%, with principal due September 21, 2018, and interest payable quarterly (each such note, a “12% Note,” and collectively, the “12% Notes”).  In the event of default, the interest rate increases to 18%.  The 12% Notes are collateralized by a security interest in substantially all of our assets.  We may prepay the 12% Notes at any time, but in any event must pay at least one year of interest.</p><br/><p style="margin:0px">Subject to the terms and conditions of the 12% Agreement, each investor was granted fully-vested warrants equal to their note principal times three (the “12% Warrants”), or nine million warrants, with a life of three years.  4.5 million warrants have an exercise price of $0.35 per share and the other 4.5 million warrants have an exercise price of $0.70 per share.  Should we issue any equity-based instruments at a price lower than the exercise price(s) of the 12% Warrants, other than under our Incentive Plan, the exercise price(s) of the 12% Warrants will be adjusted to the lower price.  The 12% Warrants may be exercised at the option of the holder (a) by paying cash, (b) by applying the amount due under the 12% Notes as consideration, or (c) if there is no effective registration statement for the 12% Warrants within six months of being granted, the holder may exercise on a cashless basis.  The registration statement related to the 12% Warrants was declared effective on December 23, 2016.  Since the 12% Warrants include a clause requiring repricing, the warrants are considered to be a derivative that is recorded as a liability at fair value.</p><br/><p style="margin:0px">We received $2,450,000 of cash for issuing the 12% Notes.  $300,000 of 10% Notes and $250,000 of the 14% Greenhouse Mortgage were converted into 12% Notes.  We concluded that these conversions met the criteria for a debt extinguishment and, accordingly, recorded a loss on extinguishment of $1,728,280 during the year ended December 31, 2016.  The loss on extinguishment represents the fair value of the 12% Warrants issued to the previous 10% Note holders and the 14% Greenhouse Mortgage lender.  The fair value of the 12% Warrants not associated with the conversions was recorded as a debt discount of $2,450,000 and interest expense of $5,189,000.  The 12% Notes are otherwise treated as conventional debt.</p><br/><p style="margin:0px"><i><font style="text-decoration:underline">8% Notes</font></i></p><br/><p style="margin:0px">In August 2016, we completed a private placement pursuant to a promissory note and warrant purchase agreement (the “8% Notes”) with two accredited investors, bearing interest at 8%, payable on demand by the lenders.  Subject to the terms of the 8% Notes, we issued 100,000 warrants having an exercise price of $0.78 per share, with a life of three years.  We received cash of $50,000.  The debt was treated as conventional debt and the fair value of the warrants is included in additional paid-in capital.  Since the 8% Notes were payable on demand, the $31,100 relative fair value of the warrants was expensed immediately, included in amortization of debt discount on the consolidated statements of operations for the year ended December 31, 2016.  One of the 8% Notes, of $25,000, was with one of our board members.  Both 8% Notes were paid off with proceeds from the 12% Notes in September 2016.</p><br/><p style="margin:0px"><i><font style="text-decoration:underline">10% Notes</font></i></p><br/><p style="margin:0px">In September 2016, we extinguished the 10% Notes by paying cash of $359,000 and converting $300,000 into 12% Notes.</p><br/><p style="margin:0px">In 2015, we completed a private placement pursuant to a promissory note and warrant purchase agreement (the “10% Agreement”) with certain accredited investors, bearing interest at 10% payable quarterly (each such note, a “10% Note,” and collectively, the “10% Notes”).  Subject to the terms and conditions of the 10% Agreement, each investor was granted fully-vested warrants equal to their note principal divided by two (the “10% Warrants”) (with standard dilution clauses).  The 10% Warrants are exercisable for a period of eighteen months after grant date and have an exercise price of $1.08 per share.  The debt was treated as conventional debt.  The 10% Notes were collateralized by a security interest in substantially all of our assets.</p><br/><p style="margin:0px">$309,000 of the 10% Notes were due to a related party, Infinity Capital.  During the years ended December 31, 2016 and 2015, approximately $22,500 and $14,000, respectively, of interest expense under the 10% Notes related to Infinity Capital.  The Infinity Capital portion of the principle and accrued interest of the 10% Notes was settled for cash of $347,000, in September 2016.</p><br/><p style="margin:0px">On June 3, 2016, we reached an agreement with the 10% Note holders to extend the maturity date from May 1, 2016 to January 31, 2017.  In exchange for the extension, we issued the holders an aggregate of 659,000 additional warrants to purchase our common stock at $1.07 per share for a period of five years, with an aggregate fair value of $358,000, determined using Black-Scholes, a risk-free rate of 1.2% and volatility of 151%.  We concluded that this modification of the debt instruments met the criteria for a debt extinguishment and, accordingly, recorded additional paid-in capital and a loss on extinguishment of debt of $358,000 during the year ended December 31, 2016.  Absent the warrants, the fair value of the new debt remained the same as the fair value of the original debt.  In December 2016, the expiration date of the remaining original warrants was extended from December 23, 2016 to December 31, 2017, resulting in expense of $84,000, included in loss on extinguishment of debt during the year ended December 31, 2016.</p><br/><p style="margin:0px; page-break-before:always"><i><font style="text-decoration:underline">14% Greenhouse Mortgage</font></i></p><br/><p style="margin:0px">In September 2016, we extinguished the 14% Greenhouse Mortgage by paying cash of $350,000 and converting $250,000 into 12% Notes.  The remaining unamortized debt discount of $13,280 was included in loss on extinguishment of debt in the consolidated statements of operations during the year ended December 31, 2016.</p><br/><p style="margin:0px">In October 2014, we executed a mortgage on The Greenhouse in the amount of $600,000, bearing 14.0% interest payable monthly, with a maturity date of October 21, 2016 (the “14% Greenhouse Mortgage”).  The debt was treated as conventional debt.</p><br/><p style="margin:0px">In addition, we granted warrants to Evans Street Lendco LLC (“Evans Lendco”), the note holder of the 14% Greenhouse Mortgage, which were set to expire on October 21, 2016.  The warrants vested immediately and allowed for Evans Lendco to purchase 600,000 shares of our common stock at a price of $4.40 per share, (with standard dilution clauses).  Due to the drop in our stock price, on July 29, 2015, we agreed with Evans Lendco to replace the warrants previously issued to Evans Lendco with warrants to purchase 225,000 shares of our stock at $1.20 per share with a term of two years.  The estimated fair value of the replacement warrants was less than the fair value of the original warrants on their date of grant.  Accordingly, we continued to amortize the remaining fair value of the original warrants over the remaining life of the underlying debt until the debt was extinguished in September 2016, at which time the remaining debt discount was fully expensed.</p><br/><p style="margin:0px"><i><font style="text-decoration:underline">8.5% Pueblo Mortgage</font></i></p><br/><p style="margin:0px">In September 2016, we extinguished the 8.5% Pueblo Mortgage by paying cash of $153,189.</p><br/><p style="margin:0px">In December 2013, we executed a mortgage on our Pueblo West Property in the amount of $170,000, bearing 8.5% interest with monthly principal and interest payments totaling $1,674, with the balance due on December 31, 2018 (the “8.5% Pueblo Mortgage”). This note was convertible at any time at $5.00 per share. </p><br/><p style="margin:0px">Derivative treatment was not required, as the conversion feature meets the scope exception. The conversion feature was not beneficial, because the conversion price was higher than the stock price on the commitment date.  Accordingly, we treated the Pueblo Mortgage as conventional debt.</p><br/><p style="margin:0px"><i><font style="text-decoration:underline">12% Convertible Notes</font></i></p><br/><p style="margin:0px"><i>Conversion of 12% Convertible Notes</i></p><br/><p style="margin:0px">During the year ended December 31, 2015, lenders converted $321,123 of 12% Convertible Notes for 64,225 shares of our common stock.  The December 2013 Issuance and the January 2014 Issuance (collectively, the “12% Convertible Notes”) included a provision that if the trading stock price exceeded $10 for twenty consecutive trading days and the daily volume for those twenty consecutive trading days exceeds 25,000 shares, then the 12% Convertible Notes convert into shares of our common stock on or after December 1, 2015.  As of April 24, 2014, these parameters were met.  On December 1, 2015, the remaining $1,330,000 of convertible notes was automatically converted to 266,000 shares of our common stock.</p><br/><p style="margin:0px"><i>December 2013 Issuance</i></p><br/><p style="margin:0px">In December 2013, we entered into convertible promissory notes with various third parties totaling $530,000 (the “December 2013 Issuance”). The principal amounts of these notes ranged between $10,000 and $150,000. The notes required quarterly interest payments at 12%, and were convertible into shares of our common stock at a conversion rate of $5.00 per share (with standard dilution clauses). </p><br/><p style="margin:0px">Derivative treatment was not required, as the conversion feature met the scope exception. The conversion feature was not beneficial, because the conversion price was higher than the stock price on the commitment date.  Accordingly, we treated the December 2013 Issuance as conventional debt.</p><br/><p style="margin:0px"><i>January 2014 Issuance</i></p><br/><p style="margin:0px">In January 2014, we entered into convertible promissory notes with various third parties totaling $1,605,000 (the “January 2014 Issuance”). The principal amounts of these notes ranged between $10,000 and $200,000. The notes required quarterly interest payments at 12%, and were convertible into shares of our common stock at a conversion rate of $5.00 per share (with standard dilution clauses).</p><br/><p style="margin:0px; page-break-before:always">Derivative treatment was not required, as the conversion feature met the scope exception.  Since the initial conversion price was less than the market value of the common stock at the time of issuance, it was determined that a beneficial conversion feature existed. The intrinsic value of the beneficial conversion feature and the combined value of the debt discount resulted in a value greater than the value of the debt and, as such, the total discount was limited to the value of the debt balance of $1,605,000.</p><br/><p style="margin:0px">The Infinity Note and the 12% Notes, totaling $4,120,126, are due and payable on September 21, 2018.</p><br/></div>
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<us-gaap:ConvertibleDebt unitRef="usd" contextRef="c135_AsOf31Oct2014_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="0"> 600000 </us-gaap:ConvertibleDebt>
<us-gaap:DebtInstrumentInterestRateEffectivePercentage unitRef="pure" contextRef="c135_AsOf31Oct2014_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="3"> 0.140 </us-gaap:DebtInstrumentInterestRateEffectivePercentage>
<us-gaap:DebtConversionConvertedInstrumentSharesIssued1 unitRef="shares" contextRef="c136_From1Oct2014To31Oct2014_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="INF"> 600000 </us-gaap:DebtConversionConvertedInstrumentSharesIssued1>
<invest:InvestmentWarrantsExercisePrice unitRef="usdPershares" contextRef="c136_From1Oct2014To31Oct2014_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="2"> 4.40 </invest:InvestmentWarrantsExercisePrice>
<us-gaap:DebtConversionConvertedInstrumentSharesIssued1 unitRef="shares" contextRef="c137_From29Jul2015To29Jul2015_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="INF"> 225000 </us-gaap:DebtConversionConvertedInstrumentSharesIssued1>
<invest:InvestmentWarrantsExercisePrice unitRef="usdPershares" contextRef="c137_From29Jul2015To29Jul2015_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="2"> 1.20 </invest:InvestmentWarrantsExercisePrice>
<us-gaap:RepaymentsOfConvertibleDebt unitRef="usd" contextRef="c138_From1Sep2016To30Sep2016_EightPointFivePercentConvertibleDebtMember_PuebloWestPropertyMember" decimals="0"> 153189 </us-gaap:RepaymentsOfConvertibleDebt>
<us-gaap:DebtInstrumentFaceAmount unitRef="usd" contextRef="c139_AsOf31Jan2014_EightPointFivePercentConvertibleDebtMember_PuebloWestPropertyMember" decimals="0"> 170000 </us-gaap:DebtInstrumentFaceAmount>
<us-gaap:DebtInstrumentInterestRateEffectivePercentage unitRef="pure" contextRef="c139_AsOf31Jan2014_EightPointFivePercentConvertibleDebtMember_PuebloWestPropertyMember" decimals="3"> 0.085 </us-gaap:DebtInstrumentInterestRateEffectivePercentage>
<cann:DebtInstrumentMonthlyPayment unitRef="usd" contextRef="c139_AsOf31Jan2014_EightPointFivePercentConvertibleDebtMember_PuebloWestPropertyMember" decimals="0"> 1674 </cann:DebtInstrumentMonthlyPayment>
<us-gaap:DebtInstrumentConvertibleConversionPrice1 unitRef="usdPershares" contextRef="c139_AsOf31Jan2014_EightPointFivePercentConvertibleDebtMember_PuebloWestPropertyMember" decimals="2"> 5.00 </us-gaap:DebtInstrumentConvertibleConversionPrice1>
<us-gaap:DebtConversionOriginalDebtAmount1 unitRef="usd" contextRef="c140_From1Jan2015To31Dec2015_TwelvePercentConvertibleNotesMember" decimals="0"> 321123 </us-gaap:DebtConversionOriginalDebtAmount1>
<us-gaap:DebtConversionConvertedInstrumentSharesIssued1 unitRef="shares" contextRef="c140_From1Jan2015To31Dec2015_TwelvePercentConvertibleNotesMember" decimals="INF"> 64225 </us-gaap:DebtConversionConvertedInstrumentSharesIssued1>
<us-gaap:DebtInstrumentConvertibleTermsOfConversionFeature contextRef="c140_From1Jan2015To31Dec2015_TwelvePercentConvertibleNotesMember"> The December 2013 Issuance and the January 2014 Issuance (collectively, the “12% Convertible Notes”) included a provision that if the trading stock price exceeded $10 for twenty consecutive trading days and the daily volume for those twenty consecutive trading days exceeds 25,000 shares, then the 12% Convertible Notes convert into shares of our common stock on or after December 1, 2015. </us-gaap:DebtInstrumentConvertibleTermsOfConversionFeature>
<cann:DebtInstrumentConvertibleThresholdTradingVolumne unitRef="shares" contextRef="c140_From1Jan2015To31Dec2015_TwelvePercentConvertibleNotesMember" decimals="INF"> 25000 </cann:DebtInstrumentConvertibleThresholdTradingVolumne>
<us-gaap:DebtConversionOriginalDebtAmount1 unitRef="usd" contextRef="c141_From1Jan2015To31Dec2015_TwelvePercentConvertibleNotesMember_AutomaticConversionMember" decimals="0"> 1330000 </us-gaap:DebtConversionOriginalDebtAmount1>
<us-gaap:DebtConversionConvertedInstrumentSharesIssued1 unitRef="shares" contextRef="c141_From1Jan2015To31Dec2015_TwelvePercentConvertibleNotesMember_AutomaticConversionMember" decimals="INF"> 266000 </us-gaap:DebtConversionConvertedInstrumentSharesIssued1>
<cann:DebtInstrumentIndividualPrincipalAmount unitRef="usd" contextRef="c142_AsOf31Dec2013_TwelvePercentConvertibleNotesMember" decimals="0"> 530000 </cann:DebtInstrumentIndividualPrincipalAmount>
<cann:DebtInstrumentIndividualPrincipalAmount unitRef="usd" contextRef="c143_AsOf31Dec2013_TwelvePercentConvertibleNotesMember_MinimumMember" decimals="0"> 10000 </cann:DebtInstrumentIndividualPrincipalAmount>
<cann:DebtInstrumentIndividualPrincipalAmount unitRef="usd" contextRef="c144_AsOf31Dec2013_TwelvePercentConvertibleNotesMember_MaximumMember" decimals="0"> 150000 </cann:DebtInstrumentIndividualPrincipalAmount>
<us-gaap:DebtInstrumentInterestRateEffectivePercentage unitRef="pure" contextRef="c142_AsOf31Dec2013_TwelvePercentConvertibleNotesMember" decimals="2"> 0.12 </us-gaap:DebtInstrumentInterestRateEffectivePercentage>
<us-gaap:DebtInstrumentConvertibleConversionPrice1 unitRef="usdPershares" contextRef="c142_AsOf31Dec2013_TwelvePercentConvertibleNotesMember" decimals="2"> 5.00 </us-gaap:DebtInstrumentConvertibleConversionPrice1>
<cann:DebtInstrumentIndividualPrincipalAmount unitRef="usd" contextRef="c145_AsOf31Jan2014_TwelvePercentConvertibleNotesMember" decimals="0"> 1605000 </cann:DebtInstrumentIndividualPrincipalAmount>
<cann:DebtInstrumentIndividualPrincipalAmount unitRef="usd" contextRef="c146_AsOf31Jan2014_TwelvePercentConvertibleNotesMember_MinimumMember" decimals="0"> 10000 </cann:DebtInstrumentIndividualPrincipalAmount>
<cann:DebtInstrumentIndividualPrincipalAmount unitRef="usd" contextRef="c147_AsOf31Jan2014_TwelvePercentConvertibleNotesMember_MaximumMember" decimals="0"> 200000 </cann:DebtInstrumentIndividualPrincipalAmount>
<us-gaap:DebtInstrumentInterestRateEffectivePercentage unitRef="pure" contextRef="c145_AsOf31Jan2014_TwelvePercentConvertibleNotesMember" decimals="2"> 0.12 </us-gaap:DebtInstrumentInterestRateEffectivePercentage>
<us-gaap:DebtInstrumentConvertibleConversionPrice1 unitRef="usdPershares" contextRef="c145_AsOf31Jan2014_TwelvePercentConvertibleNotesMember" decimals="2"> 5.00 </us-gaap:DebtInstrumentConvertibleConversionPrice1>
<us-gaap:DebtInstrumentUnamortizedDiscount unitRef="usd" contextRef="c145_AsOf31Jan2014_TwelvePercentConvertibleNotesMember" decimals="0"> 1605000 </us-gaap:DebtInstrumentUnamortizedDiscount>
<us-gaap:ConvertibleDebt unitRef="usd" contextRef="c145_AsOf31Jan2014_TwelvePercentConvertibleNotesMember" decimals="0"> 4120126 </us-gaap:ConvertibleDebt>
<us-gaap:ScheduleOfDebtInstrumentsTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> Notes Payable<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 275.867;"></td><td style="width: 44.4;"></td><td style="width: 94.8;"></td><td style="width: 17.4;"></td><td style="width: 94.2;"></td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 206.4;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 44.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">12% Notes</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">2,750,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">10% Notes</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">659,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">14% Greenhouse Mortgage</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">600,000</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">8.5% Pueblo Mortgage</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">158,307</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">2,750,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">1,417,307</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Unamortized debt discount</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">(1,934,750)</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">(279,435)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">815,250</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">1,137,872</p> </td></tr> <tr><td style="margin-top:0px; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Less: Current portion</p> </td><td style="margin-top:0px; width: 44.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">(986,475)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 275.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Long-term portion</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 44.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.8;" valign="top"><p style="margin:0px; text-align: right;">815,250</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 94.2;" valign="top"><p style="margin:0px; text-align: right;">151,397</p> </td></tr> </table></div>
</us-gaap:ScheduleOfDebtInstrumentsTextBlock>
<us-gaap:DebtInstrumentCarryingAmount unitRef="usd" contextRef="c148_AsOf31Dec2016_TwelvePercentConvertibleNotesMember" decimals="0"> 2750000 </us-gaap:DebtInstrumentCarryingAmount>
<us-gaap:DebtInstrumentCarryingAmount unitRef="usd" contextRef="c149_AsOf31Dec2015_TenPercentageConvertibleNoteMember" decimals="0"> 659000 </us-gaap:DebtInstrumentCarryingAmount>
<us-gaap:DebtInstrumentCarryingAmount unitRef="usd" contextRef="c150_AsOf31Dec2015_FourteenPercentConvertibleNoteMember_TheGreenhouseMember" decimals="0"> 600000 </us-gaap:DebtInstrumentCarryingAmount>
<us-gaap:DebtInstrumentCarryingAmount unitRef="usd" contextRef="c151_AsOf31Dec2015_EightPointFivePercentConvertibleMember_PuebloWestPropertyMember" decimals="0"> 158307 </us-gaap:DebtInstrumentCarryingAmount>
<us-gaap:DebtInstrumentCarryingAmount unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 2750000 </us-gaap:DebtInstrumentCarryingAmount>
<us-gaap:DebtInstrumentCarryingAmount unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1417307 </us-gaap:DebtInstrumentCarryingAmount>
<us-gaap:DebtInstrumentUnamortizedDiscount unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 1934750 </us-gaap:DebtInstrumentUnamortizedDiscount>
<us-gaap:DebtInstrumentUnamortizedDiscount unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 279435 </us-gaap:DebtInstrumentUnamortizedDiscount>
<us-gaap:LongTermDebt unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 815250 </us-gaap:LongTermDebt>
<us-gaap:LongTermDebt unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1137872 </us-gaap:LongTermDebt>
<us-gaap:LongTermDebtCurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 986475 </us-gaap:LongTermDebtCurrent>
<us-gaap:LongTermDebtNoncurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 815250 </us-gaap:LongTermDebtNoncurrent>
<us-gaap:LongTermDebtNoncurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 151397 </us-gaap:LongTermDebtNoncurrent>
<cann:AccruedStockPayableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 7.  ACCRUED STOCK PAYABLE</b></p><br/><p style="margin:0px">The following tables summarize the changes in accrued common stock payable: </p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 384;"></td><td style="width: 16.667;"></td><td style="width: 87;"></td><td style="width: 18;"></td><td style="width: 90;"></td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Amount</b></p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">524,042</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">350,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Architectural Services - issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(114,693)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(50,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">IPG acquisition – accrued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">1,054,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">500,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">IPG acquisition – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(210,800)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(100,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Chiefton acquisition – accrued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">69,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">80,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement – accrual</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">723,851</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement - issued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(663,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(150,000)</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Employment agreements - accrued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">131,608</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">50,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Consulting services - accrued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">18,012</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">50,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2015</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">1,532,420</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">730,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement – accrual</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">192,800</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(663,000)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(150,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Consulting services – accrual</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">6,988</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Consulting services – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(25,000)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(50,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Employment agreements – accrual</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">567</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Employment agreements – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(132,175)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(50,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">IPG acquisition – issued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(843,200)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(400,000)</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Chiefton acquisition – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(69,400)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(80,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31,2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> </table><br/><p style="margin:0px"><b>Feinsod Agreement</b></p><br/><p style="margin:0px">On August 4, 2014, we entered into an agreement with Michael Feinsod in consideration for serving as Executive Chairman of the Board and as a member of the Board and pursuant to the terms of the Executive Board and Director Agreement (the “Feinsod Agreement”).  The Board approved the issuance to Infinity Capital of (a) 200,000 shares of our common stock on August 4, 2014; (b) 1,000,000 shares of our common stock upon the uplisting of our common stock to the OTC Market’s OTCQB; (c) 150,000 shares of our common stock on August 4, 2015; and (d) 150,000 shares of our common stock on August 4, 2016.  Mr. Feinsod must remain a member of the Board in order for the common stock to be issued.  In addition, the Feinsod Agreement required the issuance of a number of shares of our common stock to Infinity Capital equal to 10% of any new issuances not to exceed 600,000 shares of our common stock in the aggregate during the time that Mr. Feinsod remains a member of the Board (the “New Issuance Allowance”).  Under the terms of the Feinsod Agreement, the New Issuance Allowance would not be triggered upon issuances relating to convertible securities existing as of the date of the Feinsod Agreement.  For illustrative purposes, if we issue 7,000,000 new shares of common stock, then the New Issuance Allowance issued to Infinity Capital would be capped at 600,000 shares of our common stock.  No shares have been issued under the New Issuance Allowance.</p><br/><p style="margin:0px">The 1,000,000 shares of our common stock were valued at $2.97 per share, based on the closing price of our common stock of $3.49 on April 27, 2015, and then reduced by 15% due to restrictions on the ability to trade our shares.  The other shares under the Feinsod Agreement were valued at $4.42 per share, based on the closing price of our common stock of $5.20 on August 4, 2014, and then reduced by 15% due to restriction on the ability to trade our common stock.  We recognized expense for the unissued shares ratably over the vesting period.</p><br/><p style="margin:0px"><b>Architectural Services</b></p><br/><p style="margin:0px">On December 12, 2014, we agreed to issue 50,000 shares of our common stock to an architectural firm to prepare architectural plans for The Greenhouse.  The firm also received warrants to purchase 150,000 shares of our common stock at an exercise price of $4.40 per share, at any time on or before December 12, 2016.  The shares of common stock were issued in 2015.  We capitalized the cost of the architectural plans as part of Buildings within Property and Equipment on the consolidated balance sheet.</p><br/><p style="margin:0px; page-break-before:always"><b>Employment Agreements</b></p><br/><p style="margin:0px">On May 13, 2015, we hired two individuals from NBC, an unaffiliated entity serving the cannabis industry, to service our new and existing clients. We did not purchase any existing client base from NBC and upon execution of employment agreements, granted these persons a total of 100,000 shares of our common stock with a vesting date of January 1, 2016. We valued the 100,000 shares on the date of grant, based on a closing price per share of our common stock of $3.11 on May 13, 2015, and then reduced by 15% due to restriction on the ability to trade our common stock., resulting in a fair value of $264,350.  One individual forfeited his shares, so expense was only recognized for 50,000 shares.  These shares were issued in April 2016.</p><br/><p style="margin:0px"><b>Consulting Agreement</b></p><br/><p style="margin:0px">On July 15, 2015, we entered into an agreement with an individual to provide consulting services to customers in exchange for 50,000 shares of our common stock to be delivered on March 15, 2016.  The fair value of the common stock was determined at the end of each reporting period and the pro rata amount earned is recognized as accrued stock payable over the term of the agreement.  These shares were issued in March 2016.</p><br/></div>
</cann:AccruedStockPayableTextBlock>
<us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement contextRef="c152_From4Aug2014To4Aug2014_FeinsodAgreementMember"> On August 4, 2014, we entered into an agreement with Michael Feinsod in consideration for serving as Executive Chairman of the Board and as a member of the Board and pursuant to the terms of the Executive Board and Director Agreement (the “Feinsod Agreement”). The Board approved the issuance to Infinity Capital of (a) 200,000 shares of our common stock on August 4, 2014; (b) 1,000,000 shares of our common stock upon the uplisting of our common stock to the OTC Market’s OTCQB; (c) 150,000 shares of our common stock on August 4, 2015; and (d) 150,000 shares of our common stock on August 4, 2016. Mr. Feinsod must remain a member of the Board in order for the common stock to be issued. In addition, the Feinsod Agreement required the issuance of a number of shares of our common stock to Infinity Capital equal to 10% of any new issuances not to exceed 600,000 shares of our common stock in the aggregate during the time that Mr. Feinsod remains a member of the Board (the “New Issuance Allowance”). Under the terms of the Feinsod Agreement, the New Issuance Allowance would not be triggered upon issuances relating to convertible securities existing as of the date of the Feinsod Agreement. For illustrative purposes, if we issue 7,000,000 new shares of common stock, then the New Issuance Allowance issued to Infinity Capital would be capped at 600,000 shares of our common stock. No shares have been issued under the New Issuance Allowance. </us-gaap:RelatedPartyTransactionTermsAndMannerOfSettlement>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c153_From4Aug2014To4Aug2014_FeinsodAgreementMember_IPGMember" decimals="INF"> 200000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c154_From4Aug2014To4Aug2014_FeinsodAgreementMember_IPGMember_UponUplistingToOTCQBMember" decimals="INF"> 1000000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c155_From4Aug2015To4Aug2015_FeinsodAgreementMember_IPGMember" decimals="INF"> 150000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c156_From4Aug2016To4Aug2016_FeinsodAgreementMember_IPGMember" decimals="INF"> 150000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c157_From1Jan2016To31Dec2016_FeinsodAgreementMember_MaximumMember" decimals="INF"> 600000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 unitRef="usdPershares" contextRef="c158_AsOf31Dec2016_FeinsodAgreementMember_UponUplistingToOTCQBMember" decimals="2"> 2.97 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 unitRef="usdPershares" contextRef="c159_AsOf27Apr2015_FeinsodAgreementMember_UponUplistingToOTCQBMember" decimals="2"> 3.49 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<cann:SharePriceDiscount unitRef="pure" contextRef="c159_AsOf27Apr2015_FeinsodAgreementMember_UponUplistingToOTCQBMember" decimals="2"> 0.15 </cann:SharePriceDiscount>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 unitRef="usdPershares" contextRef="c160_AsOf31Dec2016_FeinsodAgreementMember" decimals="2"> 4.42 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 unitRef="usdPershares" contextRef="c161_AsOf4Aug2014_FeinsodAgreementMember" decimals="2"> 5.20 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<cann:SharePriceDiscount unitRef="pure" contextRef="c161_AsOf4Aug2014_FeinsodAgreementMember" decimals="2"> 0.15 </cann:SharePriceDiscount>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c162_From12Dec2014To12Dec2014_ArchitecturalServicesMember" decimals="INF"> 50000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:ClassOfWarrantOrRightOutstanding unitRef="shares" contextRef="c163_AsOf12Dec2014_ArchitecturalServicesMember" decimals="INF"> 150000 </us-gaap:ClassOfWarrantOrRightOutstanding>
<us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1 unitRef="usdPershares" contextRef="c163_AsOf12Dec2014_ArchitecturalServicesMember" decimals="2"> 4.40 </us-gaap:ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1>
<us-gaap:StockIssuedDuringPeriodSharesIssuedForServices unitRef="shares" contextRef="c164_From13May2015To13May2015_EmployeeAgreementsMember" decimals="INF"> 100000 </us-gaap:StockIssuedDuringPeriodSharesIssuedForServices>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c165_AsOf13May2015_EmployeeAgreementsMember" decimals="2"> 3.11 </us-gaap:SharePrice>
<cann:SharePriceDiscount unitRef="pure" contextRef="c165_AsOf13May2015_EmployeeAgreementsMember" decimals="2"> 0.15 </cann:SharePriceDiscount>
<us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross unitRef="usd" contextRef="c166_From13May2015To13May2015_EmployeeAgreementsMember_ScenarioAdjustmentMember" decimals="0"> 264350 </us-gaap:StockIssuedDuringPeriodValueRestrictedStockAwardGross>
<us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures unitRef="shares" contextRef="c164_From13May2015To13May2015_EmployeeAgreementsMember" decimals="INF"> 50000 </us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures>
<us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross unitRef="shares" contextRef="c167_From15Jul2015To15Jul2015_ConsultingAgreementMember" decimals="INF"> 50000 </us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardGross>
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<div style="font-family: Times New Roman; font-size: 10pt; "> The following tables summarize the changes in accrued common stock payable:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 384;"></td><td style="width: 16.667;"></td><td style="width: 87;"></td><td style="width: 18;"></td><td style="width: 90;"></td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Amount</b></p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">524,042</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">350,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Architectural Services - issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(114,693)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(50,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">IPG acquisition – accrued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">1,054,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">500,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">IPG acquisition – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(210,800)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(100,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Chiefton acquisition – accrued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">69,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">80,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement – accrual</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">723,851</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement - issued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(663,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(150,000)</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Employment agreements - accrued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">131,608</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">50,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Consulting services - accrued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">18,012</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">50,000</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2015</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">1,532,420</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">730,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement – accrual</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">192,800</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Feinsod Agreement – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(663,000)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(150,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Consulting services – accrual</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">6,988</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Consulting services – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(25,000)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(50,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Employment agreements – accrual</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">567</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Employment agreements – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(132,175)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(50,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">IPG acquisition – issued</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(843,200)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(400,000)</p> </td></tr> <tr><td style="margin-top:0px; width: 384;" valign="bottom"><p style="margin:0px; padding-left:18px; text-indent:-4.333px">Chiefton acquisition – issued</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;">(69,400)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;">(80,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 384;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31,2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 87;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-top:1px solid #000000; border-bottom:3px double #000000; width: 90;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> </table></div>
</us-gaap:ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock>
<cann:AccruedStockPayableValue unitRef="usd" contextRef="c4_AsOf31Dec2014" decimals="0"> 524042 </cann:AccruedStockPayableValue>
<cann:AccruedStockPayableShares unitRef="shares" contextRef="c4_AsOf31Dec2014" decimals="INF"> 350000 </cann:AccruedStockPayableShares>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c168_From1Jan2015To31Dec2015_ArchitecturalServicesMember" decimals="0"> -114693 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c168_From1Jan2015To31Dec2015_ArchitecturalServicesMember" decimals="INF"> -50000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c169_From1Jan2015To31Dec2015_IPGMember" decimals="0"> 1054000 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<cann:IntangibleAssetsAccruedShares unitRef="shares" contextRef="c169_From1Jan2015To31Dec2015_IPGMember" decimals="INF"> 500000 </cann:IntangibleAssetsAccruedShares>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c169_From1Jan2015To31Dec2015_IPGMember" decimals="0"> -210800 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c169_From1Jan2015To31Dec2015_IPGMember" decimals="INF"> -100000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c170_From1Jan2015To31Dec2015_ChieftonAcquisitionMember" decimals="0"> 69400 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<cann:IntangibleAssetsAccruedShares unitRef="shares" contextRef="c170_From1Jan2015To31Dec2015_ChieftonAcquisitionMember" decimals="INF"> 80000 </cann:IntangibleAssetsAccruedShares>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c171_From1Jan2015To31Dec2015_FeinsodAgreementMember" decimals="0"> 723851 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c171_From1Jan2015To31Dec2015_FeinsodAgreementMember" decimals="0"> -663000 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c171_From1Jan2015To31Dec2015_FeinsodAgreementMember" decimals="INF"> -150000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c172_From1Jan2015To31Dec2015_EmployeeAgreementsMember" decimals="0"> 131608 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<cann:IntangibleAssetsAccruedShares unitRef="shares" contextRef="c172_From1Jan2015To31Dec2015_EmployeeAgreementsMember" decimals="INF"> 50000 </cann:IntangibleAssetsAccruedShares>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c173_From1Jan2015To31Dec2015_ConsultingMember" decimals="0"> 18012 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<cann:IntangibleAssetsAccruedShares unitRef="shares" contextRef="c173_From1Jan2015To31Dec2015_ConsultingMember" decimals="INF"> 50000 </cann:IntangibleAssetsAccruedShares>
<cann:AccruedStockPayableValue unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1532420 </cann:AccruedStockPayableValue>
<cann:AccruedStockPayableShares unitRef="shares" contextRef="c1_AsOf31Dec2015" decimals="INF"> 730000 </cann:AccruedStockPayableShares>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c174_From1Jan2016To31Dec2016_FeinsodAgreementMember" decimals="0"> 192800 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c174_From1Jan2016To31Dec2016_FeinsodAgreementMember" decimals="0"> -663000 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c174_From1Jan2016To31Dec2016_FeinsodAgreementMember" decimals="INF"> -150000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c175_From1Jan2016To31Dec2016_ConsultingMember" decimals="0"> 6988 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c175_From1Jan2016To31Dec2016_ConsultingMember" decimals="0"> -25000 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c175_From1Jan2016To31Dec2016_ConsultingMember" decimals="INF"> -50000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1 unitRef="usd" contextRef="c176_From1Jan2016To31Dec2016_EmployeeAgreementsMember" decimals="0"> 567 </us-gaap:NoncashOrPartNoncashAcquisitionIntangibleAssetsAcquired1>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c176_From1Jan2016To31Dec2016_EmployeeAgreementsMember" decimals="0"> -132175 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c176_From1Jan2016To31Dec2016_EmployeeAgreementsMember" decimals="INF"> -50000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c177_From1Jan2016To31Dec2016_IPGMember" decimals="0"> -843200 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c177_From1Jan2016To31Dec2016_IPGMember" decimals="INF"> -400000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:StockIssuedDuringPeriodValueAcquisitions unitRef="usd" contextRef="c178_From1Jan2016To31Dec2016_ChieftonAcquisitionMember" decimals="0"> -69400 </us-gaap:StockIssuedDuringPeriodValueAcquisitions>
<us-gaap:StockIssuedDuringPeriodSharesAcquisitions unitRef="shares" contextRef="c178_From1Jan2016To31Dec2016_ChieftonAcquisitionMember" decimals="INF"> -80000 </us-gaap:StockIssuedDuringPeriodSharesAcquisitions>
<us-gaap:DerivativesAndFairValueTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 8.   DERIVATIVE WARRANT LIABILITY</b></p><br/><p style="margin:0px"><b>12% Warrants</b></p><br/><p style="margin:0px">On September 21, 2016, in connection with the 12% Notes, we issued the 12% Warrants, which are treated as a derivative liability and adjusted to fair value at the end of each period.  The underlying assumptions used in the binomial model to determine the fair value of the derivative warrant liability were:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 367.333;"></td><td style="width: 16.667;"></td><td style="width: 96;"></td><td style="width: 17.867;"></td><td style="width: 91.2;"></td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>September 21, 2016</b></p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>December 31, 2016</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Current stock price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.20</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">3.20</p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">0.92 %</p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">1.50 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected dividend yield</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected term (in years)</p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3.0</p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">2.7</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">146 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">153 %</p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Number of iterations</p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">5</p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">5</p> </td></tr> </table><br/><p style="margin:0px">The initial fair value of the derivative warrant liability was recorded as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 478.667;"></td><td style="width: 19.2;"></td><td style="width: 90;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Extinguishment of debt</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="top"><p style="margin:0px; text-align: right;">1,715,000</p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Interest expense</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="top"><p style="margin:0px; text-align: right;">5,189,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Debt discount</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">2,450,000</p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Initial fair value of warrants issued</p> </td><td style="margin-top:0px; width: 19.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">9,354,000</p> </td></tr> </table><br/><p style="margin:0px">Changes in the derivative warrant liability were as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 478.667;"></td><td style="width: 19.333;"></td><td style="width: 90;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">January 1, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.333;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="top"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Initial fair value of warrants issued</p> </td><td style="margin-top:0px; width: 19.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="top"><p style="margin:0px; text-align: right;">9,354,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Increase in fair value</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="top"><p style="margin:0px; text-align: right;">17,284,000</p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Reclassification to additional paid-in capital upon exercise of warrants</p> </td><td style="margin-top:0px; width: 19.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">(3,518,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.333;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">23,120,000</p> </td></tr> </table><br/><p style="margin:0px"><b>Series C Warrants – Full Circle</b></p><br/><p style="margin:0px">On January 21, 2014, in connection with a Securities Purchase Agreement (the “SPA”) we entered into with Full Circle Capital Corporation (“Full Circle”), for $500,000 we issued to Full Circle, fully-vested warrants (“Series C Warrants”), which allow Full Circle to purchase up to 1,000,000 shares of our common stock at any time on or prior to January 21, 2017 at a price of $5.50 per share. As part of the $500,000 proceeds from the issuance of the Series C Warrants, $100,000 was retained by Full Circle to cover legal and deal related expenses of future financing transactions, which was recorded as deferred financing costs.  On September 24, 2014, we and Full Circle entered into Amendment No. 1 to the SPA, which changed the exercise price of the warrants issuable to $4.00 per share of our common stock, and increased the amount of warrants issuable to 1,400,000. </p><br/><p style="margin:0px">The Series C Warrants had non-standard anti-dilution protection provisions and, under certain conditions, granted the right to the holder to require us to adjust the warrant’s exercise price to a lower price. Accordingly, these warrants were accounted for as derivative liabilities.  We used the binomial pricing model with assumptions that included the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the warrants considered to be derivative instruments.</p><br/><p style="margin:0px; page-break-before:always">On January 21, 2015, Full Circle executed a cashless exercise of 1,215,000 warrants in exchange for 660,263 common shares of our common stock.  On May 1, 2015, we and Full Circle entered into Amendment No. 2 to the Series C Warrants, pursuant to which Full Circle executed a cashless exercised of 160,000 warrants and received 100,000 shares of our common stock. On May 4, 2015, Full Circle exercised its remaining warrants under the Series C Warrants for $100,000 and purchased 25,000 shares of our common stock for $4.00 per share.  Following these transactions, there are no more Series C Warrants outstanding.</p><br/><p style="margin:0px">The underlying assumptions used in the binomial model to determine the fair value of the derivative warrant liability were:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 365.867;"></td><td style="width: 16.8;"></td><td style="width: 96;"></td><td style="width: 19.2;"></td><td style="width: 91.2;"></td><td style="width: 16.8;"></td><td style="width: 88.8;"></td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-6.733px; padding-right:-6.467px; text-align: center;"><b>May 1, 2015</b></p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="bottom"><p style="margin:0px; padding-left:-6.733px; padding-right:-6.467px; text-align: center;"><b>May 4, 2015</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 88.8;" valign="top"><p style="margin:0px; padding-left:-6.733px; padding-right:-6.467px; text-align: center;"><b>December 31, 2014</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Current stock price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3.75</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">3.50</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">5.02</p> </td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">0.60 %</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">0.60 %</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">0.60 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected dividend yield</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected term (in years)</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.8</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">1.8</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">3.0</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">133 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">133 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">129 %</p> </td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Early exercise factor</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.33</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">1.33</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">1.33</p> </td></tr> </table><br/><p style="margin:0px">Changes in the derivative warrant liability and cumulative expense were as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 367.333;"></td><td style="width: 16.667;"></td><td style="width: 96;"></td><td style="width: 17.867;"></td><td style="width: 91.2;"></td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>Liability</b></p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>Cumulative Expense (Gain)</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">3,893,904</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">3,393,904</p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:16.333px; text-indent:-6px">Increase in the fair value of warrant liability</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">14,010</p> </td><td style="margin-top:0px; width: 17.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">14,010</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:16.333px; text-indent:-6px">Reclassification to additional paid-in capital upon exercise of warrants</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(3,683,270)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:16.333px; text-indent:-6px">Gain on settlement of derivative</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(224,644)</p> </td><td style="margin-top:0px; width: 17.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">(224,644)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px">December 31, 2015</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">3,183,270</p> </td></tr> </table><br/></div>
</us-gaap:DerivativesAndFairValueTextBlock>
<cann:FullyvestedWarrants unitRef="usd" contextRef="c179_From21Jan2014To21Jan2014_SeriesCWarrantsMember_FullCircleMember" decimals="0"> 500000 </cann:FullyvestedWarrants>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c179_From21Jan2014To21Jan2014_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 1000000 </cann:WarrantsToPurchase>
<invest:InvestmentWarrantsExercisePrice unitRef="usdPershares" contextRef="c179_From21Jan2014To21Jan2014_SeriesCWarrantsMember_FullCircleMember" decimals="2"> 5.50 </invest:InvestmentWarrantsExercisePrice>
<us-gaap:ProceedsFromIssuanceOfDebt unitRef="usd" contextRef="c179_From21Jan2014To21Jan2014_SeriesCWarrantsMember_FullCircleMember" decimals="0"> 500000 </us-gaap:ProceedsFromIssuanceOfDebt>
<us-gaap:ProceedsFromIssuanceOfDebt unitRef="usd" contextRef="c180_From21Jan2014To21Jan2014_SeriesCWarrantsMember_FullCircleMember_Z8111" decimals="0"> 100000 </us-gaap:ProceedsFromIssuanceOfDebt>
<invest:InvestmentWarrantsExercisePrice unitRef="usdPershares" contextRef="c181_From24Sep2014To24Sep2014_SeriesCWarrantsMember_FullCircleMember" decimals="2"> 4.00 </invest:InvestmentWarrantsExercisePrice>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c181_From24Sep2014To24Sep2014_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 1400000 </cann:WarrantsToPurchase>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised unitRef="shares" contextRef="c182_From21Jan2015To21Jan2015_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 1215000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised>
<us-gaap:CommonStockSharesIssued unitRef="shares" contextRef="c183_AsOf21Jan2015_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 660263 </us-gaap:CommonStockSharesIssued>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised unitRef="shares" contextRef="c184_From1May2015To1May2015_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 160000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised>
<us-gaap:CommonStockSharesIssued unitRef="shares" contextRef="c185_AsOf1May2015_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 100000 </us-gaap:CommonStockSharesIssued>
<us-gaap:ProceedsFromWarrantExercises unitRef="usd" contextRef="c186_From4May2015To4May2015_SeriesCWarrantsMember_FullCircleMember" decimals="0"> 100000 </us-gaap:ProceedsFromWarrantExercises>
<us-gaap:CommonStockSharesIssued unitRef="shares" contextRef="c187_AsOf4May2015_SeriesCWarrantsMember_FullCircleMember" decimals="INF"> 25000 </us-gaap:CommonStockSharesIssued>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c187_AsOf4May2015_SeriesCWarrantsMember_FullCircleMember" decimals="2"> 4.00 </us-gaap:SharePrice>
<us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> The underlying assumptions used in the binomial model to determine the fair value of the derivative warrant liability were:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 367.333;"></td><td style="width: 16.667;"></td><td style="width: 96;"></td><td style="width: 17.867;"></td><td style="width: 91.2;"></td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>September 21, 2016</b></p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>December 31, 2016</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Current stock price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.20</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">3.20</p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">0.92 %</p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">1.50 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected dividend yield</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected term (in years)</p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3.0</p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">2.7</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">146 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">153 %</p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Number of iterations</p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">5</p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">5</p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 365.867;"></td><td style="width: 16.8;"></td><td style="width: 96;"></td><td style="width: 19.2;"></td><td style="width: 91.2;"></td><td style="width: 16.8;"></td><td style="width: 88.8;"></td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-6.733px; padding-right:-6.467px; text-align: center;"><b>May 1, 2015</b></p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="bottom"><p style="margin:0px; padding-left:-6.733px; padding-right:-6.467px; text-align: center;"><b>May 4, 2015</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 88.8;" valign="top"><p style="margin:0px; padding-left:-6.733px; padding-right:-6.467px; text-align: center;"><b>December 31, 2014</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Current stock price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3.75</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">3.50</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">5.02</p> </td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">0.60 %</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">0.60 %</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">0.60 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected dividend yield</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected term (in years)</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.8</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">1.8</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">3.0</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">133 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">133 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">129 %</p> </td></tr> <tr><td style="margin-top:0px; width: 365.867;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Early exercise factor</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.33</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: center;">1.33</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 88.8;" valign="top"><p style="margin:0px; text-align: center;">1.33</p> </td></tr> </table></div>
</us-gaap:ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c188_AsOf21Sep2016" decimals="2"> 1.20 </us-gaap:SharePrice>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c0_AsOf31Dec2016" decimals="2"> 3.20 </us-gaap:SharePrice>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c189_From21Sep2016To21Sep2016" decimals="4"> 0.0092 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c190_From31Dec2016To31Dec2016" decimals="4"> 0.0150 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsExpectedTerm contextRef="c189_From21Sep2016To21Sep2016"> P3Y </us-gaap:FairValueAssumptionsExpectedTerm>
<us-gaap:FairValueAssumptionsExpectedTerm contextRef="c190_From31Dec2016To31Dec2016"> P2Y255D </us-gaap:FairValueAssumptionsExpectedTerm>
<us-gaap:FairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c189_From21Sep2016To21Sep2016" decimals="2"> 1.46 </us-gaap:FairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c190_From31Dec2016To31Dec2016" decimals="2"> 1.53 </us-gaap:FairValueAssumptionsExpectedVolatilityRate>
<cann:FairValueAssumptionsNumberOfIterations unitRef="pure" contextRef="c189_From21Sep2016To21Sep2016" decimals="0"> 5 </cann:FairValueAssumptionsNumberOfIterations>
<cann:FairValueAssumptionsNumberOfIterations unitRef="pure" contextRef="c190_From31Dec2016To31Dec2016" decimals="0"> 5 </cann:FairValueAssumptionsNumberOfIterations>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c191_AsOf1May2015" decimals="2"> 3.75 </us-gaap:SharePrice>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c192_AsOf4May2015" decimals="2"> 3.50 </us-gaap:SharePrice>
<us-gaap:SharePrice unitRef="usdPershares" contextRef="c4_AsOf31Dec2014" decimals="2"> 5.02 </us-gaap:SharePrice>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c193_From1May2015To1May2015" decimals="4"> 0.0060 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c194_From4May2015To4May2015" decimals="4"> 0.0060 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c195_From31Dec2014To31Dec2014" decimals="4"> 0.0060 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsExpectedTerm contextRef="c193_From1May2015To1May2015"> P1Y292D </us-gaap:FairValueAssumptionsExpectedTerm>
<us-gaap:FairValueAssumptionsExpectedTerm contextRef="c194_From4May2015To4May2015"> P1Y292D </us-gaap:FairValueAssumptionsExpectedTerm>
<us-gaap:FairValueAssumptionsExpectedTerm contextRef="c195_From31Dec2014To31Dec2014"> P3Y </us-gaap:FairValueAssumptionsExpectedTerm>
<us-gaap:FairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c193_From1May2015To1May2015" decimals="2"> 1.33 </us-gaap:FairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c194_From4May2015To4May2015" decimals="2"> 1.33 </us-gaap:FairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c195_From31Dec2014To31Dec2014" decimals="2"> 1.29 </us-gaap:FairValueAssumptionsExpectedVolatilityRate>
<cann:EarlyExerciseFactor unitRef="pure" contextRef="c193_From1May2015To1May2015" decimals="2"> 1.33 </cann:EarlyExerciseFactor>
<cann:EarlyExerciseFactor unitRef="pure" contextRef="c194_From4May2015To4May2015" decimals="2"> 1.33 </cann:EarlyExerciseFactor>
<cann:EarlyExerciseFactor unitRef="pure" contextRef="c195_From31Dec2014To31Dec2014" decimals="2"> 1.33 </cann:EarlyExerciseFactor>
<us-gaap:ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> The initial fair value of the derivative warrant liability was recorded as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 478.667;"></td><td style="width: 19.2;"></td><td style="width: 90;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Extinguishment of debt</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="top"><p style="margin:0px; text-align: right;">1,715,000</p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Interest expense</p> </td><td style="margin-top:0px; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="top"><p style="margin:0px; text-align: right;">5,189,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Debt discount</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">2,450,000</p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Initial fair value of warrants issued</p> </td><td style="margin-top:0px; width: 19.2;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">9,354,000</p> </td></tr> </table></div>
</us-gaap:ScheduleOfDerivativeLiabilitiesAtFairValueTableTextBlock>
<us-gaap:GainsLossesOnExtinguishmentOfDebt unitRef="usd" contextRef="c196_From1Jan2016To31Dec2016_DerivativeWarrantLiabilityMember" decimals="0"> 1715000 </us-gaap:GainsLossesOnExtinguishmentOfDebt>
<cann:InitialFairValueOfDerivativeWarrantLiabilityIncludedAsInterestExpense unitRef="usd" contextRef="c196_From1Jan2016To31Dec2016_DerivativeWarrantLiabilityMember" decimals="0"> 5189000 </cann:InitialFairValueOfDerivativeWarrantLiabilityIncludedAsInterestExpense>
<us-gaap:DebtInstrumentUnamortizedDiscount unitRef="usd" contextRef="c197_AsOf31Dec2016_DerivativeWarrantLiabilityMember" decimals="0"> 2450000 </us-gaap:DebtInstrumentUnamortizedDiscount>
<cann:WarrantsFairValue unitRef="usd" contextRef="c196_From1Jan2016To31Dec2016_DerivativeWarrantLiabilityMember" decimals="0"> 9354000 </cann:WarrantsFairValue>
<us-gaap:ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock contextRef="c198_From1Jan2016To31Dec2016_TwelvePercentWarrantsMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> Changes in the derivative warrant liability were as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 478.667;"></td><td style="width: 19.333;"></td><td style="width: 90;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">January 1, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.333;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="top"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Initial fair value of warrants issued</p> </td><td style="margin-top:0px; width: 19.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 90;" valign="top"><p style="margin:0px; text-align: right;">9,354,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Increase in fair value</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 90;" valign="top"><p style="margin:0px; text-align: right;">17,284,000</p> </td></tr> <tr><td style="margin-top:0px; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">  Reclassification to additional paid-in capital upon exercise of warrants</p> </td><td style="margin-top:0px; width: 19.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">(3,518,000)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 478.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 19.333;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 90;" valign="top"><p style="margin:0px; text-align: right;">23,120,000</p> </td></tr> </table></div>
</us-gaap:ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock>
<us-gaap:DerivativeFairValueOfDerivativeNet unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 9354000 </us-gaap:DerivativeFairValueOfDerivativeNet>
<us-gaap:IncreaseDecreaseInDerivativeAssetsAndLiabilities unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 17284000 </us-gaap:IncreaseDecreaseInDerivativeAssetsAndLiabilities>
<us-gaap:AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> -3518000 </us-gaap:AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation>
<us-gaap:DerivativeLiabilities unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 23120000 </us-gaap:DerivativeLiabilities>
<us-gaap:ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock contextRef="c199_From1Jan2016To31Dec2016_SeriesCWarrantsMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> Changes in the derivative warrant liability and cumulative expense were as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 367.333;"></td><td style="width: 16.667;"></td><td style="width: 96;"></td><td style="width: 17.867;"></td><td style="width: 91.2;"></td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>Liability</b></p> </td><td style="margin-top:0px; width: 17.867;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.467px; text-align: center;"><b>Cumulative Expense (Gain)</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">3,893,904</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">3,393,904</p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:16.333px; text-indent:-6px">Increase in the fair value of warrant liability</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: right;">14,010</p> </td><td style="margin-top:0px; width: 17.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">14,010</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:16.333px; text-indent:-6px">Reclassification to additional paid-in capital upon exercise of warrants</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(3,683,270)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 367.333;" valign="bottom"><p style="margin:0px; padding-left:16.333px; text-indent:-6px">Gain on settlement of derivative</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;">(224,644)</p> </td><td style="margin-top:0px; width: 17.867;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">(224,644)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 367.333;" valign="bottom"><p style="margin:0px">December 31, 2015</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 96;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.867;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 91.2;" valign="top"><p style="margin:0px; text-align: right;">3,183,270</p> </td></tr> </table></div>
</us-gaap:ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock>
<us-gaap:DerivativeLiabilities unitRef="usd" contextRef="c200_AsOf31Dec2014_DerivativeWarrantLiabilityMember" decimals="0"> 3893904 </us-gaap:DerivativeLiabilities>
<us-gaap:DerivativeLiabilities unitRef="usd" contextRef="c201_AsOf31Dec2014_CumulativeExpenseMember" decimals="0"> 3393904 </us-gaap:DerivativeLiabilities>
<us-gaap:IncreaseDecreaseInDerivativeLiabilities unitRef="usd" contextRef="c202_From1Jan2015To31Dec2015_DerivativeWarrantLiabilityMember" decimals="0"> 14010 </us-gaap:IncreaseDecreaseInDerivativeLiabilities>
<us-gaap:IncreaseDecreaseInDerivativeLiabilities unitRef="usd" contextRef="c203_From1Jan2015To31Dec2015_CumulativeExpenseMember" decimals="0"> 14010 </us-gaap:IncreaseDecreaseInDerivativeLiabilities>
<us-gaap:AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation unitRef="usd" contextRef="c202_From1Jan2015To31Dec2015_DerivativeWarrantLiabilityMember" decimals="0"> -3683270 </us-gaap:AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation>
<cann:GainOnSettlementOfDerivative unitRef="usd" contextRef="c202_From1Jan2015To31Dec2015_DerivativeWarrantLiabilityMember" decimals="0"> -224644 </cann:GainOnSettlementOfDerivative>
<cann:GainOnSettlementOfDerivative unitRef="usd" contextRef="c203_From1Jan2015To31Dec2015_CumulativeExpenseMember" decimals="0"> -224644 </cann:GainOnSettlementOfDerivative>
<us-gaap:DerivativeLiabilities unitRef="usd" contextRef="c204_AsOf31Dec2015_CumulativeExpenseMember" decimals="0"> 3183270 </us-gaap:DerivativeLiabilities>
<us-gaap:CommitmentsAndContingenciesDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 9.   COMMITMENTS AND CONTINGENCIES</b></p><br/><p style="margin:0px"><b>Operating Leases</b></p><br/><p style="margin:0px">We entered into a three-year agreement effective April 21, 2014, for a 1,800 square foot warehouse supply and distribution facility, through April 30, 2017. We do not intend to renew this lease.</p><br/><p style="margin:0px">Lease expense was approximately $9,900 and $9,600, respectively, for the years ended December 31, 2016 and 2015.  The future obligations under the warehouse lease are approximately $3,400 for 2017.</p><br/><p style="margin:0px"><b>DB Option Agreement</b></p><br/><p style="margin:0px">On November 4, 2015, we entered into an agreement (the “DB Option Agreement”) with Infinity Capital, a related party, which was amended on March 29, 2016 (the “Amended DB Option Agreement”) and on September 16, 2016 (the “Second Amended DB Option Agreement”).  Pursuant to the Amended DB Option Agreement, we have the right to purchase all of Infinity Capital’s interest in DB Arizona at Infinity Capital’s actual cost, plus $1.00, or $915,001. The interests for which the option has been granted are Infinity Capital’s 50% equity interest in the membership interests of DB Arizona, and any outstanding unpaid principal and interest owed on promissory note(s) issued by DB Arizona in favor of Infinity Capital for up to $915,000.  DB Arizona is involved in the production and distribution of Dixie Brands, Inc.’s full line of medical cannabis “Dixie Elixirs and Edibles” products in Arizona.  DB Arizona began sales in 2016.  We have no obligation to exercise the option, which expires September 30, 2018.</p><br/><p style="margin:0px"><b>Legal</b></p><br/><p style="margin:0px">To the best of our knowledge and belief, no material legal proceedings of merit are currently pending or threatened.</p><br/></div>
</us-gaap:CommitmentsAndContingenciesDisclosureTextBlock>
<us-gaap:AreaOfRealEstateProperty unitRef="sqft" contextRef="c205_AsOf31Dec2016_WarehouseSupplyAndDistributionFacilityMember" decimals="0"> 1800 </us-gaap:AreaOfRealEstateProperty>
<us-gaap:LeaseAndRentalExpense unitRef="usd" contextRef="c206_From1Jan2016To31Dec2016_WarehouseSupplyAndDistributionFacilityMember" decimals="0"> 9900 </us-gaap:LeaseAndRentalExpense>
<us-gaap:LeaseAndRentalExpense unitRef="usd" contextRef="c207_From1Jan2015To31Dec2015_WarehouseSupplyAndDistributionFacilityMember" decimals="0"> 9600 </us-gaap:LeaseAndRentalExpense>
<us-gaap:OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear unitRef="usd" contextRef="c205_AsOf31Dec2016_WarehouseSupplyAndDistributionFacilityMember" decimals="0"> 3400 </us-gaap:OperatingLeasesFutureMinimumPaymentsRemainderOfFiscalYear>
<cann:RightToPurchaseCost unitRef="usd" contextRef="c208_From16Sep2016To16Sep2016_DBOptionAgreementMember" decimals="0"> 915001 </cann:RightToPurchaseCost>
<cann:EquityInterest unitRef="pure" contextRef="c209_AsOf16Sep2016_DBOptionAgreementMember" decimals="2"> 0.50 </cann:EquityInterest>
<us-gaap:Capital unitRef="usd" contextRef="c209_AsOf16Sep2016_DBOptionAgreementMember" decimals="0"> 915000 </us-gaap:Capital>
<us-gaap:DeferredRevenueDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px; page-break-before:always"><b>NOTE 10.  DEFERRED TAXES</b></p><br/><p style="margin:0px">The components of net deferred tax assets (liabilities) are as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 87.267;"></td><td style="width: 16.667;"></td><td style="width: 80.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87.267;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 80.4;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Long-lived assets</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">504,721</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(117,808)</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Equity-based instruments</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">5,043,533</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">3,594,015</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Net operating loss carryforwards</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">2,761,830</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">1,999,309</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Deferred tax asset valuation allowance</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">(8,310,084)</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(5,475,516)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> </table><br/><p style="margin:0px">A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 87.267;"></td><td style="width: 16.667;"></td><td style="width: 80.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87.267;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 80.4;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Income tax benefit at statutory rate</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">(11,151,890)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(2,987,334)</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">State income tax benefit, net of Federal benefit</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">(1,518,625)</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(406,805)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Amortization of debt discount</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">313,871</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">655,669</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Loss (gain) on derivative</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">8,681,320</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(81,368)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Loss on extinguishment of debt</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">838,379</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Other</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">2,377</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">1,440</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Valuation allowance</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">2,834,568</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">2,818,398</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> </table><br/></div>
</us-gaap:DeferredRevenueDisclosureTextBlock>
<us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> The components of net deferred tax assets (liabilities) are as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 87.267;"></td><td style="width: 16.667;"></td><td style="width: 80.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87.267;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 80.4;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Long-lived assets</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">504,721</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(117,808)</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Equity-based instruments</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">5,043,533</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">3,594,015</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Net operating loss carryforwards</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">2,761,830</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">1,999,309</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Deferred tax asset valuation allowance</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">(8,310,084)</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(5,475,516)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> </table></div>
</us-gaap:ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock>
<us-gaap:AssetsNoncurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 504721 </us-gaap:AssetsNoncurrent>
<us-gaap:AssetsNoncurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> -117808 </us-gaap:AssetsNoncurrent>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueNonvested unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 5043533 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueNonvested>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueNonvested unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 3594015 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueNonvested>
<us-gaap:OperatingLossCarryforwards unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> 2761830 </us-gaap:OperatingLossCarryforwards>
<us-gaap:OperatingLossCarryforwards unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 1999309 </us-gaap:OperatingLossCarryforwards>
<us-gaap:DeferredTaxAssetsValuationAllowanceCurrent unitRef="usd" contextRef="c0_AsOf31Dec2016" decimals="0"> -8310084 </us-gaap:DeferredTaxAssetsValuationAllowanceCurrent>
<us-gaap:DeferredTaxAssetsValuationAllowanceCurrent unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> -5475516 </us-gaap:DeferredTaxAssetsValuationAllowanceCurrent>
<us-gaap:DeferredTaxAssetsNet unitRef="usd" contextRef="c0_AsOf31Dec2016" xs:nil="true"/>
<us-gaap:DeferredTaxAssetsNet unitRef="usd" contextRef="c1_AsOf31Dec2015" xs:nil="true"/>
<us-gaap:ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> A reconciliation of our income tax provision and the amounts computed by applying statutory rates to income before income taxes is as follows:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 87.267;"></td><td style="width: 16.667;"></td><td style="width: 80.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 87.267;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 80.4;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Income tax benefit at statutory rate</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">(11,151,890)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(2,987,334)</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">State income tax benefit, net of Federal benefit</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">(1,518,625)</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(406,805)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Amortization of debt discount</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">313,871</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">655,669</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Loss (gain) on derivative</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">8,681,320</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">(81,368)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Loss on extinguishment of debt</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">838,379</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Other</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">2,377</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">1,440</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Valuation allowance</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;">2,834,568</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;">2,818,398</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 87.267;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 80.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> </table></div>
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<us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> -11151890 </us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate>
<us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> -2987334 </us-gaap:IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate>
<us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> -1518625 </us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes>
<us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> -406805 </us-gaap:IncomeTaxReconciliationStateAndLocalIncomeTaxes>
<us-gaap:InterestExpenseDebtExcludingAmortization unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 313871 </us-gaap:InterestExpenseDebtExcludingAmortization>
<us-gaap:InterestExpenseDebtExcludingAmortization unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 655669 </us-gaap:InterestExpenseDebtExcludingAmortization>
<us-gaap:DerivativeGainOnDerivative unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 8681320 </us-gaap:DerivativeGainOnDerivative>
<us-gaap:DerivativeGainOnDerivative unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> -81368 </us-gaap:DerivativeGainOnDerivative>
<us-gaap:ExtinguishmentOfDebtGainLossNetOfTax unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 838379 </us-gaap:ExtinguishmentOfDebtGainLossNetOfTax>
<us-gaap:OtherTaxExpenseBenefit unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 2377 </us-gaap:OtherTaxExpenseBenefit>
<us-gaap:OtherTaxExpenseBenefit unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 1440 </us-gaap:OtherTaxExpenseBenefit>
<us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 2834568 </us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount>
<us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 2818398 </us-gaap:ValuationAllowanceDeferredTaxAssetChangeInAmount>
<us-gaap:IncomeTaxesPaidNet unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" xs:nil="true"/>
<us-gaap:IncomeTaxesPaidNet unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" xs:nil="true"/>
<us-gaap:StockholdersEquityNoteDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 11.   STOCKHOLDERS’ EQUITY</b></p><br/><p style="margin:0px">Share-based compensation expense consisted of the following:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Employee stock options</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">3,346,692</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">1,500,783</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Consulting services warrants</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">150,165</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">77,918</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">DB Option Agreement warrants</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">55,100</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Stock awards (see Note 7)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">200,355</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">3,839,971</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">3,752,312</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">5,418,672</p> </td></tr> </table><br/><p style="margin:0px"><b>Employee Stock Options</b></p><br/><p style="margin:0px">On October 29, 2014, the Board authorized the adoption of and on June 26, 2015, our stockholders ratified our 2014 Equity Incentive Plan (the “Incentive Plan”).  The Incentive Plan provides for the issuance of up to 10 million shares of our common stock, and is designed to provide an additional incentive to executives, employees, directors and key consultants, aligning our long term interests with participants.  In April 2016, we filed a Registration Statement on Form S-8 (the “Registration Statement”), which automatically became effective in May 2016.  The Registration Statement relates to 10,000,000 shares of our common stock, which are issuable pursuant to, or upon exercise of, options that have been granted or may be granted under our Incentive Plan.</p><br/><p style="margin:0px">Share-based compensation costs for award grants to employees and directors (“Employee Awards”) are recognized on a straight-line basis over the service period for the entire award, with the amount of compensation cost recognized at any date equaling at least the portion of the award that is vested.  The following summarizes the Black-Scholes assumptions used for Employee Awards:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Exercise price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: center;">0.61 – 3.20</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;">0.60 – 3.75</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Stock price on date of grant</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: center;">0.63 – 3.20</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;">0.55 – 3.75</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: center;">146 – 153 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.933px; text-align: center;">151 – 169 %</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: center;">0.7 – 1.9 %</p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: center;">0.9 – 2.5 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: center;">3.0 – 5.0</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: center;">3.0 – 10.0</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><br/><p style="margin:0px; page-break-before:always">We use an estimated forfeiture rate of 67% and 25%, respectively, for our hourly employees, who were granted 80,500 and 282,000 options, respectively, during the years ended December 31, 2016 and 2015.  We assume options granted to salaried employees will all vest.</p><br/><p style="margin:0px">The following summarizes Employee Awards activity:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 269.267;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 16.8;"></td><td style="width: 93.133;"></td><td style="width: 16.667;"></td><td style="width: 86.4;"></td><td style="width: 16.8;"></td><td style="width: 76.933;"></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Exercise Price per Share</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Remaining Contractual Term </b></p> <p style="margin:0px; text-align: center;"><b>(in years)</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Aggregate Intrinsic Value</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">2,662,000</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.54</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">(153,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">2.39</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2015</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">2,509,000</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.49</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">6,826,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">0.87</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Exercised</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">(153,000)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.00</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">(363,600)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">0.97</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2016</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:3px double #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">8,818,400</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.04</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;">2.6</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: right;">19,191,000</p> </td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Exercisable at December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,985,500</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.50</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;">2.1</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: right;">3,480,675</p> </td></tr> </table><br/><p style="margin:0px">Based on our estimated forfeiture rates, we expect 8,765,045 Employee Awards will vest.  As of December 31, 2016, there was approximately $2,779,686 of total unrecognized compensation expense related to unvested Employee Awards, which is expected to be recognized over a weighted-average period of 0.5 years.</p><br/><p style="margin:0px"><b>Warrants for Consulting Services</b></p><br/><p style="margin:0px">As needed, we may issue warrants to third parties in exchange for consulting services.  Stock-based compensation costs for award grants to third parties for consulting services (“Consulting Awards”) are recognized on a straight-line basis over the service period for the entire award, with the amount of compensation cost recognized at any date equaling at least the portion of the award that is vested.  Service Awards are revalued at each reporting date until fully vested, which may generate an expense or benefit.</p><br/><p style="margin:0px">On July 1, 2016, for consulting services we granted fully-vested warrants to four individuals to purchase a total of 35,000 shares of our common stock at an exercise price of $0.90 per share, with a term of five years.</p><br/><p style="margin:0px">On September 21, 2016, we granted fully-vested warrants to one individual to purchase 20,000 shares of our common stock at an exercise price of $1.20 per share, with a term of five years.</p><br/><p style="margin:0px">On April 24, 2015, we entered into a one-year contract with an individual to provide consulting services to raise capital.  We granted to this individual warrants to purchase 20,000 shares of our common stock at an exercise price of $3.75 per share, with a one year vesting period and a term of two years.</p><br/><p style="margin:0px">On April 27, 2015, we entered into a one-year contract with a company to provide investor relations services.  We granted to this company warrants to purchase 20,000 shares of our common stock at an exercise price of $3.49 per share, with a one year vesting period and a term of two years.</p><br/><p style="margin:0px">On June 26, 2015, we granted an individual who provides management consulting services fully-vested warrants to purchase 25,000 shares of our common stock at an exercise price of $2.10 per share with a term of three years.  On August 31, 2015, we granted this individual fully-vested warrants to purchase 5,000 shares of our common stock at an exercise price of $1.03 per share, with a term of three years.  On December 18, 2015, we granted this individual warrants to purchase 7,500 shares our common stock at an exercise price of $0.60 per share, with a one year vesting period and a term of three years.</p><br/><p style="margin:0px">On June 26, 2015, we granted an individual serving as our chief financial officer fully-vested warrants to purchase 25,000 shares of our common stock at an exercise price of $2.10 per share, with a term of three years.</p><br/><p style="margin:0px">On July 1, 2015, we entered into a one-year contract with an individual to provide management consulting services.  We granted warrants to purchase 25,000 shares of our common stock at an exercise price of $1.88 per share, with a one year vesting period and a term of three years.</p><br/><p style="margin:0px; page-break-before:always">The fair value of each warrant grant is estimated using Black-Scholes.  We use historical data to estimate the expected price volatility.  The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of valuation for the estimated life of the option.  The following summarizes the Black-Scholes assumptions used for Consulting Awards granted:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.067;"></td><td style="width: 16.8;"></td><td style="width: 85.8;"></td><td style="width: 17.4;"></td><td style="width: 83.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 186.6;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="top"><p style="margin:0px">Exercise price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;">0.60 – 1.20</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">0.60 – 3.75</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Stock price, date of valuation</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">1.91 – 2.33</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">0.52 – 0.89</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="top"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">146 – 163 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">150 – 157 %</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">0.8 – 1.3 %</p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">1.1 – 1.3 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">2.0 – 4.8</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">2.0 – 3.0</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;"></p> </td></tr> </table><br/><p style="margin:0px">The following summarizes Consulting Awards activity:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 269.267;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 16.8;"></td><td style="width: 93.133;"></td><td style="width: 16.667;"></td><td style="width: 86.4;"></td><td style="width: 16.8;"></td><td style="width: 76.933;"></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Exercise Price per Share</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Remaining Contractual Term </b></p> <p style="margin:0px; text-align: center;"><b>(in years)</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Aggregate Intrinsic Value</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">150,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.40</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">127,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">2.40</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(25,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">2.10</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2015</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">252,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">3.62</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">55,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.01</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(150,000)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.40</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">157,500</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.96</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.0</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">211,350</p> </td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Exercisable at December 31, 2016</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">157,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.96</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.0</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">211,350</p> </td></tr> </table><br/><p style="margin:0px"><b>DB Option Agreement warrants</b></p><br/><p style="margin:0px">In order to extend the DB Option Agreement with Infinity Capital, in March 2016 we granted Infinity Capital warrants to purchase 100,000 shares of our common stock at an exercise price of $0.67 per share with a five year life.  The fair value of $55,100 is included in share-based compensation expense.  The following summarizes the Black-Scholes assumptions used to estimate the fair value of the DB Option Agreement warrants:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 432;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 432;" valign="top"><p style="margin:0px">Stock price on date of grant</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">$ 0.61</p> </td></tr> <tr><td style="margin-top:0px; width: 432;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">150 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 432;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.2 %</p> </td></tr> <tr><td style="margin-top:0px; width: 432;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">5.0</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 432;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><br/><p style="margin:0px"><b>IPG Acquisition Warrants</b></p><br/><p style="margin:0px">In connection with the IPG APA, we issued to IPG 500,000 fully-vested warrants to purchase a) 250,000 shares of our common stock at $4.50 per share, (the “IPG $4.50 Warrants”), and b) 250,000 shares of our common stock at $5.00 per share (the “IPG $5.00 Warrants”) (collectively, the “IPG Warrants”). The IPG Warrants are subject to customary adjustments in the event of our reclassification, consolidation, merger, subdivision of shares of our common stock, combination of shares of our common stock or payment of dividends in the form of the our common stock. The IPG Warrants expire three years after their initial issuance date.  On the date of grant, the IPG $4.50 Warrants and the IPG $5.00 Warrants had fair values of approximately $421,000 and $412,000, respectively, based on the Black-Scholes.</p><br/><p style="margin:0px">The following summarizes the Black-Scholes assumptions used for IPG Warrants:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">134 %</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.0 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3.0</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><br/><p style="margin:0px; page-break-before:always"><b>Warrants with Debt</b></p><br/><p style="margin:0px">The fair value of each warrant grant is estimated using Black-Scholes, except for the 12% Warrants (see Note 8).  We use historical data to estimate the expected price volatility.  The risk-free interest rate is based on the United States Treasury yield curve in effect at the time of grant for the estimated life of the warrant.  The following summarizes the Black-Scholes assumptions used for warrants granted for debt:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.067;"></td><td style="width: 16.8;"></td><td style="width: 85.8;"></td><td style="width: 17.4;"></td><td style="width: 83.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 186.6;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;">148 – 158 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;">125 – 132 %</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">0.8 – 1.2 %</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; text-align: center;">0.4 – 0.5 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">1.1 – 5.0</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; text-align: center;">1.5</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><br/><p style="margin:0px">The following summarizes warrants issued with debt activity:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 269.267;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 16.8;"></td><td style="width: 93.133;"></td><td style="width: 16.667;"></td><td style="width: 86.4;"></td><td style="width: 16.8;"></td><td style="width: 76.933;"></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Exercise Price per Share</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Remaining Contractual Term </b></p> <p style="margin:0px; text-align: center;"><b>(in years)</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Aggregate Intrinsic Value</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">642,700</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.44</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">554,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.13</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Cancelled</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(600,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.40</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2015</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">597,200</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.41</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">9,759,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.58</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Exercised</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(1,330,357)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.53</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">9,025,843</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.63</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.9</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">26,630,710</p> </td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Exercisable at December 31, 2016</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">9,025,843</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.63</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.9</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">26,630,710</p> </td></tr> </table><br/><p style="margin:0px"><b>2013 Warrants</b></p><br/><p style="margin:0px">Between July 11, 2013 and September 19, 2013, we issued 973,000 shares of our common stock and 973,000 fully-vested warrants (the “2013 Warrants”) for cash consideration of $1.00 per share. Each 2013 Warrant entitled the holder to purchase one share of our common stock at a price of $10.00 per share. The 2013 Warrants expired unexercised on August 1, 2016.</p><br/></div>
</us-gaap:StockholdersEquityNoteDisclosureTextBlock>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription contextRef="c210_From1Jan2016To31Dec2016_IncentivePlanMember"> On October 29, 2014, the Board authorized the adoption of and on June 26, 2015, our stockholders ratified our 2014 Equity Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the issuance of up to 10 million shares of our common stock, and is designed to provide an additional incentive to executives, employees, directors and key consultants, aligning our long term interests with participants. In April 2016, we filed a Registration Statement on Form S-8 (the “Registration Statement”), which automatically became effective in May 2016. The Registration Statement relates to 10,000,000 shares of our common stock, which are issuable pursuant to, or upon exercise of, options that have been granted or may be granted under our Incentive Plan.Share-based compensation costs for award grants to employees and directors (“Employee Awards”) are recognized on a straight-line basis over the service period for the entire award, with the amount of compensation cost recognized at any date equaling at least the portion of the award that is vested. </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardDescription>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized unitRef="shares" contextRef="c211_AsOf31Dec2016_IncentivePlanMember" decimals="-6"> 10000000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAuthorized>
<cann:EstimatedOptionsForfeitureRate unitRef="pure" contextRef="c212_From1Jan2016To31Dec2016_HourlyEmployeeMember_IncentivePlanMember" decimals="2"> 0.67 </cann:EstimatedOptionsForfeitureRate>
<cann:EstimatedOptionsForfeitureRate unitRef="pure" contextRef="c213_From1Jan2015To31Dec2015_HourlyEmployeeMember_IncentivePlanMember" decimals="2"> 0.25 </cann:EstimatedOptionsForfeitureRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c212_From1Jan2016To31Dec2016_HourlyEmployeeMember_IncentivePlanMember" decimals="INF"> 80500 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c213_From1Jan2015To31Dec2015_HourlyEmployeeMember_IncentivePlanMember" decimals="INF"> 282000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber unitRef="shares" contextRef="c211_AsOf31Dec2016_IncentivePlanMember" decimals="INF"> 8765045 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber>
<us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions unitRef="usd" contextRef="c211_AsOf31Dec2016_IncentivePlanMember" decimals="0"> 2779686 </us-gaap:EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="c210_From1Jan2016To31Dec2016_IncentivePlanMember"> P6M </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c214_From1Jul2016To1Jul2016_WarrantsConsultingServicesMember" decimals="INF"> 35000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c214_From1Jul2016To1Jul2016_WarrantsConsultingServicesMember" decimals="2"> 0.90 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c214_From1Jul2016To1Jul2016_WarrantsConsultingServicesMember"> P5Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c215_From21Sep2016To21Sep2016_WarrantsConsultingServicesMember" decimals="INF"> 20000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c215_From21Sep2016To21Sep2016_WarrantsConsultingServicesMember" decimals="2"> 1.20 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c215_From21Sep2016To21Sep2016_WarrantsConsultingServicesMember"> P5Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c216_From24Apr2015To24Apr2015_WarrantsConsultingServicesMember" decimals="INF"> 20000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c216_From24Apr2015To24Apr2015_WarrantsConsultingServicesMember" decimals="2"> 3.75 </cann:ExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="c216_From24Apr2015To24Apr2015_WarrantsConsultingServicesMember"> P1Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<cann:WarrantsExpirationPeriod contextRef="c216_From24Apr2015To24Apr2015_WarrantsConsultingServicesMember"> P2Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c217_From27Apr2015To27Apr2015_WarrantsConsultingServicesMember" decimals="INF"> 20000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c217_From27Apr2015To27Apr2015_WarrantsConsultingServicesMember" decimals="2"> 3.49 </cann:ExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="c217_From27Apr2015To27Apr2015_WarrantsConsultingServicesMember"> P1Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<cann:WarrantsExpirationPeriod contextRef="c217_From27Apr2015To27Apr2015_WarrantsConsultingServicesMember"> P2Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c218_From26Jun2015To26Jun2015_WarrantsConsultingServicesMember" decimals="INF"> 25000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c218_From26Jun2015To26Jun2015_WarrantsConsultingServicesMember" decimals="2"> 2.10 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c218_From26Jun2015To26Jun2015_WarrantsConsultingServicesMember"> P3Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c219_From31Aug2015To31Aug2015_WarrantsConsultingServicesMember" decimals="INF"> 5000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c219_From31Aug2015To31Aug2015_WarrantsConsultingServicesMember" decimals="2"> 1.03 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c219_From31Aug2015To31Aug2015_WarrantsConsultingServicesMember"> P3Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c220_From18Dec2015To18Dec2015_WarrantsConsultingServicesMember" decimals="INF"> 7500 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c220_From18Dec2015To18Dec2015_WarrantsConsultingServicesMember" decimals="2"> 0.60 </cann:ExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="c220_From18Dec2015To18Dec2015_WarrantsConsultingServicesMember"> P1Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<cann:WarrantsExpirationPeriod contextRef="c220_From18Dec2015To18Dec2015_WarrantsConsultingServicesMember"> P3Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c221_From26Jun2015To26Jun2015_WarrantsConsultingServicesMember_ChiefFinancialOfficerMember" decimals="INF"> 25000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c221_From26Jun2015To26Jun2015_WarrantsConsultingServicesMember_ChiefFinancialOfficerMember" decimals="2"> 2.10 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c221_From26Jun2015To26Jun2015_WarrantsConsultingServicesMember_ChiefFinancialOfficerMember"> P3Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c222_From1Jul2015To1Jul2015_WarrantsConsultingServicesMember" decimals="INF"> 25000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c222_From1Jul2015To1Jul2015_WarrantsConsultingServicesMember" decimals="2"> 1.88 </cann:ExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1 contextRef="c222_From1Jul2015To1Jul2015_WarrantsConsultingServicesMember"> P1Y </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1>
<cann:WarrantsExpirationPeriod contextRef="c222_From1Jul2015To1Jul2015_WarrantsConsultingServicesMember"> P3Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c223_From1Mar2016To31Mar2016_DBOptionAgreementMember" decimals="INF"> 100000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c223_From1Mar2016To31Mar2016_DBOptionAgreementMember" decimals="2"> 0.67 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c223_From1Mar2016To31Mar2016_DBOptionAgreementMember"> P5Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsFairValue unitRef="usd" contextRef="c223_From1Mar2016To31Mar2016_DBOptionAgreementMember" decimals="0"> 55100 </cann:WarrantsFairValue>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c224_From1Jan2016To31Dec2016_IPG4.50WarrantsMember_IronProtectionGroupMember" decimals="INF"> 250000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c224_From1Jan2016To31Dec2016_IPG4.50WarrantsMember_IronProtectionGroupMember" decimals="2"> 4.50 </cann:ExercisePrice>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c225_From1Jan2016To31Dec2016_IPG5.00WarrantsMember_IronProtectionGroupMember" decimals="INF"> 250000 </cann:WarrantsToPurchase>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c225_From1Jan2016To31Dec2016_IPG5.00WarrantsMember_IronProtectionGroupMember" decimals="2"> 5.00 </cann:ExercisePrice>
<cann:WarrantsExpirationPeriod contextRef="c37_From1Jan2016To31Dec2016_IronProtectionGroupMember"> P3Y </cann:WarrantsExpirationPeriod>
<cann:WarrantsFairValue unitRef="usd" contextRef="c224_From1Jan2016To31Dec2016_IPG4.50WarrantsMember_IronProtectionGroupMember" decimals="0"> 421000 </cann:WarrantsFairValue>
<cann:WarrantsFairValue unitRef="usd" contextRef="c225_From1Jan2016To31Dec2016_IPG5.00WarrantsMember_IronProtectionGroupMember" decimals="0"> 412000 </cann:WarrantsFairValue>
<us-gaap:StockIssuedDuringPeriodSharesNewIssues unitRef="shares" contextRef="c226_From1Jan2016To31Dec2016_Warrants2013Member" decimals="INF"> 973000 </us-gaap:StockIssuedDuringPeriodSharesNewIssues>
<cann:WarrantsToPurchase unitRef="shares" contextRef="c226_From1Jan2016To31Dec2016_Warrants2013Member" decimals="INF"> 973000 </cann:WarrantsToPurchase>
<us-gaap:SaleOfStockPricePerShare unitRef="usdPershares" contextRef="c227_AsOf31Dec2016_Warrants2013Member" decimals="2"> 1.00 </us-gaap:SaleOfStockPricePerShare>
<cann:ExercisePrice unitRef="usdPershares" contextRef="c226_From1Jan2016To31Dec2016_Warrants2013Member" decimals="2"> 10.00 </cann:ExercisePrice>
<cann:SharebasedExpenseTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> Share-based compensation expense consisted of the following:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Employee stock options</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">3,346,692</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">1,500,783</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Consulting services warrants</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">150,165</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">77,918</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">DB Option Agreement warrants</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">55,100</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Stock awards (see Note 7)</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">200,355</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">3,839,971</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: right;">3,752,312</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: right;">5,418,672</p> </td></tr> </table></div>
</cann:SharebasedExpenseTableTextBlock>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c228_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="0"> 3346692 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c229_From1Jan2015To31Dec2015_EmployeeAwardsMember" decimals="0"> 1500783 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c230_From1Jan2016To31Dec2016_ConsultingAwardsMember" decimals="0"> 150165 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c231_From1Jan2015To31Dec2015_ConsultingAwardsMember" decimals="0"> 77918 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c232_From1Jan2016To31Dec2016_DBOptionAgreementMember" decimals="0"> 55100 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c233_From1Jan2016To31Dec2016_StockAwardsMember" decimals="0"> 200355 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c234_From1Jan2015To31Dec2015_StockAwardsMember" decimals="0"> 3839971 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 3752312 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:AllocatedShareBasedCompensationExpense unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 5418672 </us-gaap:AllocatedShareBasedCompensationExpense>
<us-gaap:ScheduleOfAssumptionsUsedTableTextBlock contextRef="c235_From1Jan2016To31Dec2016_EmployeeAwardsMember">
<div style="font-family: Times New Roman; font-size: 10pt; "> The following summarizes the Black-Scholes assumptions used for Employee Awards:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="top" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Exercise price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: center;">0.61 – 3.20</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;">0.60 – 3.75</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Stock price on date of grant</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: center;">0.63 – 3.20</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;">0.55 – 3.75</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: center;">146 – 153 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-6.933px; text-align: center;">151 – 169 %</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: center;">0.7 – 1.9 %</p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: center;">0.9 – 2.5 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: center;">3.0 – 5.0</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: center;">3.0 – 10.0</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.067;"></td><td style="width: 16.8;"></td><td style="width: 85.8;"></td><td style="width: 17.4;"></td><td style="width: 83.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 186.6;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="top"><p style="margin:0px">Exercise price</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;">0.60 – 1.20</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">0.60 – 3.75</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Stock price, date of valuation</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">1.91 – 2.33</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">0.52 – 0.89</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="top"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">146 – 163 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">150 – 157 %</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">0.8 – 1.3 %</p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">1.1 – 1.3 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">2.0 – 4.8</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;">2.0 – 3.0</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; padding-left:-5.867px; padding-right:-7.667px; text-align: center;"></p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 432;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 432;" valign="top"><p style="margin:0px">Stock price on date of grant</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">$ 0.61</p> </td></tr> <tr><td style="margin-top:0px; width: 432;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">150 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 432;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.2 %</p> </td></tr> <tr><td style="margin-top:0px; width: 432;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">5.0</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 432;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 336;"></td><td style="width: 96;"></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="bottom"><p style="margin:0px; text-align: center;">134 %</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;">1.0 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 96;" valign="top"><p style="margin:0px; text-align: center;">3.0</p> </td></tr> <tr><td style="margin-top:0px; width: 336;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 96;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.067;"></td><td style="width: 16.8;"></td><td style="width: 85.8;"></td><td style="width: 17.4;"></td><td style="width: 83.4;"></td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 186.6;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>Year ended December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="top"><p style="margin:0px">Volatility</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="bottom"><p style="margin:0px; text-align: center;">148 – 158 %</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;">125 – 132 %</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Risk-free interest rate</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">0.8 – 1.2 %</p> </td><td style="margin-top:0px; width: 17.4;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; text-align: center;">0.4 – 0.5 %</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Expected life (years)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;">1.1 – 5.0</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; text-align: center;">1.5</p> </td></tr> <tr><td style="margin-top:0px; width: 469.067;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Dividend yield</p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 85.8;" valign="top"><p style="margin:0px; text-align: center;"></p> </td><td style="margin-top:0px; width: 17.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; text-align: center;"></p> </td></tr> </table></div>
</us-gaap:ScheduleOfAssumptionsUsedTableTextBlock>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c236_AsOf31Dec2016_EmployeeAwardsMember_MinimumMember" decimals="2"> 0.61 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c237_AsOf31Dec2016_EmployeeAwardsMember_MaximumMember" decimals="2"> 3.20 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c238_AsOf31Dec2015_EmployeeAwardsMember_MinimumMember" decimals="2"> 0.60 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c239_AsOf31Dec2015_EmployeeAwardsMember_MaximumMember" decimals="2"> 3.75 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c240_From1Jan2016To31Dec2016_EmployeeAwardsMember_MinimumMember" decimals="2"> 0.63 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c241_From1Jan2016To31Dec2016_EmployeeAwardsMember_MaximumMember" decimals="2"> 3.20 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c242_From1Jan2015To31Dec2015_EmployeeAwardsMember_MinimumMember" decimals="2"> 0.55 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c243_From1Jan2015To31Dec2015_EmployeeAwardsMember_MaximumMember" decimals="2"> 3.75 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c240_From1Jan2016To31Dec2016_EmployeeAwardsMember_MinimumMember" decimals="2"> 1.46 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c241_From1Jan2016To31Dec2016_EmployeeAwardsMember_MaximumMember" decimals="2"> 1.53 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c242_From1Jan2015To31Dec2015_EmployeeAwardsMember_MinimumMember" decimals="2"> 1.51 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c243_From1Jan2015To31Dec2015_EmployeeAwardsMember_MaximumMember" decimals="2"> 1.69 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c240_From1Jan2016To31Dec2016_EmployeeAwardsMember_MinimumMember" decimals="3"> 0.007 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c241_From1Jan2016To31Dec2016_EmployeeAwardsMember_MaximumMember" decimals="3"> 0.019 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c242_From1Jan2015To31Dec2015_EmployeeAwardsMember_MinimumMember" decimals="3"> 0.009 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c243_From1Jan2015To31Dec2015_EmployeeAwardsMember_MaximumMember" decimals="3"> 0.025 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c240_From1Jan2016To31Dec2016_EmployeeAwardsMember_MinimumMember"> P3Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c241_From1Jan2016To31Dec2016_EmployeeAwardsMember_MaximumMember"> P5Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c242_From1Jan2015To31Dec2015_EmployeeAwardsMember_MinimumMember"> P3Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c243_From1Jan2015To31Dec2015_EmployeeAwardsMember_MaximumMember"> P10Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c244_AsOf31Dec2016_ConsultingAwardsMember_MinimumMember" decimals="2"> 0.60 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c245_AsOf31Dec2016_ConsultingAwardsMember_MaximumMember" decimals="2"> 1.20 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c246_AsOf31Dec2015_ConsultingAwardsMember_MinimumMember" decimals="2"> 0.60 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice unitRef="usdPershares" contextRef="c247_AsOf31Dec2015_ConsultingAwardsMember_MaximumMember" decimals="2"> 3.75 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c248_From1Jan2016To31Dec2016_ConsultingAwardsMember_MinimumMember" decimals="2"> 1.91 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c249_From1Jan2016To31Dec2016_ConsultingAwardsMember_MaximumMember" decimals="2"> 2.33 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c250_From1Jan2015To31Dec2015_ConsultingAwardsMember_MinimumMember" decimals="2"> 0.52 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c251_From1Jan2015To31Dec2015_ConsultingAwardsMember_MaximumMember" decimals="2"> 0.89 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c248_From1Jan2016To31Dec2016_ConsultingAwardsMember_MinimumMember" decimals="2"> 1.46 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c249_From1Jan2016To31Dec2016_ConsultingAwardsMember_MaximumMember" decimals="2"> 1.63 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c250_From1Jan2015To31Dec2015_ConsultingAwardsMember_MinimumMember" decimals="2"> 1.50 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c251_From1Jan2015To31Dec2015_ConsultingAwardsMember_MaximumMember" decimals="2"> 1.57 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c248_From1Jan2016To31Dec2016_ConsultingAwardsMember_MinimumMember" decimals="3"> 0.008 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c249_From1Jan2016To31Dec2016_ConsultingAwardsMember_MaximumMember" decimals="3"> 0.013 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c250_From1Jan2015To31Dec2015_ConsultingAwardsMember_MinimumMember" decimals="3"> 0.011 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c251_From1Jan2015To31Dec2015_ConsultingAwardsMember_MaximumMember" decimals="3"> 0.013 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c248_From1Jan2016To31Dec2016_ConsultingAwardsMember_MinimumMember"> P2Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c249_From1Jan2016To31Dec2016_ConsultingAwardsMember_MaximumMember"> P4Y292D </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c250_From1Jan2015To31Dec2015_ConsultingAwardsMember_MinimumMember"> P2Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c251_From1Jan2015To31Dec2015_ConsultingAwardsMember_MaximumMember"> P3Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue unitRef="usdPershares" contextRef="c252_From1Jan2016To31Dec2016_DBOptionAgreementMember" decimals="2"> 0.61 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGrantDateIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c252_From1Jan2016To31Dec2016_DBOptionAgreementMember" decimals="2"> 1.50 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c252_From1Jan2016To31Dec2016_DBOptionAgreementMember" decimals="3"> 0.012 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c252_From1Jan2016To31Dec2016_DBOptionAgreementMember"> P5Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c253_From1Jan2016To31Dec2016_IPGMember" decimals="2"> 1.34 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c253_From1Jan2016To31Dec2016_IPGMember" decimals="3"> 0.010 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c253_From1Jan2016To31Dec2016_IPGMember"> P3Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c254_From1Jan2016To31Dec2016_WarrantsWithDebtMember_MinimumMember" decimals="2"> 1.48 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c255_From1Jan2016To31Dec2016_WarrantsWithDebtMember_MaximumMember" decimals="2"> 1.58 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c256_From1Jan2015To31Dec2015_WarrantsWithDebtMember_MinimumMember" decimals="2"> 1.25 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate unitRef="pure" contextRef="c257_From1Jan2015To31Dec2015_WarrantsWithDebtMember_MaximumMember" decimals="2"> 1.32 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c254_From1Jan2016To31Dec2016_WarrantsWithDebtMember_MinimumMember" decimals="3"> 0.008 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c255_From1Jan2016To31Dec2016_WarrantsWithDebtMember_MaximumMember" decimals="3"> 0.012 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c256_From1Jan2015To31Dec2015_WarrantsWithDebtMember_MinimumMember" decimals="3"> 0.004 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:FairValueAssumptionsRiskFreeInterestRate unitRef="pure" contextRef="c257_From1Jan2015To31Dec2015_WarrantsWithDebtMember_MaximumMember" decimals="3"> 0.005 </us-gaap:FairValueAssumptionsRiskFreeInterestRate>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c254_From1Jan2016To31Dec2016_WarrantsWithDebtMember_MinimumMember"> P1Y36D </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c255_From1Jan2016To31Dec2016_WarrantsWithDebtMember_MaximumMember"> P5Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c256_From1Jan2015To31Dec2015_WarrantsWithDebtMember_MinimumMember"> P1Y6M </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1 contextRef="c257_From1Jan2015To31Dec2015_WarrantsWithDebtMember_MaximumMember"> P1Y6M </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1>
<us-gaap:ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> The following summarizes Employee Awards activity:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 269.267;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 16.8;"></td><td style="width: 93.133;"></td><td style="width: 16.667;"></td><td style="width: 86.4;"></td><td style="width: 16.8;"></td><td style="width: 76.933;"></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Exercise Price per Share</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Remaining Contractual Term </b></p> <p style="margin:0px; text-align: center;"><b>(in years)</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Aggregate Intrinsic Value</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">2,662,000</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.54</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">(153,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">2.39</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2015</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">2,509,000</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.49</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">6,826,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">0.87</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Exercised</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">(153,000)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.00</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">(363,600)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">0.97</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2016</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:3px double #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">8,818,400</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.04</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;">2.6</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: right;">19,191,000</p> </td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Exercisable at December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: right;">1,985,500</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;">1.50</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;">2.1</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: right;">3,480,675</p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 269.267;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 16.8;"></td><td style="width: 93.133;"></td><td style="width: 16.667;"></td><td style="width: 86.4;"></td><td style="width: 16.8;"></td><td style="width: 76.933;"></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Exercise Price per Share</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Remaining Contractual Term </b></p> <p style="margin:0px; text-align: center;"><b>(in years)</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Aggregate Intrinsic Value</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">150,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.40</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">127,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">2.40</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(25,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">2.10</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2015</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">252,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">3.62</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">55,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.01</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Forfeited or expired</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(150,000)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.40</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">157,500</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.96</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.0</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">211,350</p> </td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Exercisable at December 31, 2016</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">157,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.96</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.0</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">211,350</p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 269.267;"></td><td style="width: 16.8;"></td><td style="width: 79.2;"></td><td style="width: 16.8;"></td><td style="width: 93.133;"></td><td style="width: 16.667;"></td><td style="width: 86.4;"></td><td style="width: 16.8;"></td><td style="width: 76.933;"></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Number of Shares</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 93.133;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Exercise Price per Share</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Weighted-average Remaining Contractual Term </b></p> <p style="margin:0px; text-align: center;"><b>(in years)</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 76.933;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Aggregate Intrinsic Value</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2014</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">642,700</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.44</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">554,500</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.13</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Cancelled</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(600,000)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">4.40</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2015</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">597,200</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">1.41</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">  Granted</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">9,759,000</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.58</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">  Exercised</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">(1,330,357)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.53</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 269.267;" valign="bottom"><p style="margin:0px">Outstanding at December 31, 2016</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">9,025,843</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.63</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.9</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">26,630,710</p> </td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; padding:0px"> </p></td></tr> <tr><td style="margin-top:0px; width: 269.267;" valign="bottom"><p style="margin:0px">Exercisable at December 31, 2016</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.2;" valign="top"><p style="margin:0px; text-align: right;">9,025,843</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 93.133;" valign="top"><p style="margin:0px; text-align: center;">0.63</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.4;" valign="top"><p style="margin:0px; text-align: center;">2.9</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; width: 76.933;" valign="top"><p style="margin:0px; text-align: right;">26,630,710</p> </td></tr> </table></div>
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<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c258_From1Jan2015To31Dec2015_EmployeeAwardsMember" decimals="INF"> 2662000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c258_From1Jan2015To31Dec2015_EmployeeAwardsMember" decimals="2"> 1.54 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod unitRef="shares" contextRef="c258_From1Jan2015To31Dec2015_EmployeeAwardsMember" decimals="INF"> 153000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c258_From1Jan2015To31Dec2015_EmployeeAwardsMember" decimals="2"> 2.39 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c259_AsOf31Dec2015_EmployeeAwardsMember" decimals="INF"> 2509000 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c259_AsOf31Dec2015_EmployeeAwardsMember" decimals="2"> 1.49 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="INF"> 6826000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="2"> 0.87 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised unitRef="shares" contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="INF"> -153000 </us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="2"> 1.00 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod unitRef="shares" contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="INF"> 363600 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember" decimals="2"> 0.97 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c261_AsOf31Dec2016_EmployeeAwardsMember" decimals="INF"> 8818400 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c261_AsOf31Dec2016_EmployeeAwardsMember" decimals="2"> 1.04 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember"> P2Y219D </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue unitRef="usd" contextRef="c261_AsOf31Dec2016_EmployeeAwardsMember" decimals="0"> 19191000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber unitRef="shares" contextRef="c261_AsOf31Dec2016_EmployeeAwardsMember" decimals="INF"> 1985500 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c261_AsOf31Dec2016_EmployeeAwardsMember" decimals="2"> 1.50 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 contextRef="c260_From1Jan2016To31Dec2016_EmployeeAwardsMember"> P2Y36D </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1 unitRef="usd" contextRef="c261_AsOf31Dec2016_EmployeeAwardsMember" decimals="-6"> 3480675000000 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c262_AsOf31Dec2014_ConsultingAwardsMember" decimals="INF"> 150000 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c262_AsOf31Dec2014_ConsultingAwardsMember" decimals="2"> 4.40 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c263_From1Jan2015To31Dec2015_ConsultingAwardsMember" decimals="INF"> 127500 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c263_From1Jan2015To31Dec2015_ConsultingAwardsMember" decimals="2"> 2.40 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod unitRef="shares" contextRef="c263_From1Jan2015To31Dec2015_ConsultingAwardsMember" decimals="INF"> 25000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c263_From1Jan2015To31Dec2015_ConsultingAwardsMember" decimals="2"> 2.10 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c264_AsOf31Dec2015_ConsultingAwardsMember" decimals="INF"> 252500 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c264_AsOf31Dec2015_ConsultingAwardsMember" decimals="2"> 3.62 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c265_From1Jan2016To31Dec2016_ConsultingAwardsMember" decimals="INF"> 55000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c265_From1Jan2016To31Dec2016_ConsultingAwardsMember" decimals="2"> 1.01 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod unitRef="shares" contextRef="c265_From1Jan2016To31Dec2016_ConsultingAwardsMember" decimals="INF"> 150000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExpirationsInPeriod>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c265_From1Jan2016To31Dec2016_ConsultingAwardsMember" decimals="2"> 4.40 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExpirationsInPeriodWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c266_AsOf31Dec2016_ConsultingAwardsMember" decimals="INF"> 157500 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c266_AsOf31Dec2016_ConsultingAwardsMember" decimals="2"> 1.96 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 contextRef="c265_From1Jan2016To31Dec2016_ConsultingAwardsMember"> P2Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue unitRef="usd" contextRef="c266_AsOf31Dec2016_ConsultingAwardsMember" decimals="0"> 211350 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber unitRef="shares" contextRef="c266_AsOf31Dec2016_ConsultingAwardsMember" decimals="INF"> 157500 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c266_AsOf31Dec2016_ConsultingAwardsMember" decimals="2"> 1.96 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 contextRef="c265_From1Jan2016To31Dec2016_ConsultingAwardsMember"> P2Y </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1 unitRef="usd" contextRef="c266_AsOf31Dec2016_ConsultingAwardsMember" decimals="-6"> 211350000000 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c267_AsOf31Dec2014_WarrantsWithDebtMember" decimals="INF"> 642700 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c267_AsOf31Dec2014_WarrantsWithDebtMember" decimals="2"> 4.44 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c268_From1Jan2015To31Dec2015_WarrantsWithDebtMember" decimals="INF"> 554500 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c268_From1Jan2015To31Dec2015_WarrantsWithDebtMember" decimals="2"> 1.13 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:StockIssuedDuringPeriodSharesShareBasedCompensationForfeited unitRef="shares" contextRef="c268_From1Jan2015To31Dec2015_WarrantsWithDebtMember" decimals="INF"> 600000 </us-gaap:StockIssuedDuringPeriodSharesShareBasedCompensationForfeited>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c268_From1Jan2015To31Dec2015_WarrantsWithDebtMember" decimals="2"> 4.40 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c269_AsOf31Dec2015_WarrantsWithDebtMember" decimals="INF"> 597200 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c269_AsOf31Dec2015_WarrantsWithDebtMember" decimals="2"> 1.41 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross unitRef="shares" contextRef="c270_From1Jan2016To31Dec2016_WarrantsWithDebtMember" decimals="INF"> 9759000 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c270_From1Jan2016To31Dec2016_WarrantsWithDebtMember" decimals="2"> 0.58 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice>
<us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised unitRef="shares" contextRef="c270_From1Jan2016To31Dec2016_WarrantsWithDebtMember" decimals="INF"> -1330357 </us-gaap:StockIssuedDuringPeriodSharesStockOptionsExercised>
<us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c270_From1Jan2016To31Dec2016_WarrantsWithDebtMember" decimals="2"> 0.53 </us-gaap:ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares unitRef="shares" contextRef="c271_AsOf31Dec2016_WarrantsWithDebtMember" decimals="INF"> 9025843 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue unitRef="usdPershares" contextRef="c271_AsOf31Dec2016_WarrantsWithDebtMember" decimals="2"> 0.63 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 contextRef="c270_From1Jan2016To31Dec2016_WarrantsWithDebtMember"> P2Y328D </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue unitRef="usd" contextRef="c271_AsOf31Dec2016_WarrantsWithDebtMember" decimals="0"> 26630710 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber unitRef="shares" contextRef="c271_AsOf31Dec2016_WarrantsWithDebtMember" decimals="INF"> 9025843 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber>
<us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice unitRef="usdPershares" contextRef="c271_AsOf31Dec2016_WarrantsWithDebtMember" decimals="2"> 0.63 </us-gaap:ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 contextRef="c270_From1Jan2016To31Dec2016_WarrantsWithDebtMember"> P2Y328D </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1>
<us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1 unitRef="usd" contextRef="c271_AsOf31Dec2016_WarrantsWithDebtMember" decimals="-6"> 26630710000000 </us-gaap:SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1>
<us-gaap:EarningsPerShareTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 12.  NET LOSS PER SHARE</b></p><br/><p style="margin:0px">Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the reporting period.  Diluted net loss per share is computed similarly to basic loss per share, except that it includes the potential dilution that could occur if dilutive securities are exercised.</p><br/><p style="margin:0px">Outstanding stock options and common stock warrants are considered anti-dilutive because we are in a net loss position.  Accordingly, the number of weighted average shares outstanding for basic and fully diluted net loss per share are the same.</p><br/><p style="margin:0px">The following summarizes equity instruments that may, in the future, have a dilutive effect on earnings per share:</p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Stock options</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;">8,818,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">2,509,000</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Warrants</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: right;">9,783,343</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">2,322,700</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Common stock upon conversion of debt</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">31,661</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Stock payable</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">630,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;">18,601,743</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">5,493,361</p> </td></tr> </table><br/></div>
</us-gaap:EarningsPerShareTextBlock>
<cann:DilutiveEffectOnEarningsPerShareTableTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> The following summarizes equity instruments that may, in the future, have a dilutive effect on earnings per share:<br /><br /><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Stock options</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;">8,818,400</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">2,509,000</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Warrants</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: right;">9,783,343</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">2,322,700</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="top"><p style="margin:0px">Common stock upon conversion of debt</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">31,661</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px">Stock payable</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">630,000</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;">18,601,743</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:3px double #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">5,493,361</p> </td></tr> </table></div>
</cann:DilutiveEffectOnEarningsPerShareTableTextBlock>
<us-gaap:IncrementalCommonSharesAttributableToShareBasedPaymentArrangements unitRef="shares" contextRef="c272_From1Jan2016To31Dec2016_ScenarioNetGainMember" decimals="INF"> 8818400 </us-gaap:IncrementalCommonSharesAttributableToShareBasedPaymentArrangements>
<us-gaap:IncrementalCommonSharesAttributableToShareBasedPaymentArrangements unitRef="shares" contextRef="c273_From1Jan2015To31Dec2015_ScenarioNetGainMember" decimals="INF"> 2509000 </us-gaap:IncrementalCommonSharesAttributableToShareBasedPaymentArrangements>
<us-gaap:IncrementalCommonSharesAttributableToCallOptionsAndWarrants unitRef="shares" contextRef="c272_From1Jan2016To31Dec2016_ScenarioNetGainMember" decimals="INF"> 9783343 </us-gaap:IncrementalCommonSharesAttributableToCallOptionsAndWarrants>
<us-gaap:IncrementalCommonSharesAttributableToCallOptionsAndWarrants unitRef="shares" contextRef="c273_From1Jan2015To31Dec2015_ScenarioNetGainMember" decimals="INF"> 2322700 </us-gaap:IncrementalCommonSharesAttributableToCallOptionsAndWarrants>
<us-gaap:IncrementalCommonSharesAttributableToConversionOfDebtSecurities unitRef="shares" contextRef="c273_From1Jan2015To31Dec2015_ScenarioNetGainMember" decimals="INF"> 31661 </us-gaap:IncrementalCommonSharesAttributableToConversionOfDebtSecurities>
<us-gaap:IncrementalCommonSharesAttributableToEquityUnitPurchaseAgreements unitRef="shares" contextRef="c273_From1Jan2015To31Dec2015_ScenarioNetGainMember" decimals="INF"> 630000 </us-gaap:IncrementalCommonSharesAttributableToEquityUnitPurchaseAgreements>
<us-gaap:DilutiveSecurities unitRef="usd" contextRef="c272_From1Jan2016To31Dec2016_ScenarioNetGainMember" decimals="0"> 18601743 </us-gaap:DilutiveSecurities>
<us-gaap:DilutiveSecurities unitRef="usd" contextRef="c273_From1Jan2015To31Dec2015_ScenarioNetGainMember" decimals="0"> 5493361 </us-gaap:DilutiveSecurities>
<us-gaap:SubsequentEventsTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px; page-break-before:always"><b>NOTE 13.   SUBSEQUENT EVENTS</b></p><br/><p style="margin:0px">In January 2017, we loaned an additional $26,500 to DB Arizona, a related party, under the note agreement that bears interest at 14% with principal and interest due on May 30, 2017.</p><br/><p style="margin:0px">In 2017, 2,082,143 shares were issued upon the exercise of 12% Warrants for consideration of $495,625 in cash and $668,750 in reduction of principal under the 12% Notes.</p><br/></div>
</us-gaap:SubsequentEventsTextBlock>
<us-gaap:DebtInstrumentFaceAmount unitRef="usd" contextRef="c274_AsOf31Jan2017_DBArizonaMember" decimals="0"> 26500 </us-gaap:DebtInstrumentFaceAmount>
<us-gaap:DebtInstrumentInterestRateDuringPeriod unitRef="pure" contextRef="c275_From1Jan2017To31Jan2017_DBArizonaMember" decimals="2"> 0.14 </us-gaap:DebtInstrumentInterestRateDuringPeriod>
<us-gaap:DebtInstrumentMaturityDate contextRef="c275_From1Jan2017To31Jan2017_DBArizonaMember"> 2017-05-30 </us-gaap:DebtInstrumentMaturityDate>
<us-gaap:DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1 unitRef="shares" contextRef="c276_From1Jan2017To31Jan2017_TwelvePercentWarrantsMember" decimals="INF"> 2082143 </us-gaap:DebtConversionConvertedInstrumentWarrantsOrOptionsIssued1>
<us-gaap:ProceedsFromWarrantExercises unitRef="usd" contextRef="c276_From1Jan2017To31Jan2017_TwelvePercentWarrantsMember" decimals="0"> 495625 </us-gaap:ProceedsFromWarrantExercises>
<cann:ReductionOfPrincipal unitRef="usd" contextRef="c276_From1Jan2017To31Jan2017_TwelvePercentWarrantsMember" decimals="0"> 668750 </cann:ReductionOfPrincipal>
<us-gaap:SegmentReportingDisclosureTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <p style="margin:0px"><b>NOTE 14.   SEGMENT INFORMATION</b></p><br/><p style="margin:0px">Our operations are organized into four segments: Security and Cash Management Services; Marketing and Products; Consulting and Advisory; and Finance and Real Estate.  All revenue originates and all assets are located in the United States.  We have revised our disclosure to correspond to the information provided to the chief operating decision maker.</p><br/><p style="margin:0px"><b>Year ended December 31</b></p><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 247.2;"></td><td style="width: 16.667;"></td><td style="width: 83.4;"></td><td style="width: 16.8;"></td><td style="width: 78;"></td><td style="width: 16.8;"></td><td style="width: 79.8;"></td><td style="width: 16.8;"></td><td style="width: 61.2;"></td><td style="width: 16.8;"></td><td style="width: 86.533;"></td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Security</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 78;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Marketing </b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Operations</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Finance</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Total</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Revenues</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;">2,232,915</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;">188,594</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;">432,046</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">128,427</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">2,981,982</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px">Costs and expenses</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;">(2,253,194)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;">(387,330)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;">(555,892)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">(32,143)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(3,228,559)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Interest expense</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">(8,669)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(8,669)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;">(20,279)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;">(198,736)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;">(123,846)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">87,615</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(255,246)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Corporate expenses</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(32,544,431)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">Net loss</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(32,799,677)</p> </td></tr> </table><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 247.2;"></td><td style="width: 16.667;"></td><td style="width: 83.4;"></td><td style="width: 16.8;"></td><td style="width: 78;"></td><td style="width: 16.8;"></td><td style="width: 79.8;"></td><td style="width: 16.8;"></td><td style="width: 61.2;"></td><td style="width: 16.8;"></td><td style="width: 86.533;"></td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Security</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 78;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Marketing </b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Operations</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Finance</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Total</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Revenues</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;">1,490,832</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="top"><p style="margin:0px; text-align: right;">26,420</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;">144,944</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">100,782</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">1,762,978</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px">Costs and expenses</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;">(1,611,201)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="top"><p style="margin:0px; text-align: right;">(43,716)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;">(367,358)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">(32,051)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(2,054,326)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Interest expense</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">(12,587)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(12,587)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;">(120,369)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 78;" valign="top"><p style="margin:0px; text-align: right;">(17,296)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;">(222,414)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">56,144</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(303,935)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Corporate expenses</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(8,482,342)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">Net loss</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(8,786,277)</p> </td></tr> </table><br/><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px"><b>Total assets</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Security</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;">141,140</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">1,784,063</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px">Marketing</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: right;">50,919</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">96,343</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Operations</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;">55,750</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">22,268</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Finance</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: right;">515,205</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">431,639</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Corporate</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;">2,094,857</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">1,348,398</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;">2,857,871</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">3,682,711</p> </td></tr> </table><br/></div>
</us-gaap:SegmentReportingDisclosureTextBlock>
<us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 247.2;"></td><td style="width: 16.667;"></td><td style="width: 83.4;"></td><td style="width: 16.8;"></td><td style="width: 78;"></td><td style="width: 16.8;"></td><td style="width: 79.8;"></td><td style="width: 16.8;"></td><td style="width: 61.2;"></td><td style="width: 16.8;"></td><td style="width: 86.533;"></td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Security</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 78;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Marketing </b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Operations</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Finance</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Total</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Revenues</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;">2,232,915</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;">188,594</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;">432,046</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">128,427</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">2,981,982</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px">Costs and expenses</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;">(2,253,194)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;">(387,330)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;">(555,892)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">(32,143)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(3,228,559)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Interest expense</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">(8,669)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(8,669)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: right;">(20,279)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 78;" valign="bottom"><p style="margin:0px; text-align: right;">(198,736)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: right;">(123,846)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">87,615</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(255,246)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Corporate expenses</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(32,544,431)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">Net loss</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: right;">(32,799,677)</p> </td></tr> </table><table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 247.2;"></td><td style="width: 16.667;"></td><td style="width: 83.4;"></td><td style="width: 16.8;"></td><td style="width: 78;"></td><td style="width: 16.8;"></td><td style="width: 79.8;"></td><td style="width: 16.8;"></td><td style="width: 61.2;"></td><td style="width: 16.8;"></td><td style="width: 86.533;"></td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td><td style="margin-top:0px; width: 16.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 83.4;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Security</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 78;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Marketing </b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 79.8;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Operations</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Finance</b></p> </td><td style="margin-top:0px; width: 16.8;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 86.533;" valign="bottom"><p style="margin:0px; text-align: center;"><b>Total</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Revenues</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;">1,490,832</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="top"><p style="margin:0px; text-align: right;">26,420</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;">144,944</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">100,782</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">1,762,978</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px">Costs and expenses</p> </td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;">(1,611,201)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="top"><p style="margin:0px; text-align: right;">(43,716)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;">(367,358)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">(32,051)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(2,054,326)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Interest expense</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;"></p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">(12,587)</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(12,587)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 83.4;" valign="top"><p style="margin:0px; text-align: right;">(120,369)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 78;" valign="top"><p style="margin:0px; text-align: right;">(17,296)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 79.8;" valign="top"><p style="margin:0px; text-align: right;">(222,414)</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-top:1px solid #000000; border-bottom:3px double #000000; width: 61.2;" valign="top"><p style="margin:0px; text-align: right;">56,144</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-top:1px solid #000000; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(303,935)</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 247.2;" valign="top"><p style="margin:0px">Corporate expenses</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 61.2;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(8,482,342)</p> </td></tr> <tr><td style="margin-top:0px; width: 247.2;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 83.4;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 78;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 79.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 61.2;" valign="bottom"><p style="margin:0px; text-align: right;">Net loss</p> </td><td style="margin-top:0px; width: 16.8;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 86.533;" valign="top"><p style="margin:0px; text-align: right;">(8,786,277)</p> </td></tr> </table></div>
</us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c277_From1Jan2016To31Dec2016_SecurityAndCashManagementMember" decimals="0"> 2232915 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c278_From1Jan2016To31Dec2016_MarketingProductsMember" decimals="0"> 188594 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c279_From1Jan2016To31Dec2016_ConsultingAdvisoryMember" decimals="0"> 432046 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c280_From1Jan2016To31Dec2016_FinanceAndRealEstateMember" decimals="0"> 128427 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 2981982 </us-gaap:SalesRevenueNet>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c277_From1Jan2016To31Dec2016_SecurityAndCashManagementMember" decimals="0"> 2253194 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c278_From1Jan2016To31Dec2016_MarketingProductsMember" decimals="0"> 387330 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c279_From1Jan2016To31Dec2016_ConsultingAdvisoryMember" decimals="0"> 555892 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c280_From1Jan2016To31Dec2016_FinanceAndRealEstateMember" decimals="0"> 32143 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 3228559 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:InterestAndDebtExpense unitRef="usd" contextRef="c280_From1Jan2016To31Dec2016_FinanceAndRealEstateMember" decimals="0"> 8669 </us-gaap:InterestAndDebtExpense>
<us-gaap:InterestAndDebtExpense unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 8669 </us-gaap:InterestAndDebtExpense>
<cann:TotalRevenues unitRef="usd" contextRef="c277_From1Jan2016To31Dec2016_SecurityAndCashManagementMember" decimals="0"> 20279 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c278_From1Jan2016To31Dec2016_MarketingProductsMember" decimals="0"> 198736 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c279_From1Jan2016To31Dec2016_ConsultingAdvisoryMember" decimals="0"> 123846 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c280_From1Jan2016To31Dec2016_FinanceAndRealEstateMember" decimals="0"> -87615 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 255246 </cann:TotalRevenues>
<us-gaap:MarketingExpense unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> 32544431 </us-gaap:MarketingExpense>
<cann:ProfitLosses unitRef="usd" contextRef="c2_From1Jan2016To31Dec2016" decimals="0"> -32799677 </cann:ProfitLosses>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c281_From1Jan2015To31Dec2015_SecurityAndCashManagementMember" decimals="0"> 1490832 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c282_From1Jan2015To31Dec2015_MarketingProductsMember" decimals="0"> 26420 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c283_From1Jan2015To31Dec2015_ConsultingAdvisoryMember" decimals="0"> 144944 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c284_From1Jan2015To31Dec2015_FinanceAndRealEstateMember" decimals="0"> 100782 </us-gaap:SalesRevenueNet>
<us-gaap:SalesRevenueNet unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 1762978 </us-gaap:SalesRevenueNet>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c281_From1Jan2015To31Dec2015_SecurityAndCashManagementMember" decimals="0"> 1611201 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c282_From1Jan2015To31Dec2015_MarketingProductsMember" decimals="0"> 43716 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c283_From1Jan2015To31Dec2015_ConsultingAdvisoryMember" decimals="0"> 367358 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c284_From1Jan2015To31Dec2015_FinanceAndRealEstateMember" decimals="0"> 32051 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:CostOfGoodsAndServicesSoldOverhead unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 2054326 </us-gaap:CostOfGoodsAndServicesSoldOverhead>
<us-gaap:InterestAndDebtExpense unitRef="usd" contextRef="c284_From1Jan2015To31Dec2015_FinanceAndRealEstateMember" decimals="0"> 12587 </us-gaap:InterestAndDebtExpense>
<us-gaap:InterestAndDebtExpense unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 12587 </us-gaap:InterestAndDebtExpense>
<cann:TotalRevenues unitRef="usd" contextRef="c281_From1Jan2015To31Dec2015_SecurityAndCashManagementMember" decimals="0"> 120369 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c282_From1Jan2015To31Dec2015_MarketingProductsMember" decimals="0"> 17296 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c283_From1Jan2015To31Dec2015_ConsultingAdvisoryMember" decimals="0"> 222414 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c284_From1Jan2015To31Dec2015_FinanceAndRealEstateMember" decimals="0"> -56144 </cann:TotalRevenues>
<cann:TotalRevenues unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 303935 </cann:TotalRevenues>
<us-gaap:MarketingExpense unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> 8482342 </us-gaap:MarketingExpense>
<cann:ProfitLosses unitRef="usd" contextRef="c3_From1Jan2015To31Dec2015" decimals="0"> -8786277 </cann:ProfitLosses>
<us-gaap:ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock contextRef="c2_From1Jan2016To31Dec2016">
<div style="font-family: Times New Roman; font-size: 10pt; "> <table style="margin-top:0px; font-size:10pt" cellpadding="0" cellspacing="0"><tr style="font-size:0"><td style="width: 469.667;"></td><td style="width: 18;"></td><td style="width: 84;"></td><td style="width: 18;"></td><td style="width: 82.333;"></td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 184.333;" valign="bottom" colspan="3"><p style="margin:0px; text-align: center;"><b>December 31,</b></p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="top"><p style="margin:0px"><b>Total assets</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 84;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2016</b></p> </td><td style="margin-top:0px; width: 18;" valign="top"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; border-bottom:1px solid #000000; width: 82.333;" valign="bottom"><p style="margin:0px; text-align: center;"><b>2015</b></p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Security</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;">141,140</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">1,784,063</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px">Marketing</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: right;">50,919</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">96,343</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Operations</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 84;" valign="top"><p style="margin:0px; text-align: right;">55,750</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">22,268</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Finance</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 84;" valign="top"><p style="margin:0px; text-align: right;">515,205</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">431,639</p> </td></tr> <tr><td style="margin-top:0px; background-color:#DEEAF6; width: 469.667;" valign="bottom"><p style="margin:0px; padding-left:4.333px; text-indent:-4.333px">Corporate</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;">2,094,857</p> </td><td style="margin-top:0px; background-color:#DEEAF6; width: 18;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; background-color:#DEEAF6; border-bottom:1px solid #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">1,348,398</p> </td></tr> <tr><td style="margin-top:0px; width: 469.667;" valign="bottom"><p style="margin:0px; padding:0px"> </p></td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 84;" valign="top"><p style="margin:0px; text-align: right;">2,857,871</p> </td><td style="margin-top:0px; width: 18;" valign="bottom"><p style="margin:0px; padding-right:-6.333px; text-align: right;">$</p> </td><td style="margin-top:0px; border-bottom:3px double #000000; width: 82.333;" valign="top"><p style="margin:0px; text-align: right;">3,682,711</p> </td></tr> </table></div>
</us-gaap:ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock>
<us-gaap:AssetsNet unitRef="usd" contextRef="c285_AsOf31Dec2015_SecurityAndCashManagementMember" decimals="0"> 141140 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c286_AsOf31Dec2014_SecurityAndCashManagementMember" decimals="0"> 1784063 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c287_AsOf31Dec2015_MarketingProductsMember" decimals="0"> 50919 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c288_AsOf31Dec2014_MarketingProductsMember" decimals="0"> 96343 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c289_AsOf31Dec2015_ConsultingAdvisoryMember" decimals="0"> 55750 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c290_AsOf31Dec2014_ConsultingAdvisoryMember" decimals="0"> 22268 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c291_AsOf31Dec2015_FinanceAndRealEstateMember" decimals="0"> 515205 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c292_AsOf31Dec2014_FinanceAndRealEstateMember" decimals="0"> 431639 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c293_AsOf31Dec2015_CorporateMember" decimals="0"> 2094857 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c294_AsOf31Dec2014_CorporateMember" decimals="0"> 1348398 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c1_AsOf31Dec2015" decimals="0"> 2857871 </us-gaap:AssetsNet>
<us-gaap:AssetsNet unitRef="usd" contextRef="c4_AsOf31Dec2014" decimals="0"> 3682711 </us-gaap:AssetsNet>
</xbrl>


6 Subsequent Filings that Reference this Filing

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 4/10/24  TREES Corp. (Colorado)            10-K       12/31/23  121:9.3M                                   EdgarAgents LLC/FA
 4/17/23  TREES Corp. (Colorado)            10-K       12/31/22  115:12M                                    Toppan Merrill Bridge/FA
 3/25/22  TREES Corp. (Colorado)            10-K       12/31/21  117:12M                                    Toppan Merrill Bridge/FA
 6/21/21  TREES Corp. (Colorado)            S-1/A                166:19M                                    Toppan Merrill Bridge/FA
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 4/01/21  TREES Corp. (Colorado)            10-K       12/31/20  116:12M                                    Toppan Merrill Bridge/FA
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