Cash Flow

v3.7.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,594,515) $ (5,950,391)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,450 6,198
Accretion of interest and amortization of debt discount 1,154,439 839,234
Gain on settlement of debt (5,044)
Stock-based compensation expense 74,529 101,462
Amortization of third party fees paid in common stock 15,558 105,200
Impairment loss on investment 6,069
Change in fair value of derivative liabilities 3,061,752 4,068,390
Changes in operating assets and liabilities:    
Accounts receivable (237,407) (280,655)
Inventories (35,099) 71,822
Prepaid expenses and other assets 50,358 43,303
Accounts payable 265,480 (161,253)
Accrued employee compensation 443 38,110
Deferred revenue and other accrued expenses 7,083 (109,834)
Net cash used in operating activities (1,228,860) (1,233,458)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (15,608)
Net cash used in investing activities (15,608)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party convertible debt 96,667
Payment of related party debt
Net proceeds from revolving note payable 920,000
Net proceeds from convertible debt 1,025,500
Payments on convertible debt (300,000)
Net proceeds from non-convertible debt 834,500 256,660
Payments on non-convertible debt (226,957) (168,765)
Net cash provided by financing activities 1,227,543 1,210,062
NET DECREASE IN CASH (16,925) (23,396)
CASH AT BEGINNING OF YEAR 138,363 116,783
CASH AT END OF PERIOD 121,438 93,387
SUPPLEMENTAL INFORMATION    
Interest paid in cash 62,802 1,154
NON CASH TRANSACTIONS:    
Discount due to warrants issued with debt 238,250
Unrealized loss from available-for-sale equity securities 139,698
Debt discount from derivative liability 1,294,049
Convertible debt held in escrow $ 166,882

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