Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (7,978,844) $ (6,321,542)
Adjustments to reconcile net loss to net cash used in operating activities:    
Non-cash lease expense 43,435
Common stock issued for debt extension 33,218
Depreciation and amortization 68,849 70,681
Accretion of interest and amortization of debt discount 886,950 1,405,490
Issuance of incentive shares and common stock warrants 663,130
Issuance of shares for services rendered 245,000
Inventory reserve recovery (39,900)
Loss(Gain) on extinguishment of debt 332,474 (335,132)
Stock-based compensation expense 722,576 299,584
Shares issued with debt 7,800
Impairment loss on investment 3,182
Changes in operating assets and liabilities:    
Accounts receivable 63,388 (167,481)
Inventories 51,593 (2,372)
Prepaid expenses and other assets (177,066) 141,214
Accounts payable 838,278 16,390
Accrued employee compensation (63,434) 3,702
Operating lease liability (43,435)
Deferred revenue and other accrued expenses (9,109) 606,454
Net cash used in operating activities (5,019,345) (3,615,582)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (28,915)
Net cash used in investing activities (28,915)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from revolving note payable 460,000
Net proceeds from Series AA Convertible Preferred Stock 3,185,100 1,255,463
Net proceeds from convertible debt 4,601,300 3,848,484
Net proceeds from non-convertible debt - third party 2,956,750 1,595,901
Net proceeds from non-convertible debt - related party 239,000 116,100
Payments on convertible debt (3,705,485) (2,097,750)
Payments on non-convertible debt (2,021,159) (1,579,130)
Payments on non-convertible debt - related party (175,000) (58,600)
Net cash provided by financing activities 5,080,506 3,540,468
NET INCREASE (DECREASE) IN CASH 32,246 (75,114)
CASH AT BEGINNING OF YEAR 103,118 81,033
CASH AT END OF PERIOD 135,364 5,919
SUPPLEMENTAL INFORMATION    
Interest paid in cash 2,571,231 856,562
NON CASH TRANSACTIONS:    
Loan extension fees added to principal 77,500
Common stock issued for conversion of debt and accrued interest 342,250
Common stock issued in lieu of cash for dividend 190,123
Common stock issued in lieu of cash for interest 201,432
Common stock issued for services to be rendered 173,520
Common stock issued with debt 226,133 222,272
Discount from warrants issued with convertible debt 162,023
Discount from one-time interest 169,500
Preferred stock dividends 1,268,593 373,318
Conversion of debt into preferred stock 12,688,634
Conversion of preferred stock into common stock 160
Contingent beneficial conversion feature on convertible note 451,665 253,000
Deemed dividend-triggered down round feature 213,012
Deemed dividend-beneficial conversion feature $ 2,625,710 $ 11,678,571