Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,933,768) $ (3,430,160)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 15,489 18,279
Accretion of interest and amortization of debt discount 2,848,058 2,367,381
Penalty interest added to debt principal 41,200
Gain on settlement of debt (5,044)
Stock-based compensation expense 282,811 185,370
Amortization of third party fees paid in common stock and warrants 332,700 173,538
Gain on extinguishment of embedded derivative liabilities (2,028,324)
Change in fair value of derivative liabilities 412,500 (38,968)
Changes in operating assets and liabilities:    
Accounts receivable (476,426) (90,800)
Inventories 30,233 41,709
Prepaid expenses and other assets 33,948 123,808
Accounts payable (409,175) (200,969)
Accrued employee compensation 9,900 48,606
Deferred revenue and other accrued expenses 80,058 150,581
Net cash used in operating activities (2,737,516) (2,679,949)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property plant and equipment (3,273) (6,662)
Net cash used in investing activities (3,273) (6,662)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party convertible debt 96,667 6,300
Payments on related party debt (12,300)
Net proceeds from convertible debt 2,102,382 3,991,437
Payments on convertible debt (2,107,065)
Net proceeds from non-convertible debt 865,152 1,300,000
Payments on non-convertible debt (781,221) (537,641)
Net proceeds from the issuance of common stock 382,965
Payment of prepayment penalty (351,193)
Net cash provided by financing activities 2,665,945 2,289,538
NET DECREASE IN CASH (74,844) (397,073)
CASH AT BEGINNING OF YEAR 116,783 473,948
CASH AT END OF PERIOD 41,939 76,875
SUPPLEMENTAL INFORMATION    
Interest paid in cash 1,154 239,389
Income taxes paid in cash
NON CASH TRANSACTIONS:    
Convertible debt exchanged for common stock 117,837 338,000
Cashless exercise of warrants 11,100
Discount due to beneficial conversion feature 20,721
Discount due to warrants issued with debt 39,755
Common stock issued with debt 104,731
Common stock issued to settle non-convertible debt 41,200
Conversion of preferred stock into common stock 63,904
Extension fees added to principal 84,000
Issuance of common stock for investment in available-for-sale equity securities 399,547
Accrued dividends on preferred stock 21,768
Unrealized loss from available-for-sale equity securities 234,972 76,687
Debt discount from derivative liability 1,304,049 5,085,536
Prepayment penalty and accrued interest enrolled into debt principal $ 48,950