Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (10,715,561) $ (2,706,984)
Adjustments to reconcile net loss to net cash used in operating activities:    
Common stock issued for debt extension 19,500
Depreciation and amortization 8,576 17,939
Provision for bad debts 28,169
Inventory reserve 159,600
Accretion of interest and amortization of debt discount 4,128,637 4,003,485
Incentive warrants for warrant exercises 186,802
Penalty interest added to debt principal 41,200
Gain on settlement of debt (185,452) (5,044)
Stock-based compensation expense 406,427 379,964
Warrants issued for service 15,558 84,735
Shares issued for service 31,000
Amortization of third party fees paid in common stock and warrants 332,696
Impairment loss on investment 6,069 373,682
Change in fair value of derivative liabilities (5,904,649)
Changes in operating assets and liabilities:    
Accounts receivable 74,472 (196,233)
Inventories (111,978) 133,087
Prepaid expenses and other assets 59,312 (44,201)
Accounts payable 182,014 (534,140)
Accrued employee compensation 119,104 73,587
Accrued interest 898,212 346,295
Deferred revenue and other accrued expenses 813,159 (229,439)
Net cash used in operating activities (3,904,549) (3,805,851)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of intangible assets (150,000)
Purchases of property plant and equipment (21,825) (7,203)
Net cash used in investing activities (171,825) (7,203)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Net proceeds from related party debt 116,667
Payment of related party debt (20,000)
Net proceeds from revolving note payable 2,070,000 1,133,500
Net proceeds from convertible debt 1,755,850 2,105,420
Payments on convertible debt (925,541) (107,000)
Net proceeds from non-convertible debt 2,905,752 1,022,784
Payments on non-convertible debt (1,894,231) (947,702)
Net proceeds from warrant exercises 140,214
Payments on prepayment penalty (33,000)
Net proceeds from the issuance of common stock 530,965
Net cash provided by financing activities 4,019,044 3,834,634
NET (DECREASE) INCREASE IN CASH (57,330) 21,580
CASH AT BEGINNING OF YEAR 138,363 116,783
CASH AT END OF Year 81,033 138,363
SUPPLEMENTAL INFORMATION    
Interest paid in cash 533,532 260,979
NON CASH TRANSACTIONS:    
Convertible debt exchanged for common stock 117,837
Cashless exercise of warrants 11,100
Discount due to beneficial conversion feature 20,721
Discount due to warrants issued with debt 714,815 519,485
Common stock issued with debt 368,574 104,731
Common stock issued to purchase intangible assets 600,000
Common stock issued to settle non-convertible debt 41,200
Common stock issued in lieu of cash for interest 264,602
Common stock issued for prepaid services 15,992
Conversion of preferred stock and accrued dividends into common stock 61 63,902
Discount from derivative liability 1,304,049
Discount from one-time interest 225,000 170,000
Reclassification of derivative liabilities to equity and cumulative effect of adoption of ASU 2017-11 1,712,699
Reversal of accumulated other comprehensive income to impairment loss on investment $ 105,025