Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.3.1.900
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (4,665,990) $ (3,127,780)
Adjustments to reconcile net loss to cash flows provided by (used in) operating activities:    
Depreciation and amortization 125,070 135,491
Bad debt expense 125,522 $ 274,698
Net gain on settlement of sub-licenses (731,973)
Termination of licensing agreement 3,639,694
Non cash interest 170,042
Amortization of debt discount 111,439 $ 212,399
Stock Based Compensation 802,920 1,989,191
Change in fair value of derivative liabilities (97,008) (277,594)
Changes in operating assets and liabilities:    
Accounts receivable (49,772) 5,381
Prepaid expenses and other current assets (1,020) 576
Accounts payable and accrued expenses 480,702 208,326
Settlement payable (295,000) 220,000
Deferred revenue 433,233 526,981
Net cash provided by operating activities $ 47,859 167,669
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment of acquisition deposit (32,404)
Purchase of equipment (487)
Net cash used in investing activities (32,891)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable $ 76,750
Proceeds from notes payable, related party $ 54,500
Proceeds from convertible notes payable $ 180,500
Proceeds from exercise of options $ 5,000
Repayments of notes payable $ (87,919) (45,079)
Repayments of advances from lenders   (95,599)
Net Repayments of notes payable, related party (28,000) (131,296)
Net cash provided by (used in) financing activities 119,081 (190,224)
Net increase (decrease) in cash 166,940 (55,446)
Cash, beginning of the period 53,120 108,566
Cash, end of period 220,060 53,120
Supplemental disclosures of cash flow information:    
Interest paid $ 7,418 $ 21,493
Taxes paid
Non-cash financing activities:    
Note payable issued in settlement of sub-licensing fees $ 900,000
Note payable and common stock issued or issuable to acquire intellectual property 1,132,000
Deposits applied as payment on note payable $ 57,404
Common stock issued for exercise of options paid by amounts due to the option holders of the Company $ 172,500
Fair value of warrants issued for licensing fees 24,558
Common stock issued for licensing fees 89,500
Convertible notes payable and accrued interest exchanged for licensing rights 609,368
Reclassify fair value of debt derivative at payoff of note payable $ 158,959 $ 800,987