Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (4,671,365) $ (1,120,482)
Adjustments to reconcile net loss to cash flows (used in) provided by operating activities:    
Depreciation and amortization 96,197 $ 101,750
Bad debt expense 85,122
Loss on settlement of sub-licenses 118,027
Termination of licensing agreement 3,639,694
Non cash interest 134,554
Amortization of debt discount 84,886 $ 211,826
Stock Based Compensation 396,971 225,764
Change in fair value of derivative liabilities (77,765) (237,697)
Changes in operating assets and liabilities:    
Accounts receivable (50,522) (38,629)
Prepaid expenses and other current assets (2,475) (23,829)
Accounts payable and accrued expenses 389,617 59,384
Settlement payable (240,000) 220,000
Deferred revenue (407,473) 703,805
Net cash (used in) provided by operating activities $ (504,532) 101,892
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment of acquisition deposit (32,404)
Purchase of equipment (486)
Net cash used in investing activities (32,890)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable $ 76,750
Proceeds from notes payable, related party $ 38,000
Proceeds from convertible notes payable 110,000
Proceeds from advances 400,000
Repayments of notes payable $ (87,919) $ (45,464)
Repayments of advances from lenders   (95,599)
Net Repayments of notes payable, related party (105,236)
Net cash provided by (used in) financing activities $ 460,081 (169,549)
Net decrease in cash (44,451) (100,547)
Cash, beginning of the period 53,120 108,566
Cash, end of period 8,669 8,019
Supplemental disclosures of cash flow information:    
Interest paid $ 2,418 $ 93,360
Taxes paid
Non-cash financing activities:    
Note payable issued in settlement of sub-licensing fees $ 900,000
Note payable and common stock issuable to acquire intellectual property $ 1,132,000
Common stock issued for exercise of options paidby 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