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 ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (528,585) $ (203,174)
Adjustments to reconcile net loss to cash flows (used in) provided by operating activities:    
Depreciation and amortization 573 $ 33,566
Bad debt expense 2,750
Termination of licensing agreement 132,804
Non cash interest 21,722 $ 71,354
Amortization of debt discount 122,256 4,624
Stock Based Compensation 64,006 41,695
Change in fair value of derivative liabilities 28,697 95,656
Changes in operating assets and liabilities:    
Accounts receivable (16,000) 828
Prepaid expenses and other current assets (1,840) (1,385)
Accounts payable and accrued expenses $ 5,473 15,487
Settlement payable (55,000)
Deferred revenue $ (107,913) (179,965)
Net cash used in operating activities (276,057) $ (176,314)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment of long term deposit (17,634)
Payment for intellectual property (55,648)
Net cash used in investing activities (73,282)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 300,000
Proceeds from convertible notes payable $ 74,448 $ 50,000
Proceeds from advances 100,000
Repayments of notes payable $ (123,500) (5,419)
Net cash provided by financing activities 250,948 144,581
Net decrease in cash (98,391) (31,733)
Cash, beginning of the period 220,060 53,120
Cash, end of period 121,669 21,387
Supplemental disclosures of cash flow information:    
Interest paid $ 7,418 $ 21,493
Taxes paid
Non-cash financing activities:    
Reclassify fair value of debt derivative at payoff of note payable $ 173,787 $ 800,987