Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED BALANCE SHEETS

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CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Current assets:    
Cash $ 92,455 $ 220,060
Accounts receivable, net 2,750
Other accounts receivable 25,000
Prepaid expenses 8,400 64,253
Total current assets 100,855 312,063
Property and equipment, net 22,164 3,900
Other assets:    
Restricted cash 50,000
Prepaid expenses, long term 8,573
Intellectual property, net 279,729 1,075,400
Deposits, long term 17,634 5,334
Total other assets 347,363 1,089,307
Total assets 470,382 1,405,270
Current liabilities:    
Accounts payable and accrued expenses, including related party payables of $195,584 and $731,666, respectively 937,938 1,256,956
Deferred revenue, short term 432,836 635,613
Settlement payable 315,000
Convertible notes payable, short term, net of debt discount 87,033 21,134
Notes payable, net of debt discount, short term portion 172,748 1,461,256
Notes payable, net of debt discount, related party 210,761 269,635
Derivative liability 294,807 110,753
Total current liabilities 2,451,123 3,755,347
Long term debt:    
Deferred revenue, long term 613,428 844,673
Convertible notes payable, long term, net of debt discount 688,783 5,530
Warrant liability 26,903 22,746
Derivative liability 4,820,473 59,778
Total long term debt 6,149,587 932,727
Total liabilities 8,600,710 4,688,074
Commitments and contingencies (Note 17)
Stockholders' deficit:    
Preferred stock, no par value; 600,000 and 80,000 authorized as of December 31, 2016 and 2015, respectively Preferred stock, no par value; 80,000 designated; 80,000 shares issued and outstanding as of December 31, 2016 and 2015 16,000 16,000
Series B Preferred stock, no par value; 160,000 designated; 160,000 and -0- shares issued and outstanding as of December 31, 2016 and 2015 5,616
Common stock, $0.001 par value; 525,000,000 and 200,000,000 shares authorized, 181,804,501 and 164,144,501 shares issued and outstanding as of December 31, 2016 and 2015, respectively 181,805 164,145
Common stock subscribed 100,000 100,000
Additional paid in capital 10,701,116 9,667,934
Accumulated deficit (19,134,865) (13,230,883)
Total stockholders' deficit (8,130,328) (3,282,804)
Total liabilities and stockholders' deficit $ 470,382 $ 1,405,270