Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

v3.5.0.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,602,348) $ (3,973,894)
Adjustments to reconcile net loss to cash flows used in operating activities:    
Depreciation and amortization 1,368 67,289
Bad debt expense 8,750 37,622
Loss on settlement of sub-licenses 118,027
Termination of licensing agreement 132,804 3,639,694
Non cash interest 21,722 86,320
Amortization of debt discount 286,627 14,408
Stock Based Compensation 101,217 137,518
Change in fair value of option modifications 53,858
Change in fair value of derivative liabilities 467,041 (104,168)
Changes in operating assets and liabilities:    
Accounts receivable (15,500) (88,661)
Prepaid expenses and other current assets (5,233) (3,930)
Accounts payable and accrued expenses (245,265) 201,856
Settlement payable (165,000)
Deferred revenue (215,826) (361,930)
Net cash used in operating activities (1,010,785) (394,849)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of equipment (14,124)
Payment of long term deposit (17,634)
Payment for intellectual property (55,648)
Net cash used in investing activities (87,406)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable
Proceeds from convertible notes payable 2,264,448 75,000
Proceeds from advances 400,000
Repayments of notes payable (211,500) (5,419)
Net cash provided by financing activities 2,052,948 469,581
Net increase in cash 954,757 74,732
Cash, beginning of the period 220,060 53,120
Cash, end of period 1,174,817 127,852
Supplemental disclosures of cash flow information:    
Interest paid 2,418
Taxes paid
Non-cash financing activities:    
Reclassify fair value of debt derivative at payoff of note payable 262,271
Note payable issued in settlement of sub-licensing fees 900,000
Note payable and common stock issuable to acquire intellectual property $ 1,132,000