Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (29,705,669) $ (5,903,982)
Adjustments to reconcile net loss to cash flows used in operating activities:    
Depreciation and amortization 33,888 30,248
Bad debt expense 25,750 59,750
Termination of licensing agreement 132,804
Non cash interest 9,363,244 66,874
Amortization of debt discount 1,461,054 748,840
Common stock issued in connection with loan extension 17,970
Stock based compensation 830,788 582,348
Gain on settlement of debt (296,592)
Change in fair value of option modifications 53,858
Change in fair value of derivative liabilities 15,962,822 2,673,948
Changes in operating assets and liabilities:    
Accounts receivable (55,700) (32,000)
Prepaid expenses and other current assets (4,810) (5,996)
Security deposit 4,212 (12,300)
Accounts payable and accrued expenses 548,189 (42,740)
Settlement payable (300,000) 65,000
Deferred revenue (407,571) (434,022)
Net cash used in operating activities (2,540,395) (1,999,400)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of equipment (2,970) (22,594)
Payment for intellectual property (305,647)
Net cash used in investing activities (2,970) (328,241)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from sale of common stock 940,000 100,000
Proceeds from convertible notes payable 1,660,000 2,714,448
Repayments of notes payable (187,748) (564,412)
Net cash provided by financing activities 2,412,252 2,250,036
Net decrease in cash and restricted cash (131,113) (77,605)
Cash and restricted cash, beginning of the year 142,455 220,060
Cash and restricted cash, end of year 11,342 142,455
Supplemental disclosures of cash flow information:    
Interest paid 10,507 106,333
Taxes paid
Non cash financing activities:    
Reclassify fair value of debt derivative at payoff of note payable 262,271
Common stock issued in settlement of related party accounts payable 80,433
Common stock issued in connection with issuance of convertible notes payable 30,000
Reclassify fair value of debt derivative at note modification 30,806,073
Common stock issued in settlement of convertible notes payable $ 220,000