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, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (6,584,378) $ (29,705,669)
Adjustments to reconcile net loss to cash flows used in operating activities:    
Depreciation and amortization 7,353 33,888
Bad debt expense 24,750 25,750
Non cash interest 9,363,244
Amortization of debt discount 1,530,470 1,461,054
Impairment of licensing agreement 250,000
Stock based compensation 2,807,157 830,788
Common stock issued with loan extension 12,000
Gain on settlement of debt (847) (296,592)
Change in fair value of derivative liabilities 15,962,822
Changes in operating assets and liabilities:    
Accounts receivable (2,800) (55,700)
Prepaid expenses and other current assets (18,248) (4,810)
Security deposit 4,212
Accounts payable and accrued expenses 385,616 548,189
Settlement payable (15,000) (300,000)
Deferred revenue (221,696) (407,571)
Net cash used in operating activities (1,825,623) (2,540,395)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of patent (15,200)
Purchase of intellectual property (10,000)
Purchase of equipment (30,747) (2,970)
Net cash used in investing activities (55,947) (2,970)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from sale of common stock 1,400,000 940,000
Proceeds from notes payable 750,000
Proceeds from convertible notes payable 1,660,000
Repayments of notes payable (187,748)
Net cash provided by financing activities 2,150,000 2,412,252
Net increase (decrease) in cash and restricted cash 268,430 (131,113)
Cash, beginning of the period 11,342 142,455
Cash and restricted cash, end of period 279,772 11,342
Supplemental disclosures of cash flow information:    
Interest paid 10,507
Taxes paid
Non cash financing activities:    
Reclassify fair value of debt derivative at note modification 30,806,073
Common stock issued in connection with issuance of notes payable 61,750 220,000
Common stock issued to acquire intellectual property 226,000
Fair value of warrants issued in connection with notes payable 58,411
Reclassify fair value of warrant liability upon adoption of ASU 2017-11 175,975
Common stock issued to settle outstanding accounts payable $ 29,653