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 ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) $ (3,973,894) $ (736,603)
Adjustments to reconcile net (loss) to cash flows (used in) provided by operating activities:    
Depreciation and amortization 67,289 $ 67,947
Bad debt expense 37,622  
Loss on settlement of sub-licenses 118,027  
Termination of licensing agreement 3,639,694  
Non cash interest 86,320  
Amortization of debt discount 14,408 $ 124,076
Stock Based Compensation 137,518 138,194
Change in fair value of derivative liabilities (104,168) (304,950)
Changes in operating assets and liabilities:    
Accounts receivable (88,661) (4,534)
Prepaid expenses and other current assets (3,930) 7,431
Accounts payable and accrued expenses 201,856 (76,420)
Settlement payable (165,000) 275,000
Deferred revenue (361,930) 897,210
Net cash (used in) provided by operating activities $ (394,849) 387,351
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment of acquisition deposit   (32,404)
Purchase of equipment   (486)
Net cash used in investing activities   (32,890)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable   $ 76,750
Proceeds from convertible notes payable $ 75,000  
Proceeds from advances 400,000  
Repayments of notes payable $ (5,419) $ (35,000)
Repayments of advances from lenders   (95,599)
Net Repayments of notes payable, related party   (88,236)
Net cash (used in) provided by financing activities $ 469,581 (142,085)
Net increase in cash 74,732 212,376
Cash, beginning of the period 53,120 108,566
Cash, end of period 127,852 320,942
Supplemental disclosures of cash flow information:    
Interest paid $ 2,418 $ 77,369
Taxes paid    
Non-cash financing activities:    
Note payable issued in settlement of sub-licensing fees $ 900,000  
Note payable and common stock issuable to acquire intellectual property $ 1,132,000  
Common stock issued for exercise of options paid by amounts due to the option holders of the Company   $ 127,500
Fair value of warrants issued for licensing fees   24,558
Common stock issued for licensing fees   89,500
Convertible notes payable and accrued interest exchanged for licensing rights   $ 609,368