Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash Flows from Operating Activities    
Net loss $ (3,474,238) $ (11,376,070)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 12,892 4,137
Amortization of intangibles 0 189,522
Amortization of debt discount 31,772 246,086
Debt conversion expense 355,985 68,694
Impairment loss 0 1,584,048
Goodwill impairment loss 0 6,455,645
Stock based compensation 500,408 332,639
Straight-line rent adjustment 0 592
Non-cash investor relations fees 0 48,000
Non-cash directors fees 0 10,000
Adjustment of fair value of warrant modification 0 25,720
Changes in operating assets and liabilities, net of effects of acquisition:    
Accounts receivable 0 33,045
Prepaid expenses 228,116 42,075
Inventory (55,978) 0
Accounts payable (123,628) (96,962)
Interest payable 0 (3,670)
Accrued liabilities (129,800) 64,116
Net Cash Used in Operating Activities (2,654,471) (2,372,383)
Cash Flows from Investing Activities    
Expenditures for property and equipment (10,461) (5,265)
Net Cash Used in Investing Activities (10,461) (5,265)
Cash Flows from Financing Activities    
Principal payments under note payable obligation (97,016) (80,654)
Proceeds from issuance of preferred and common stock, net of offering costs 1,816,045 969,191
Proceeds from issuance of warrants, net of offering costs 802,017 207,079
Net Cash Provided by Financing Activities 2,521,046 1,095,616
Net (Decrease) in Cash (143,886) (1,282,032)
Cash - Beginning of period 892,814 1,570,167
Cash - End of period 748,928 288,135
Supplementary Cash Flow Information    
Cash paid for interest 4,476 5,359
Non-cash investing and financing activities    
Financing agreement for insurance policy 66,895 0
Conversion of note and accrued interest to common stock 718,079 1,072,513
Conversion of short-term loan to common stock 126,720 0
Issuance of common stock for consideration of cancellation of warrants 208,000 0
Issuance of warrants for conversion of notes 305,201 0
Issuance of common stock for investor relations services 0 48,000
Common stock issued for board fees 239,826 0
Issuance of common stock for preferred stock conversion 931 0
Issuance of common stock warrants for placement agent fees 304,183 0
Repayment of due from stockholder through forgone director fees $ 0 $ 10,000