Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Operating activities:    
Net loss $ (1,869,757) $ (5,906,987)
Adjustments to reconcile net loss to cash used in operating activities:    
Depreciation and amortization expense 324,734 7,381
Fair value of equity issued for services 5,460 254,946
Stock based compensation 1,000,090
Loss (gain) on extinguishment of debt (258,345) (2,233,656)
Amortization of note discount and original issue discount 1,930,223 895,322
Amortization of discount on Series C Preferred stock liability 32,192
Non-cash interest expense 134,952 1,994,526
Non-cash value of warrant issued for services 380,750
Change in fair value of derivative liability (2,461,179) 2,400,778
Changes in assets and liabilities:    
Accounts receivable (10,073)
Prepaid expenses and other current assets 76,321
Accounts payable and accrued expenses 458,682 163,440
Net cash used in operating activities (1,332,361) (1,347,839)
Investing activities:    
Acquisition of property and equipment (8,969)
Net cash used in investing activities (8,969)
Financing activities:    
Proceeds from the issuance of notes payable 825,000 878,500
Proceeds from related party short-term advances 65,000 12,650
Repayments on related parties short term advances (87,000) (11,500)
Proceeds from issuance of common stock and units 60,000 472,749
Payment against long term loan (4,221) (6,151)
Payment against notes payable (12,500) (30,000)
Proceeds from issuance of redeemable shares 337,500
Proceeds from issuance of preferred stock 135,000
Net cash provided by financing activities 1,318,779 1,316,248
Net decrease in cash (22,551) (31,591)
Cash, beginning of year 90,173 55,533
Cash, end of period 67,622 23,942
Supplemental disclosure of cash flow information:    
Cash paid for interest 70,220 8,711
Cash paid for income taxes
Non Cash Investing and Financing Activities:    
Conversion of notes payable and accrued interest to common stock 824,053 761,810
Reduction in note payable and accrued interest as result of settlement 82,000
Common stock issued on settlement of debt 185,945
Notes payable and accrued interest exchanged for common stock units $ 66,367