Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Operating activities:    
Net loss $ (7,817,953) $ (12,579,091)
Adjustments to reconcile net loss to cash used in operating activities:    
Depreciation and amortization expense 487,474 11,070
Fair value of shares issued for services 130,235 1,410,071
Gain on extinguishment of debt (308,151) (2,175,459)
Amortization of note discount and original issue discount 2,647,939 1,467,888
Amortization of discount on Series C Preferred stock liability 61,912
Non-cash interest expense 623,917 2,465,912
Non-cash value of warrant and stock options issued for services 382,473
Change in fair value of derivative liability 970,760 6,945,434
Changes in assets and liabilities:    
Accounts receivable (2,650)
Prepaid expenses and other current assets 156,321
Accounts payable and accrued expenses 661,305 108,658
Net cash used in operating activities (2,162,739) (2,189,196)
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 2,336,000 1,562,000
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 preferred stock 135,000 5
Proceeds from issuance of common stock and units 60,000 740,250
Payment against long term loan (4,221) (9,263)
Payment against notes payable (375,500) (96,000)
Proceeds from issuance of redeemable shares 617,500
Net cash provided by financing activities 2,746,779 2,198,142
Net increase in cash 575,071 8,946
Cash, beginning of year 90,173 55,533
Cash, end of period 665,244 64,479
Supplemental disclosure of cash flow information:    
Cash paid for interest 122,445 27,022
Cash paid for Preferred C dividends 37,950
Cash paid for income taxes
Non Cash Investing and Financing Activities:    
Conversion of notes payable and accrued interest to common stock 1,237,256 1,108,321
Reduction in note payable and accrued interest as result of settlement 82,000
Common stock issued on settlement of debt 289,675
Notes payable and accrued interest exchanged for common stock units 66,367
Value of stock options granted in satisfaction of deferred compensation $ 1,467,311