Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.19.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Operating activities:    
Net loss $ (6,435,839) $ (10,810,160)
Adjustments to reconcile net loss to cash used in operating activities:    
Depreciation and amortization expense 650,216 14,761
Fair value of equity issued for services 627,704 1,414,823
Amortization of discount on Series C Preferred stock liability 96,635
Non-cash interest and fees 759,949 3,400,511
Amortization of note discount and original issue discount 3,464,096 2,165,710
Change in fair value of derivative liability (2,603,983) 2,982,543
(Gain) loss on extinguishment of debt (316,560) (2,485,277)
Gain on settlement of debt (80,294)
Changes in assets and liabilities:    
Accounts receivable (3,345)
Prepaid expenses and other current assets 21,000 263,321
Accounts payable 63,232 (112,422)
Accrued interest 623,885 305,851
Deferred compensation 174,175 (49,137)
Net cash used in operating activities (2,878,834) (2,989,770)
Investing activities:    
Acquisition of property and equipment (8,969)
Acquisition of patents (3,000,000)
Net cash used in investing activities (8,969) (3,000,000)
Financing activities:    
Proceeds from the issuance of notes payable 2,836,000 4,047,000
Proceeds from issuance of notes payable- related party 100,000
Proceeds from short term advances 65,000 26,000
Proceeds from exercise of warrants 5,050
Proceeds from issuance of preferred stock 135,002 700,005
Repayments on short term advances (87,000) (11,500)
Proceeds from issuance of common stock 85,000 1,290,250
Payment on notes payable (555,500) (120,000)
Proceeds from issuance of redeemable shares 702,500
Payment against long term loan (4,221) (12,395)
Net cash provided by financing activities 3,176,781 6,024,410
Net increase in cash 288,978 34,640
Cash, beginning of year 90,173 55,533
Cash, end of year 379,151 90,173
Supplemental disclosure of cash flow information:    
Cash paid for interest 248,730 33,868
Cash paid for income taxes
Non Cash Investing and Financing Activities:    
Conversion of notes payable and accrued interest to common stock 1,852,415 1,582,349
Value of derivative liability from transfer to equity upon conversion of notes payable and accrued interest 1,712,307 8,085,694
Reduction in note payable and accrued interest as result of settlement 82,000
Settlement of liabilities by issuance of common stock 354,964
Conversion of notes payable to redeemable preferred stock 317,691
Notes payable issued on acquisition of patents 1,500,000
Deferred compensation converted to stock options 1,467,311
Accrued interest converted to notes payable $ 39,570