Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Operating activities:    
Net Income (Loss) $ 2,703,767 $ (10,243,771) [1]
Adjustments to reconcile net income (loss) to cash used in operating activities:    
Depreciation and amortization expense 325,985 325,053
Stock compensation expense 55,540
Fair value of equity issued for services 13,067 92,396
Loss (gain) on extinguishment of debt 516,783 (52,290) [1]
Amortization of note discount and original issue discount 36,843 1,261,139
Amortization of discount on Series C Preferred stock liability 248 95,429
Non-cash interest expense 550,994 1,077,619
Non-cash value of stock, options and warrants issued for services and notes 47,949
Change in fair value of derivative liability (5,600,255) 5,479,163 [1]
Changes in assets and liabilities:    
Accounts receivable 21,801 (5,081)
Prepaid expenses and other current assets 17,560 (29,944)
Account payable 9,936 123,606
Accrued interest 510,184 513,664
Deferred compensation 385,486 99,212
Net cash used in operating activities (452,061) (1,215,856)
Investing activities:    
Acquisition of property and equipment (1,871)
Net cash used in investing activities (1,871)
Financing activities:    
Proceeds from the issuance of notes payable 401,424 1,495,000
Repayments on related-parties short-term advances (13,000) (40,000)
Repayments of convertible debt in cash (130,000)
Proceeds from issuance of common stock and units 61,106
Proceeds from issuance of preferred stock 50,000
Net cash provided by financing activities 438,424 1,386,106
Net (decrease) increase in cash (13,637) 168,379
Cash, beginning of year 18,893 379,151
Cash, end of period 5,256 547,530
Supplemental disclosure of cash flow information:    
Cash paid for interest 81,127
Cash paid for income taxes
Non-Cash Investing and Financing Activities:    
Conversion of notes payable and accrued interest to common stock 1,311,240 2,387,841
Conversion of fixed rate notes to Preferred C Stock 86,600
Conversion of Preferred C Stock to common stock 1,387,601
Issuance of common stock to Preferred C Stock inducement 8,152
Exchange note and accrued interest to new convertible note $ 316,494
[1] The condensed consolidated financial statements have been retroactively restated to reflect the 1,000-for-1-reverse stock split that occurred on December 20, 2019.