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 ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Operating activities:    
Net Income (Loss) $ 1,634,726 $ (11,649,967) [1]
Adjustments to reconcile net income (loss) to cash used in operating activities:    
Depreciation and amortization expense 488,616 487,684
Stock compensation expense 400,108
Fair value of equity issued for services 13,067 159,849
Loss (gain) on extinguishment of debt 564,385 (63,036) [1]
Amortization of note discount and original issue discount 50,348 1,737,714
Amortization of discount on Series C Preferred stock liability 248 145,836
Non-cash interest expense 713,462 1,077,728
Non-cash value of stock, options and warrants issued for services and notes 25,232
Change in fair value of derivative liability (6,016,625) 4,785,167 [1]
Changes in assets and liabilities:    
Accounts receivable 21,800 (7,931)
Deposit (2,500)
Prepaid expenses and other current assets 18,320 (22,575)
Account payable 82,006 188,792
Accrued interest 766,319 761,185
Deferred compensation 716,986 141,696
Net cash used in operating activities (548,734) (2,232,626)
Investing activities:    
Acquisition of property and equipment (2,594)
Net cash used in investing activities (2,594)
Financing activities:    
Proceeds from the issuance of notes payable 401,424 1,995,000
Repayments on related-parties short-term advances (19,000) (75,000)
Repayments of convertible debt in cash (130,000)
Proceeds from issuance of common stock and units 100,000 71,106
Proceeds from issuance of preferred stock 50,000
Net cash provided by financing activities 532,424 1,861,106
Net decrease in cash (16,310) (374,114)
Cash, beginning of year 18,893 379,151
Cash, end of period 2,583 5,037
Supplemental disclosure of cash flow information:    
Cash paid for interest 15,300
Cash paid for Preferred C dividends 106,167
Cash paid for income taxes
Non-Cash Investing and Financing Activities:    
Conversion of notes payable and accrued interest to common stock 1,357,573 3,018,066
Conversion of fixed rate notes to Preferred C Stock 94,000
Conversion of Preferred C Stock to common stock 1,400,934
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.