Quarterly report pursuant to Section 13 or 15(d)

Statement of Cash Flows (Unaudited)

v3.5.0.2
Statement of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (787,050) $ (1,362,525)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 35,432 35,578
Stock-based compensation 0 241,246
Amortization of discount on debt 261,023 0
Non-cash interest expense 0 204,195
Provision for inventory obsolescence 0 26,062
Change in fair value of warrant liability 0 (19,600)
Change in fair value of derivative liabilities 0 (22,317)
Issuance of common stock for consulting services 0 13,682
Changes in operating assets and liabilities:    
Accounts receivable (4,662) 0
Inventory 6,900 45,201
Prepaid expenses and other current assets (4,094) (19,256)
Other assets 3,625 0
Accounts payable (52,334) 270,637
Deferred revenue 0 62,610
Accrued expenses (30,682) 143,058
Net cash used in operating activities (571,842) (381,429)
Cash flows from investing activities:    
Net cash used in investing activities 0 0
Cash flows from financing activities:    
Proceeds from issuance of convertible notes payable (net of issuance discounts and fees) 552,000 432,000
Net cash provided by financing activities 552,000 432,000
Net (decrease) increase in cash and cash equivalents (19,842) 50,571
Cash and cash equivalents, beginning of period 40,995 157,278
Cash and cash equivalents, end of period 21,153 207,849
Supplemental disclosure of cash flow information:    
Cash paid during the period for: Interest 0 0
Cash paid during the period for: Income taxes 4,000 5,000
Non-cash financing activities    
Issuance of common stock in exchange for settlement of outstanding payables 350,000 22,179
Warrant liability associated with Typenex Convertible Note 0 146,995
Derivative liabilities associated with convertible notes payable 0 274,331
Beneficial conversion features associated with convertible notes payable $ 442,000 $ 0