Quarterly report pursuant to Section 13 or 15(d)

Statement of Cash Flows (Unaudited)

v3.5.0.2
Statement of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (5,406,978) $ (1,896,407)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 53,093 53,318
Stock-based compensation 225,877 267,223
Loss on extinguishment of debt 0 219,993
Amortization of discount on debt 500,626 0
Non-cash interest expense and derivative costs 526,036 288,931
Stock issuance for financing cost 350,000 0
Provision for inventory obsolescence 0 71,062
Change in fair value of derivative liabilities 2,577,655 (274,331)
Issuance of common stock for consulting services 0 91,180
Changes in operating assets and liabilities:    
Accounts receivable (7,608) 0
Inventory 9,300 (59,215)
Prepaid expenses and other current assets 4,817 (14,227)
Other assets 3,625 0
Accounts payable 180,356 479,267
Deferred revenue 0 62,610
Accrued expenses (30,681) 82,890
Net cash used in operating activities (1,013,882) (627,706)
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 - related party 552,000 1,282,000
Proceeds from issuance of convertible notes payable 1,600,000 0
Payment of deferred finance costs (256,186) 0
Repayment of convertible notes payable 0 (753,333)
Net cash provided by financing activities 1,895,814 528,667
Net (decrease) increase in cash and cash equivalents 881,932 (99,039)
Cash and cash equivalents, beginning of period 40,995 157,278
Cash and cash equivalents, end of period 922,927 58,239
Supplemental disclosure of cash flow information:    
Cash paid during the period for: Interest 0 21,797
Cash paid during the period for: Income taxes 0 0
Non-cash financing activities    
Issuance of common stock in exchange for settlement of outstanding payables 468,889 31,287
Warrant liability associated with Typenex Convertible Note 0 146,995
Derivative liabilities associated with convertible notes payable $ 0 $ 274,331