Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

v3.7.0.1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,183,231) $ (2,649,008)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 59,839 59,413
Restricted shares issued for outside services 47,667 344,544
Restricted shares issued for employee services 117,000 100,089
Amortization of stock option and restricted stock unit grants 415,746 190,499
Amortization of prepaid expenses via common stock 189,487 229,459
Loss on extinguishment of payables 31,696
Amortization of debt issuance costs 40,251
Change in fair value of derivative liabilities (724,415)
Amortization of preferred stock discount 102,923
Changes in operating assets and liabilities    
Decrease in prepaid expenses 18,914
Increase in other current asset (2,549)
Increase in accounts payable and accrued expenses 325,674 325,911
Increase in deferred revenue and license deposits 50,000
Net cash used in operating activities (508,449) (1,401,643)
CASH FLOWS FROM INVESTINGING ACTIVITIES    
Expenditures for property and equipment (4,013) (88,846)
Net cash used in investing activities (4,013) (88,846)
CASH FLOWS FROM FINANCING ACTIVITIES    
Bank overdraft 1,328
Payment of capitalized leases (8,140) (9,099)
Proceeds from note payable net of issuance costs 173,709
Proceeds from note payable - related party, net of issuance costs 88,700 10,000
Receipt of restricted cash previously held in escrow 10,010
Proceeds from sale of common stock 157,500
Proceeds from sale of redeemable preferred stock and common stock warrants 100,000
Proceeds from sales of common stock, Series A funding 362,360
Proceeds from sale of comm stock, Rights Offering, net of direct offering costs 850,516
Net cash provided by financing activities 511,769 1,225,115
NET CHANGE IN CASH (693) (265,374)
CASH - Beginning of period 1,012 265,374
CASH - End of period 319
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion of debentures to 1,289,285 shares of common stock 270,750
Reclassification of derivative liabilities to additional paid in capital at conversion of debentures 125,975
Accrual of contractual dividends on Series A convertible preferred stock 26,844
Issuance of 100,000 shares of common stock for note payable issuance costs 26,000
Settlement of accounts payable to 187,919 shares of common stock 49,859
Settlement of accounts payable with software, property and equipment and 50,000 shares of stock 49,299
Settlement of related party obligation - Cyclone 150,000
Issuance of 941,900 shares of common stock for subscriptions receivable 18,838
Retirement of restricted shares in settlement of notes and subscription receivables 104,900
Conversion of accounts payable and accrued expenses to common stock in Rights Offering $ 186,409