Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statement of Cash Flows (Unaudited)

v3.7.0.1
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ 186,023 $ (1,206,788)
Adjustments to reconcile net income (loss) to net cash used by operations:    
Depreciation and amortization 11,421 24,204
Restricted shares issued for outside services 21,667
Restricted shares issued for employee services 117,000
Amortization of stock option and restricted stock unit grants 34,608 45,221
Amortization of prepaid expenses via common stock 53,024
Change in fair value of derivative liabilities (66,477) 552,834
Amortization of debt issuance costs 3,605
Amortization of preferred stock discount 34,661 33,600
Gain on extinguishment of liabilities (306,262)
Changes in operating assets and liabilities    
Decrease in prepaid expenses 3,772 16,989
Increase in accounts payable and accrued expenses 83,297 61,495
Increase in deferred revenue and license deposits 50,000
Net cash used in operating activities (18,957) (227,149)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment of capitalized leases (600) (2,903)
Proceeds from note payable net of issuance costs 147,000
Proceeds from notes payable - related party 18,100 10,500
Proceeds from sale of redeemable preferred stock and common stock warrant 100,000
Proceeds from debentures in Bridge Offering 1,000,000
Net cash provided by financing activities 1,017,500 254,597
NET INCREASE IN CASH 998,543 27,448
CASH - Beginning of period 3,330 1,012
CASH - End of period 1,001,873 28,460
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Payment of interest in cash 2,738
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Restricted cash held in escrow by attorney from Bridge Offering 50,000
Conversion of payables, accrued interest, notes payable and notes payable - related parties to debentures 168,152
Conversion of debentures to 340,476 shares of common stock 71,500
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 9,074 8,795
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