Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statement of Cash Flows (Unaudited)

v3.8.0.1
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,437,777) $ (1,183,231)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 23,060 59,839
Restricted shares issued for outside services 209,600 47,667
Restricted shares issued for employee services 117,000
Amortization of stock option and restricted stock unit grants 248,187 415,746
Amortization of prepaid expenses via common stock 189,487
Change in fair value of derivative liabilities (724,415)
Change in fair value of convertible bridge notes 419,484
Amortization of debt issuance costs 2,500 40,251
Amortization of preferred stock discount 103,984 102,923
(Gain) loss on extinguishment of liabilities (456,720) 31,696
Changes in operating assets and liabilities    
Increase in prepaid expenses and other current assets 8,753 18,914
Increase (decrease) in accounts payable and accrued expenses (5,361) 325,674
Increase in deferred revenue and license deposits 50,000
Net cash used in operating activities (884,290) (508,449)
CASH FLOWS FROM INVESTING ACTIVITIES    
Expenditures for property and equipment (4,013)
Note receivable from ETS (100,000)
Net cash used in financing activities (100,000) (4,013)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment of capitalized leases (600) (8,140)
Proceeds from note payable net of issuance costs 173,709
Proceeds from notes payable - related party 18,100 88,700
Proceeds from sale of common stock 157,500
Proceeds from sale of redeemable preferred stock and common stock warrant 100,000
Proceeds from convertible bridge notes, net of issuance costs 1,635,000
Net cash provided by financing activities 1,652,500 511,769
NET CHANGE IN CASH 668,210 (693)
CASH - Beginning of period 3,330 1,012
CASH - End of period 671,540 319
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Payment of interest in cash 45,646
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Forgiveness of deferred salary by officer 112,797
Conversion of payables, accrued interest, notes payable and notes payable - related parties to debentures 191,908
Settlement of accounts payable and accrued expenses to 1,738,195 shares of common stock 260,679
Reclassification of derivative liabilities to equity upon adoption of ASU 2017-11 213,042
Settlement of accounts payable with property, equipment and licensing rights in Cyclone 147,500
Accrual of contractual dividends on Series A convertible preferred stock 26,926 26,844
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
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