Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (1,497,723) $ (3,536,021)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 71,270 84,251
Restricted shares issued for outside services 68,667 376,226
Restricted shares issued for employee services 117,000 111,397
Amortization of stock option grants and restricted stock unit grants 665,680 517,039
Amortization of prepaid expenses via common stock 232,821 229,459
Change in fair value of derivative liabilities (808,011) 131,530
Amortization of preferred stock discount 137,585 13,492
Amortization of debt issuance costs 42,758
Loss on extinguishment of payables 31,696
Changes in operating assets and liabilities    
Decrease (increase) in prepaid expenses 15,580 (16,121)
Increase in accounts payable & accrued expenses 355,839 197,931
Increase in deferred revenue and license deposits 50,000
Net cash used in operating activities (516,838) (1,890,817)
CASH FLOWS FROM INVESTING ACTIVITIES    
Expenditures for software, property and equipment (4,013) (88,846)
Net cash used in investing activities (4,013) (88,846)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment of capitalized leases (8,140) (12,637)
Proceeds from note payable net of issuance costs 173,709
Proceeds from note payable - related party, net of issuance costs 100,100
Proceeds from notes payable - related parties 70,000
Repayments from loans payable - related parties (70,000)
Proceeds from sales of common stock, net of amounts deposited in escrow and direct offering costs 855,568
Receipt of restricted cash previously held in escrow 10,010
Proceeds from sale of redeemable preferred stock and common stock warrants 100,000 500,000
Proceeds from sales of common stock 157,500 362,360
Net cash provided by financing activities 523,169 1,715,301
NET CHANGE IN CASH 2,318 (264,362)
CASH - Beginning of year 1,012 265,374
CASH - End of year 3,330 1,012
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Payment of interest in cash 20,458 6,199
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 35,918 4,027
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
Merger of Q2Power Corp with Q2Power Technologies, Inc. 718,839
Payment and retirement of common stock received pursuant to sale of ESI subsidiary 617,106
Issuance of 64,338 shares of common stock for subscription receivable 3,787
Conversion of debt assumed in merger to 225,000 shares of common stock 27,874
Retirement of restricted shares in settlement of notes and subscription receivables from related parties 104,900
Conversion of accounts payable and accrued expenses to commont stock in Rights Offering $ 196,409