Transition report pursuant to Rule 13a-10 or 15d-10

CONSOLIDATED STATEMENT OF CASH FLOWS

v3.3.1.900
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (3,536,021) $ (1,612,093)
Adjustments to reconcile net loss to net cash used by operations:    
Depreication and amortization 84,251 22,547
Restricted shares issued for outside services 376,226 265,075
Restricted shares issued for employee services 111,397 27,000
Amortization of stock option grants 517,039 33,667
Amortiation of prepaid expenses via common stock 229,459 $ 175,000
Change in fair value of derivative liabilities 131,530
Amortization of preferred stock discount $ 13,492
Changes in operating assets and liabilities    
Decrease in due to related party - Cyclone $ 59,691
Decrease in prepaid expenses $ (16,121) 49,192
Increase in accounts payable & accrued expenses 219,787 207,771
Net cash used in operating activities (1,868,962) (772,150)
CASH FLOWS FROM INVESTING ACTIVITIES    
Expenditures for property and equipment $ (88,846) (32,036)
Expenditures for licensing rights in Cyclone (175,000)
Payables of Cyclone paid in separation (78,489)
Net cash provided by investing activities $ (88,846) (285,525)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment of capitalized leases $ (12,637) (2,308)
Proceeds from note payable $ 299,000
Proceeds from loans payable - related parties $ 70,000
Repayments from loans payable - related parties (70,000)
Proceeds from sale of common stock, net of amounts depositied in escrow and direct offering costs $ 855,568 $ 1,376,357
Repurchase and retirement of common stock - Cyclone $ (350,000)
Receipt of restricted cash previously held in escrow $ 10,010
Proceeds from sale of redeemable preferred stock and common stock warrant 500,000
Proceeds from sales of common stock 362,360
Net cash provided by financing activities 1,715,300 $ 1,323,049
NET INCREASE (DECREASE) IN CASH (242,508) $ 265,374
CASH - Beginning of period 265,374
CASH - End of period 1,012 $ 265,374
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Interest paid 6,199 $ 6,199
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Merger of Q2Power Corp with Q2Power Technologies, Inc. 718,839
Payment & 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 common stock in Rights Offering 196,409
Accrual of contractual dividends on Series A convertible preferred stock $ 4,027
Restricted cash held in escrow by attorney from sale of common stock $ 10,010
Equipment purchased under capital lease 24,671
Conversion of membership interest in Cyclone-WHE, LLC to restricted shares of WHE Generation Corp. 840,000
Conversion of prepaid expenses with membership interest to prepaid expense with common stock 277,084
Return of 212,500 restricted shares of common stock for contingent liability - Cyclone 150,000
Seperation with Cyclone 567,637
Issuance of 408,000 restricted shares of common stock for cashless warrant exercise 100,000
Conversion of debt and interest to 1,001,584 restricted shares of common stock $ 353,501