Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (2,718,205) $ (1,497,723)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 23,127 71,270
Restricted shares issued for outside services 209,600 68,667
Restricted shares issued for employee services 117,000
Amortization of stock option grants and restricted stock unit grants 236,149 665,680
Amortization of prepaid expenses via common stock 232,821
Change in fair value of derivative liabilities (808,011)
Change in fair value of convertible bridge notes 1,254,379
Amortization of preferred stock discount 125,154 137,585
Amortization of debt issuance costs 3,750 42,758
Paid-in-kind interest - convertible bridge notes 184,963
(Gain) loss on extinguishment of liabilities (456,720) 31,696
Changes in operating assets and liabilities    
Decrease in prepaid expenses 2,920 15,580
(Decrease) increase in accounts payable and accrued expenses (72,274) 355,839
Increase in deferred revenue and license deposits 50,000
Net cash used in operating activities (1,207,157) (516,838)
CASH FLOWS FROM INVESTING ACTIVITIES    
Expenditures for property and equipment (4,013)
Net cash used in investing activities (4,013)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment of capitalized leases (600) (8,140)
Proceeds from notes payable, net of issuance costs 173,709
Proceeds from notes payable - related parties, net of issuance costs 18,100 100,100
Repayments of notes payable (150,000)
Proceeds from convertible bridge notes, net of issuance costs 1,635,000
Proceeds from sale of redeemable preferred stock and common stock warrant 100,000
Proceeds from sales of common stock 157,500
Net cash provided by financing activities 1,502,500 523,169
NET INCREASE IN CASH 295,343 2,318
CASH - Beginning of period 3,330 1,012
CASH - End of period 298,673 3,330
SUPPLEMENTAL CASH FLOW DISCLOSURE:    
Payment of interest in cash 60,309 20,458
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 31,890 35,918
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 for treasury shares - Cyclone $ 150,000