Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.19.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (9,904,719) $ (8,299,692)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 33,718 38,295
Bad debt expense (recovery) (552) 16,894
Amortization of debt discount to interest expense 40,691 2,917
Stock-based compensation 6,735,124 6,772,752
Stock-based professional fees 118,750
Settlement expense 200,000
Loss on debt extinguishment 380,171
Change in operating assets and liabilities:    
Accounts receivable (55,542) (37,757)
Inventory 1,516 458
Prepaid expenses and other assets (11,243) (771)
Accounts payable 382,067 99,542
Accrued expenses 22,709 79,153
Accrued compensation 89,528 243,701
NET CASH USED IN OPERATING ACTIVITIES (1,967,782) (1,084,508)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash acquired in recapitalization 187,401
Purchases of property and equipment (3,454)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 187,401 (3,454)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from sale of stock 1,267,500 437,500
Proceeds from exercise of stock options 195,000
Proceeds from notes payable 400,000
Repayment of convertible note payable (260,000) (50,000)
Proceeds from convertible note payable 260,000 150,000
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,862,500 537,500
NET INCREASE (DECREASE) IN CASH 82,119 (550,462)
CASH, beginning of year 46,448 596,910
CASH, end of year 128,567 46,448
Cash paid for:    
Interest 6,791 675
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Beneficial conversion feature reflected in debt discount 260,000 10,000
Common stock issued as prepaid for services 18,333
Common stock issued for accrued compensation 392,577
Exercise of stock options for accrued compensation 20,575
Common stock issued for debt and accrued interest 105,833
Common stock issued for accrued settlement $ 114,915