Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
OPERATING ACTIVITIES:    
Net loss $ (7,113,695) $ (5,402,277)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 25,132 10,809
Amortization expense of intangible assets 97,333 29,699
Amortization expense of debt discount 2,822
Gain on settlement of make whole provision (11,000)
Gain on derivative liability (24)
Gain on settlement of debt (75,000)
Stock based compensation 4,866,324 3,476,723
Recovery of inventory allowance (15,383)  
Changes in current assets and liabilities:    
Accounts receivable 81,078 26,199
Inventory (220,186) (193,870)
Prepaid expenses and other current assets (35,660) (16,344)
Accounts payable and accrued expense 420,990 111,430
Due from related party (7,896) (2,181)
Deferred revenue (6,000) 129,575
Net cash used in operating activities (1,991,165) (1,830,237)
INVESTING ACTIVITIES:    
Cash paid on asset acquisition (200,000)
Cash paid on furniture and equipment (14,099) (89,912)
Net cash used in investing activities (14,099) (289,912)
FINANCING ACTIVITIES:    
Cash repayment on OTCC loan (35,000)
Proceeds from Convertible Notes Payable Series 2016 3,000,000
Series G preferred stock issued for cash 985,725
Net cash provided by financing activities 2,965,000 985,725
NET INCREASE (DECREASE) IN CASH 959,736 (1,134,424)
CASH, beginning of period 2,659,734 1,369,896
CASH, end of period 3,619,470 235,472
Cash paid during the nine months ended September 30:    
Interest 3,149 404
Noncash investing and financing activities for the nine months ended September 30:    
Common Stock issued for adaptive flight asset make whole provision 150,500
Conversion of Series A preferred stock to common stock 44
Conversion of Series C preferred stock to common stock 18 8
Conversion of Series D preferred stock to common stock 5 35
Conversion of Series E preferred stock to common stock 5
Conversion of Series F preferred stock to common stock 5
Conversion of Series G preferred stock to common stock 5
Asset acquisition for stock 1,260,000
Derivative liability on reset provision of Convertible Notes Payable Series 2016 2,394,974
Stock Issued for November 2015 PIPE Investors as consent Shares $ 50