Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.6.0.2
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
OPERATING ACTIVITIES:    
Net loss $ (8,533,515) $ (8,975,862)
Adjustments to reconcile net loss to net cash used in operating activities:    
Allowance for inventory obsolescence 18,589
Depreciation expense 33,789 19,955
Amortization expense of intangible assets 170,333 37,935
Impairment of intangible asset 65,674
Amortization expense of debt discount 302,818
Gain on settlement of make whole provision (11,000)
Gain on derivative liability (562,961)
Gain on settlement of debt (75,000)
Stock based compensation 5,553,026 5,934,988
Changes in current assets and liabilities:    
Accounts receivable (310,712) (53,118)
Inventory (341,090) (97,980)
Prepaid expenses and other current assets (64,990) (5,455)
Accounts payable and accrued expense 213,165 177,874
Due to related party 40,849 3,819
Deferred revenue (7,896) 7,896
Net cash used in operating activities (3,593,184) (2,865,685)
INVESTING ACTIVITIES:    
Cash paid on asset acquisition (200,000)
Cash paid on furniture and equipment (16,336) (129,227)
Net cash used in investing activities (16,336) (329,227)
FINANCING ACTIVITIES:    
Proceeds from common stock issued for cash 3,484,750
Proceeds from Series G preferred stock issued for cash   1,000,000
Cash repayment on OTCC loan (35,000)
Proceeds from related party Convertible Notes Payable Series 2016 3,000,000
Net cash provided by financing activities 2,965,000 4,484,750
NET INCREASE (DECREASE) IN CASH (644,520) 1,289,838
CASH, beginning of period 2,659,734 1,369,896
CASH, end of period 2,015,214 2,659,734
Cash paid during the year ended December 31, 2016:    
Interest 327 1,904
Income taxes 159
Noncash investing and financing activities for the year ended December 31, 2016:    
Common Stock issued for adaptive flight asset make whole provision 150,500
Conversion of Series A preferred stock to common stock 74
Conversion of Series B preferred stock to common stock 1
Conversion of Series B-1 preferred stock to common stock 5
Conversion of Series C preferred stock to common stock 18 68
Conversion of Series D preferred stock to common stock 5 85
Conversion of Series E preferred stock to common stock 14
Conversion of Series F preferred stock to common stock 5 3
Conversion of Series G preferred stock to common stock 5 5
Asset acquisition for stock 1,260,000
Common stock issued to Series E, F and G holders 25
Deemed dividend beneficial conversion featue on convertible preferred stock 80,000
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