Cash Flow

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
OPERATING ACTIVITIES:    
Net loss $ (3,944,256) $ (7,649,924)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization expense of debt discount 1,409,790
Gain on derivative liability (1,831,635)
Loss on debt extinguishment 681,988
Depreciation 29,238 26,350
Loss on disposal of property and equipment 10,002
Amortization expense of intangible assets 219,000 219,000
Stock based compensation 1,647,444 4,829,598
Changes in current assets and liabilities:    
Accounts receivable 44,305 293,251
Inventory (769,966) (275,276)
Prepaid expenses and other current assets 3,238 49,340
Accounts payable and accrued expense 447,943 (144,000)
Due from related party 11,937 141,368
Deferred revenue 9,800
Net cash used in operating activities (2,291,315) (2,250,150)
INVESTING ACTIVITIES:    
Cash received from sale of vehicle 60,000
Cash paid on fixed assets (5,279) (675)
Net cash provided by (used in) investing activities 54,721 (675)
FINANCING ACTIVITIES:    
Proceeds from related party convertible note payable 900,000 1,000,000
Proceeds from bank line of credit 900,000 1,000,000
Net cash provided by financing activities 1,800,000 2,000,000
NET DECREASE IN CASH (436,594) (250,825)
CASH, beginning of period 615,375 2,015,214
CASH, end of period 178,781 1,764,389
Cash paid during the nine months ended September 30:    
Interest 232,255 5,875
Noncash investing and financing activities for the nine months ended September 30:    
Conversion of Series A preferred stock to common stock $ 25

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