Consolidated Statements of Cash Flows (Unaudited) - USD ($)
|
9 Months Ended |
Sep. 30, 2017 |
Sep. 30, 2016 |
| OPERATING ACTIVITIES: |
|
|
| Net loss |
$ (7,649,924)
|
$ (7,113,695)
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Amortization expense of debt discount |
1,409,790
|
2,822
|
| Gain on derivative liability |
(1,831,635)
|
(24)
|
| Depreciation expense |
26,350
|
25,132
|
| Amortization expense of intangible assets |
219,000
|
97,333
|
| Gain on settlement of make whole provision |
|
(11,000)
|
| Loss on debt extinguishment |
681,988
|
|
| Gain on settlement of debt |
|
(75,000)
|
| Stock based compensation |
4,829,598
|
4,866,324
|
| Recovery of inventory allowance |
|
(15,383)
|
| Changes in current assets and liabilities: |
|
|
| Accounts receivable |
293,251
|
81,078
|
| Inventory |
(275,276)
|
(220,186)
|
| Prepaid expenses and other current assets |
49,340
|
(35,660)
|
| Accounts payable and accrued expense |
(144,000)
|
420,990
|
| Due from related party |
141,368
|
(7,896)
|
| Deferred revenue |
|
(6,000)
|
| Net cash used in operating activities |
(2,250,150)
|
(1,991,165)
|
| INVESTING ACTIVITIES: |
|
|
| Cash paid on furniture and equipment |
(675)
|
(14,099)
|
| Net cash used in investing activities |
(675)
|
(14,099)
|
| FINANCING ACTIVITIES: |
|
|
| Proceeds from related party convertible note payable |
1,000,000
|
|
| Proceeds from bank line of credit |
1,000,000
|
|
| Cash repayment on OTCC loan |
|
(35,000)
|
| Proceeds from convertible Note Payable Series 2016 |
|
3,000,000
|
| Net cash provided by financing activities |
2,000,000
|
2,965,000
|
| NET INCREASE (DECREASE) IN CASH |
(250,825)
|
959,736
|
| CASH, beginning of period |
2,015,214
|
2,659,734
|
| CASH, end of period |
1,764,389
|
3,619,470
|
| Cash paid during the nine months ended September 30: |
|
|
| Interest |
5,875
|
3,149
|
| Noncash investing and financing activities for the nine months ended September 30: |
|
|
| Common Stock issued for Adaptive Flight asset purchase make whole provision |
|
150,500
|
| Conversion of Series A preferred stock to common stock |
25
|
|
| Conversion of Series C preferred stock to common stock |
|
18
|
| Conversion of Series D 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
|
| 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
|