Consolidated Statements of Cash Flows (Unaudited) - USD ($)
|
3 Months Ended |
Mar. 31, 2018 |
Mar. 31, 2017 |
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
| Net (loss) income |
$ (26,093,500)
|
$ 1,961,092
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation and amortization |
101,782
|
|
| Stock compensation expense |
71,200
|
0
|
| Loss (Gain) on change in fair value of derivative liabilities |
24,902,861
|
(2,469,356)
|
| Initial derivative liability expense |
425,600
|
103,281
|
| Amortization of debt discount |
108,191
|
153,550
|
| Amortization of deferred financing costs |
1,965
|
1,708
|
| Amortization of original issue discount |
6,372
|
11,945
|
| (Increase) Decrease in: |
|
|
| Accounts receivable |
(105,281)
|
(85,167)
|
| Other current assets |
69
|
(1,677)
|
| Other assets |
(10,545)
|
9,332
|
| Increase (Decrease) in: |
|
|
| Accounts payable |
192,061
|
32,808
|
| Accrued expenses |
405,964
|
145,986
|
| Deferred revenue |
(43,646)
|
|
| Net Cash Used in Operating Activities |
(52,500)
|
(136,498)
|
| CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
| Purchase of property and equipment |
(5,130)
|
|
| Net Cash Used in Investing Activities |
(5,130)
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
| Repayments of note payable |
(118,877)
|
|
| Proceeds from convertible notes payable |
308,500
|
60,000
|
| Proceeds from notes payable |
|
59,000
|
| Repayments to line of credit |
(4,020)
|
|
| Payments to related parties |
(12,000)
|
|
| Net Cash Provided by Financing Activities |
173,603
|
119,000
|
| Net (Decrease) Increase in Cash |
115,973
|
(17,498)
|
| Cash - Beginning of Period |
68,437
|
58,449
|
| Cash - End of Period |
184,410
|
40,951
|
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
| Interest |
25,420
|
|
| Income Taxes |
|
|
| NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
| Issuance of common stock (in connection with conversion of convertible promissory notes and accrued interest) |
222,440
|
148,301
|
| Initial recognition of derivative liability as debt discount |
229,673
|
103,281
|
| Reclassification of derivative liability to additional paid in capital (in connection with the conversion of convertible promissory notes and accrued interest) |
$ 664,108
|
$ 224,973
|