Cash Flow

v3.5.0.2
Condensed Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (7,979,189) $ (3,555,100)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 70,116 39,919
Amortization of beneficial conversion costs 0 598,254
Amortization of endorser agreements 794,552 0
Amortization of note discount 0 2,666
Employee stock compensation 141,989 145,591
Non-employee warrant compensation 287,119 0
Valuation of warrants for services rendered 57,921 0
Discount on three year, 50% notes payable 9,944 51,009
Capital contributed/co-founders’ forfeiture of contractual compensation 37,500 59,250
Valuation of warrants 0 107,599
Debt issuance costs 0 (10,000)
Change in allowance for bad debts 119,592 (159,000)
Loss on asset disposals 2,396 1,780
Change in operating assets and liabilities:    
Accounts receivable (220,735) 511
Inventories (91,973) (205,175)
Prepaid expenses and other current assets (300,005) 56,462
Deferred loan costs 0 50,000
Deferred revenues (111,944) (602,451)
Accounts payable and accrued expenses (341,831) 834,448
Net Cash Used in Operating Activities (7,524,548) (2,584,237)
CASH FLOWS FROM INVESTING ACTIVITIES    
Investment (50,000) 0
Capitalized software costs (620,950) 0
Proceeds from asset disposals 19,950 4,000
Purchases of property and equipment (137,367) (13,328)
Net Cash Used in Investing Activities (788,367) (9,328)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from notes payable 0 607,001
Proceeds from common stock to be issued, net 0 2,544
Payments on notes payable (98,721) (563,118)
Payments on three-year, 50% notes payable (40,500) (30,750)
Proceeds from convertible notes 568,500 2,123,068
Proceeds from the issuance of stock for warrant exercises 0 119,366
Payments on capitalized lease obligation (18,725) (5,659)
Net Cash Provided by Financing Activities 410,554 2,252,452
NET DECREASE IN CASH AND CASH EQUIVALENTS (7,902,361) (341,113)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 8,295,310 587,459
CASH AND CASH EQUIVALENTS, END OF YEAR 392,949 246,346
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 59,025 188,311
Cash paid for income tax 37,206 8,298
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion into common stock 18,947 0
Financing of prepaid insurance policy 0 43,045
Series B Preferred stock dividends 0 26,034
Accretion of beneficial conversion feature on preferred shares dividends issued in kind 0 52,500
Loans and leases for vehicles 213,017 0
Insurance proceeds applied to outstanding bank loan 0 11,254
Reclassification of contractual prepayment from deferred revenue to notes payable 0 33,333
Non-cash issuance of 2,000 and 1,200 shares of common stock to third party for services performed and to be performed 0 17,000
Stock Issued for Prior Warrant Exercises [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of common stock for prior year exercises 0 32,000
Stock Issued for Prior Subscriptions [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of common stock for prior year exercises 211,257 20,000
Stock Issued or Issuable to Endorsers [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of common stock for prior year exercises 299,000 0
Note Conversion [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion into common stock 0 358,415
Conversion of Accounts Payable [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion into common stock 0 109,490
Conversion of Accounts Payable [Member] | Common Stock To Be Issued [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion into common stock 0 4,265
Conversion of Notes Payable [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion into common stock 0 7,500
Conversion of Notes Payable [Member] | Common Stock To Be Issued [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion into common stock $ 0 $ 331,040

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