XML 22 R6.htm IDEA: XBRL DOCUMENT v3.3.1.900
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,688,845) $ (86,626,099)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Depreciation and amortization 13,715 33,641
Amortization of intangible assets 106,548 106,548
Change in inventory reserve 0 12,711
Stock based compensation 175,661 724,267
Preferred shares issued for services 300,000 0
Common stock issued for services 210,985 2,721,600
Amortization of debt discount (158,237) 1,363,847
Change in fair value of derivative liability (723,740) 16,252,823
Expense related to warrant 0 62,500,000
Accrued interest on convertible notes payable 310,500 183,214
Loss on class action lawsuit settlements 2,000,000 0
Issuance of Series B Convertible Preferred Stock 1,500,000 0
Write-off of patent expenses 3,600 0
Excess and obsolete inventory 20,215 0
Realized gain on sale of investment 0 (186,791)
Changes in assets and liabilities:    
Restricted Cash 0 46,400
Accounts receivable 0 183,678
Inventory 464,696 357,660
Prepaid expenses 41,791 (24,790)
Other receivable 0 3,666
Deposits 16,830 12,589
Accounts payable 215,362 33,926
Accrued expenses (209,972) 209,421
Deferred revenue 25,000 (30,888)
CASH (USED IN) OPERATING ACTIVITIES (1,375,891) (2,122,577)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Net cash proceeds from shares in Vape Holdings, Inc. 0 187,951
Capital expenditures 0 (3,925)
NET CASH PROVIDED BY INVESTING ACTIVITIES: 0 184,026
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from the issuance of convertible notes 1,150,000 350,000
Series B Convertible Preferred Stock 15 0
Proceeds from options exercised 0 44,673
Payments of notes payable - related party 0 (1,160)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,150,015 393,513
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (225,876) (1,545,038)
CASH AND CASH EQUIVALENTS, beginning of period 286,238 1,831,276
CASH AND CASH EQUIVALENTS, end of period 60,362 286,238
Supplemental disclosures of cash flows information:    
Cash paid for interest 10,500 0
Cash paid for income taxes 0 0
NON-CASH TRANSACTIONS    
Six percent Senior secured convertible notes converted into common stock 0 62,025
Seven percent Senior secured convertible notes converted into common stock 0 1,384,207
Twelve percent Senior secured convertible notes converted into common stock 0 439,688
Common stock issued for cashless exercise of options 0 357
Common stock issued for conversion of accounts payable $ 171,000 $ 0