XML 16 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss before noncontrolling interest $ (4,381,000) $ (962,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of derivative liability 4,203,000 (12,000)
Amortization of debt discount and debt issuance cost 79,000 109,000
Depreciation expense 1,000 1,000
Gain on extinguishment of derivative liability (257,000)
Share based compensation 201,000
Write-off of subscription receivable 8,000
Changes in operating assets and liabilities:    
Accounts receivable (5,000) (7,000)
Prepaid expenses and other current assets (3,000) 7,000
Accounts payable 22,000 126,000
Accrued interest 51,000 12,000
Accrued payroll 86,000
Deferred revenue (64,000)
Net cash used in operating activities (204,000) (581,000)
Cash flows from investing activities:    
Purchase of computer equipment (3,000)
Deposit on project paid to related party (250,000)
Net cash used in investing activities (253,000)
Cash flows from financing activities:    
Advances from (repayments to) related parties 354,000 (79,000)
Proceeds from note payable - related party 380,000
Repayment of note payable - related party (100,000) (25,000)
Proceeds from issuance of notes payable 31,000 54,000
(Payments) proceeds from issuance of convertible notes payable (122,000) 254,000
Proceeds from private placements of common stock 182,000
Proceeds from sale of units of common stock and warrants 150,000
Net cash provided by financing activities 163,000 916,000
Net cash increase (decrease) in cash and cash equivalents (41,000) 82,000
Cash and cash equivalents - beginning of period 48,000 160,000
Cash and cash equivalents - end of period 7,000 242,000
Supplemental disclosures of cash flow information:    
Interest paid in cash 19,000 4,000
Taxes paid in cash
Non Cash Investing and Financing Activities    
Common stock issued upon conversion notes payable and accrued interest 91,000 192,000
Common stock issued upon conversion notes payable – related party 9,000
Preferred Stock issued upon settlement of related party advances and accrued payroll 439,000
Accrued legal services paid in stock 12,000
Debt discount due to convertible feature $ 278,000