XML 27 R6.htm IDEA: XBRL DOCUMENT v3.7.0.1
STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net Loss $ (2,129,419) $ (1,870,677)
Adjustments to reconcile net loss to net cash used by operating activities:    
Amortization of debt discount to interest expense 461,725 618,835
Loss on change in derivative liabilities 616,286 106,543
Non-cash interest expense 31,939
Changes in operating assets and liabilities:    
Accounts receivable, net (3,241) 11,693
Prepaid expenses and other current assets (32) 2,996
Accounts payable 8,920 8,013
Accrued expenses 3,461 (3,303)
Accrued interest payable - related party 144,704 145,412
Accrued interest payable 214,275 122,318
Unearned royalties (67,832) (7,466)
Net cash used by operating activities (719,214) (865,636)
Cash flows from Investing activities:    
Net cash provided by investing activities
Cash flows from financing activities:    
Proceeds from note payable 58,096
Proceeds from convertible notes payable 639,000 639,000
Net cash provided by financing activities 697,096 893,000
Net increase (decrease) in cash (22,118) 27,364
Cash at the beginning of the year 42,052 14,688
Cash at the end of the year 19,934 42,052
Non-cash transactions    
Conversion of related party debt and accrued interest to common shares 13,270
Conversion of debt and accrued interest to common shares 116,334 72,952
Debt discount due to derivative liabilities $ 520,919 $ 455,141