XML 18 R5.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 $ (3,216,844) $ (12,618,567)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Depreciation and amortization 6,684 4,317
Amortization of deferred financing costs and debt discount 1,331,663 0
Stock granted for consulting services 492 13,300
Forgiveness of debt income (25,555) (247,021)
Write-off of website costs 0 (10,900)
Loss on issuance of convertible debt 0 (149,963)
Increase in fair value of derivative liability 578,756 8,755,391
Stock issued as charitable contribution 0 65,000
Stock-based compensation 0 2,166,707
Stock bonus - officers, net of cash paid 0 162,217
Changes in assets and liabilities:    
Decrease (increase) in escrow account 12,500 (12,500)
Decrease (increase) in accounts receivable 47,907 (44,726)
Decrease (increase) in loans receivable 7,262 (7,262)
Decrease (increase) in inventory 25,591 (105,733)
Decrease in prepaid expenses and other current assets 2,587 91,800
(Decrease) increase in deferred rent (644) 797
Website development costs 0 (10,733)
Increase in accounts payable and accrued expenses 335,153 56,888
Net cash used in operating activities (894,447) (1,591,062)
Cash flows from financing activities    
Debt issuance costs paid 0 (53,000)
Proceeds from private placements 0 1,800,000
Costs of private placements (30,500) (260,696)
Proceeds from secured convertible notes payable 750,000 425,000
Purchase of common stock by officers 0 251,639
Increase (decrease) in due to officers/stockholders 111,778 (73,193)
Net cash provided by financing activities 831,278 2,089,750
Net (decrease) increase in cash and cash equivalents (63,169) 498,688
Cash and cash equivalents, beginning of year 504,358 5,670
Cash and cash equivalents, end of year 441,189 504,358
Supplemental cash flow disclosures:    
Interest paid 655 367
State minimum taxes and franchise fees paid 2,055 2,350
Note payable issued as deferred cost $ 75,000 $ 0