XML 15 R5.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 $ (2,571,060) $ (1,012,396)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock based compensation and stock issued for services 932,998 436,425
Non-cash portion of interest expense 249,502  
Depreciation and amortization 27,263 13,888
Amortization of debt discount 67,235  
Change in fair value of derivative liabilities (7,900)  
Bad debt expense 324,618 88,760
Changes in assets and liabilities:    
Accounts receivable (23,673) (369,843)
Inventories (201,038) 10,622
Brand participation fee   150,000
Prepaid inventories 16,276  
Other assets (34,862) (137,345)
Accounts payable and accrued expenses 256,383 81,860
Accounts payable and advances - related parties 318,099 (71,024)
Deferred revenues   (234,917)
Accrued interest 14,150  
Other liabilities 238,384  
Net cash used in operating activities (393,625) (1,043,970)
Cash flows from investing activities    
Deposits   (13,216)
Purchase of property and equipment (4,540) (141,045)
Net cash used in investing activities (4,540) (154,261)
Cash flows from financing activities    
Proceeds from issuance of notes payable 390,000  
Proceeds from issuance of common stock   340,000
Net cash provided by investing activities 390,000 340,000
Net decrease in cash and cash equivalents (8,165) (858,231)
Cash, beginning of period 22,907 1,344,737
Cash, end of period 14,742 486,506
Cash paid for:    
Interest  
Income taxes  
Supplemental disclosure of noncash activities:    
Issurance of common shares in connection with notes payable 26,642  
Derivative liabilities 106,278  
Beneficial conversion feature in connection with notes payable 43,785  
Issuance of previously earned but unissued common stock 13  
Prepaid consulting $ 128,000  
Issuance of common stock for intellectual property   250,000
Cancellation of common stock for intellectual property   $ (100,000)