CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) – USD ($)
|
12 Months Ended |
Dec. 31, 2017
|
Dec. 31, 2016
|
Cash flows from operating activities: |
|
|
Net Loss |
$ (2,994,096) |
$ (2,667,051) |
Adjustments to reconcile net loss to net cash used in operations: |
|
|
Provision for Bad Debt |
56,620 |
15,000 |
Provision for inventory reserves |
22,448 |
|
Depreciation |
26,129 |
13,955 |
Amortization of debt discount |
192,335 |
321,056 |
Amortization |
327,529 |
252,134 |
Stock option compensation expense |
108,090 |
147,472 |
Impairment of Website Assets |
70,404 |
95,773 |
Common stock issued for services |
25,860 |
73,290 |
Product refund reserve |
11,580 |
14,580 |
Changes in operating assets and liabilities: |
|
|
Accounts receivable |
(429,187) |
(144,144) |
Inventory |
493,156 |
(15,182) |
Prepaid expenses and other current assets |
(12,782) |
(73,440) |
Accounts payable |
127,586 |
224,478 |
Accrued interest |
78,889 |
|
Accrued interest – related party |
(5,592) |
|
Deferred revenues |
9,735 |
|
Deferred rents |
18,886 |
|
Other assets |
139,792 |
(118,436) |
Net cash used in operating activities |
(1,732,618) |
(1,860,515) |
Cash flows from investing activities: |
|
|
Purchase of fixed assets |
(16,628) |
(61,651) |
Cash paid for acquisition, net |
(207,801) |
(607,463) |
Net cash used in investing activities |
(224,429) |
(669,114) |
Cash flows from financing activities: |
|
|
Proceeds from issuance of Series E Preferred Stock |
550,000 |
|
Proceeds from issuance of common stock |
50,000 |
800,000 |
Series E dividend payments |
(11,303) |
|
Repayments on insurance premium notes payable |
9,490 |
1,237 |
Issuance (repayments) of notes payable |
(123,913) |
500,000 |
Proceeds from long term debt- related parties |
1,460,000 |
975,000 |
Net cash provided by financing activities |
1,934,274 |
2,276,237 |
Net (decrease) in cash |
(22,773) |
(253,392) |
Cash at beginning of period |
162,795 |
416,187 |
Cash at end of period |
140,022 |
162,795 |
Supplemental Disclosure of Cash Flow Information |
|
|
Cash paid for: Interest |
215,908 |
30,725 |
Cash paid for: Income taxes |
|
|
Non-Cash Investing and financing activities |
|
|
Premium finance loan payable recorded as prepaid |
92,322 |
84,825 |
Beneficial conversion debt discount to additional paid-in-capital |
615,625 |
621,500 |
Payable to seller |
$ 380,000 |
150,000 |
Discount on note |
|
$ 32,732 |
Common stock issued for the acquisition |
|
200,000 |
Fair value of common stock issued for the acquisition |
|
$ 170,000 |
Inventory |
|
58,000 |
Assumed liabilities |
|
$ 40,000 |
Common stock issued to due Series A, Series B, and Series C stockholders |
10,000 |
809,472 |
Conversion of stock shares issued of its Series A, Series B, Series C, and Series D Common Stock |
|
5,100,000 |
Conversion of stock shares issued of its Series A, Series B, Series C, and Series D preferred stock |
|
5,100,000 |
Shares issued on conversion of convertible notes |
|
1,207,200 |
Shares issued on conversion of convertible notes, value |
|
$ 600,000 |
Conversion of interest due |
|
$ 3,600 |
Common shares issued to stockholder |
1,100,233 |
|
Fair market value of common shares issued to stockholder |
$ 429,092 |
|
Reduced working capital |
125,313 |
|
Forgiveness of notes receivable |
$ 204,411 |
|