Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash from operating activities:    
Net Loss $ (2,561,613) $ (2,325,950)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 47,051 44,411
Gain on settlement of accounts payable/note conversion (27,194)
Stock and warrants issued for services 90,036 58,775
Amortization of debt discounts 243,427
Loss on settlement of debt 243,465
Amortization of stock based prepaid consulting fees 351,100 41,126
Loss related to warrants exchanged for stock 630 3,082
Impairment loss 1,578,816
Warrant derivative loss 264,099
Changes in assets and liabilities:    
Accounts receivable 195,246 (134,301)
Costs and estimated earnings on uncompleted contracts (55,557) (202,807)
Prepaid expenses and other current assets 252,282 (35,526)
Accounts payable (221,379) (657,920)
Accounts payable-related party 10,066 (23,052)
Payroll taxes payable 148,261 (303,966)
Accrued expenses 262,535 294,117
Contingent lawsuit liability (550,000) (861,650)
Billings in excess of costs and earnings on uncompleted contracts (83,439) 149,281
Deferred revenue (233,035) 42,812
Net cash used in operating activities (1,840,290) (2,116,481)
Cash flows from investing activities:    
Cash acquired in acquisition 1,346
Purchase of patents/trademarks (70) (10,420)
Purchase of fixed assets (35,345) (66,162)
Net cash used in investing activities (35,415) (75,236)
Cash flows from financing activities:    
Proceeds from issuance of series A preferred stock 296,000
Proceeds from borrowings under convertible notes and other debt 1,730,772
Proceeds from bank line of credit 40,216
Repurchase common stock (148,000)
Proceeds from related party notes 221,570 464,464
Repayments of related party notes (130,818)
Proceeds (repayments) of insurance and equipment financing (220,800) 10,959
Repayments of notes payable (155,000)
Proceeds of notes payable, net of $358,263 cash fees 2,047,000
Net cash provided by financing activities 1,909,952 2,246,411
Net decrease in cash 34,247 54,694
Cash, beginning of period 140,129 85,435
Cash, end of period 174,376 140,129
Supplemental Disclosure of Cash Flow Information:    
Interest paid 245,134 59,398
Taxes paid 10,149 3,136
Supplemental Non-Cash Investing and Financing Activities:    
Common stock issued upon conversion of convertible debt 2,258,071
Common stock issued for prepaid consulting services 351,100
Common stock issued to settle notes payable and accrued interest 610,802
Common stock issued to settle accounts payable 16,800
Common stock issued for accrued salary 56,482
Reclassification of put premium liability on convertible notes to paid-in capital 111,058
Increase in debt discount and paid-in capital for warrants issued with debt 791,303 30,722
Note issued for financing of insurance premiums 223,154
Accrued dividends 5,920
Liabilities assumed in share exchange 1,186,234
Less: assets acquired in share exchange (1,347)
Net liabilities assumed 1,184,887
Fair value of shares exchanged 393,929
Increase intangible assets $ 1,578,816