Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash from operating activities:    
Net Loss $ (2,294,819) $ (838,381)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 12,191 12,099
Gain on settlement of debt (64,647)
Stock issued for services 15,000 95,036
Interest expense related to debt discounts of notes payable 844,988
Amortization of stock based prepaid consulting fees 198,068
Loss related to warrants exchanged for stock 630
Warrant derivative loss 582,388
Changes in assets and liabilities:    
Accounts receivable (267,885) 314,797
Costs and estimated earnings on uncompleted contracts 329,034 (13,175)
Prepaid expenses and other current assets 61,968 (45,336)
Accounts payable 53,253 118,522
Accounts payable-related party 1,408 11,135
Payroll taxes payable 259,056 160,153
Accrued expenses 52,233 77,114
Billings in excess of costs and earnings on uncompleted contracts 1,503 116,984
Deferred revenue (261,197) (298,890)
Net cash used in operating activities (675,526) (91,245)
Cash flows from investing activities:    
Purchase of patents/trademarks (70)
Purchase of fixed assets (16,266) (19,029)
Net cash used in investing activities (16,266) (19,099)
Cash flows from financing activities:    
Bank overdraft 3,604
Proceeds from related party notes (13,612) 50,000
Repayments of related party notes (41,178)
Repayments of insurance and equipment financing (26,287) (34,461)
Repayments of notes payable (172,500) (7,500)
Proceeds of notes payable, net of $117,000 cash fees 783,000
Net cash (used in) provided by financing activities 570,601 (29,535)
Net decrease in cash (121,191) (139,879)
Cash, beginning of period 174,376 140,129
Cash, end of period 53,185 250
Supplemental Disclosure of Cash Flow Information:    
Interest paid 45,334 5,969
Taxes paid
Supplemental Non-Cash Investing and Financing Activities:    
Common stock issued for prepaid consulting services 273,600
Accrued interest forgiven related to note payable settlement 20,697
Debt discount related to notes payable 992,369
Note issued for financing of insurance premiums $ 127,620 $ 123,580