Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ 59,946 $ (421,982)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:    
Change in fair value of derivative liabilities (464,505) (233)
Depreciation expense 69,529 8,655
Amortization of intangible asset 6,250 6,250
Amortization of notes payable discount 75,626 0
Amortization of license fee 0 55,555
Fair value of option issued 0 107,500
Stock based compensation 0 42,500
Amortization of prepaid expense in connection with the issuance of common stock issued for prepaid services 74,091 4,688
Imputed interest 252 0
Changes in operating assets and liabilities:    
Accounts receivable (118,924) 19,127
Inventory (61,142) (2,990)
Unbilled revenue 9,398 (6,642)
Prepaid expense (130,582) 0
Other current assets (2,676) (13,861)
Accounts payable and accrued expenses 7,272 13,205
Deferred revenue 5,996 (16,959)
Net Cash (used in) operating activities (469,469) (195,187)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash acquired from acquisition 0 30,934
Purchase of property and equipment (3,318) (32,473)
Cash paid per Share Exchange Agreement 0 (375,000)
Net cash (used in) investing activities (3,318) (376,539)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from common stock and preferred stock sales 0 1,097,500
Payments on notes payable (75,626) 0
Repayments of note payable, related party, net (25,632) (59,308)
Net cash (used in) provided by financing activities (101,259) 1,038,192
Effect of exchange rate on cash 2,039 (424)
Net (decrease) increase in cash (572,007) 466,042
Cash beginning of period 963,329 65,892
Cash end of period 391,322 531,934
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid during the period for interest 0 0
Cash paid during the period for income tax 0 0
NON CASH FINANCE AND INVESTING ACTIVITY    
Notes payable issued per Share Exchange Agreement 0 122,536
Common stock issued for intellectual property 0 50,000
Common stock issued for prepaid services 100,000 25,000
Common stock issued for settlement of debt $ 0 $ 175,000