Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (3,360,273) $ (1,113,791)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:    
Change in fair value of derivative liabilities 1,237 424,846
Depreciation expense 137,658 133,656
Amortization of intangible asset 12,500 12,500
Preferred stock-based price protection expense 2,308,981
Amortization of notes payable discount 602,515
Stock based compensation 600,000
Amortization of prepaid expense in connection with the issuance of common stock issued for prepaid services 80,582 164,608
Imputed interest 436 471
Change in operating assets and liabilities:    
Accounts receivable (115,846) (63,198)
Inventory (92,303) (38,004)
Unbilled revenue (33,989) 5,705
Prepaid expense 10,000 (1,237)
Other current assets (55,256) 1,047
Accounts payable and accrued liabilities 389,017 31,342
Deferred revenue 19,099 (16,662)
Net (used in) operating activities (100,631) (705,892)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (16,964) (30,654)
Net (cash used) in investing activities (16,964) (30,654)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payments of convertible notes payable (100,834)
Proceeds from sale of preferred stock 500,000
Proceeds (repayments) of note payable, related party, net (7,019) 11,571
Net cash provided by (used in) financing activities 492,981 (89,263)
Effect of exchange rate on cash 11,570 (2,375)
Net increase (decrease) in cash 386,956 (828,187)
Cash beginning of period 114,733 963,329
Cash end of period 501,689 135,142
Cash paid during the period for    
Interest
Income tax
NON CASH FINANCE AND INVESTING ACTIVITY    
Common stock issued for prepaid services 100,000
Preferred stock issued for accounts payable 46,694
Preferred stock issued for conversion of debt $ 650,670