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 ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,609,339) $ (1,452,463)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:    
Change in fair value of derivative liabilities (1,237) (425,790)
Depreciation expense 205,569 197,625
Amortization of intangible asset 18,750 18,750
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 121,096 164,608
Imputed interest 446 912
Change in operating assets and liabilities:    
Accounts receivable (411,498) (28,139)
Inventory (62,721) (99,202)
Unbilled revenue (11,346) 17,415
Prepaid expense (101,034) 115,359
Other current assets (29,827) (1,909)
Accounts payable and accrued liabilities 491,916 131,321
Deferred revenue 124,111 (13,937)
Net (used in) operating activities (356,133) (772,935)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (20,676) (34,967)
Net (cash used) in investing activities (20,676) (34,967)
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 438 57,807
Net cash provided by (used in) financing activities 500,438 (43,027)
Effect of exchange rate on cash 29,854 5,849
Net increase (decrease) in cash 153,482 (845,081)
Cash beginning of period 114,733 963,329
Cash end of period 268,216 118,248
SUPPLEMENTAL CASH FLOW INFORMATION    
Interest
Income tax 3,898
NON CASH FINANCE AND INVESTING ACTIVITY    
Common stock issued for prepaid services 100,000
Preferred stock issued for accounts payable 46,694 22,500
Preferred stock issued for conversion of debt $ 650,670