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 ($)
 3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities:    
Net loss $ (739,392) $ (613,895)
Adjustments to reconcile net loss to net cash used in operating activities    
Stock based compensation issued to employees 45,991
Depreciation expense 3,156 3,399
Amortization expense 58,443 51,932
Accretion of debt discount 78,596 188,328
Change in derivative liabilities (306,018) 34,802
Change in warrant liabilities 45,762
Loss on extinguishment of debt 548,425
Amortization of stock issued for future services 3,750
Estimated fair market value of stock issued for services 21,531 25,000
Changes in operating assets and liabilities:    
Accounts receivable (13,398) (25,143)
Inventory 4,744 (1,250)
Prepaid expenses 1,002 834
Accounts payable 7,881 829
Due to related party 41,322 90,923
Accrued compensation - related party 20,000 65,000
Deferred revenue (46,155) (25,977)
Estimated fair value of contingent payments, net (918)
Other current liabilities (4,810) 5,501
Net cash used in operating activities (321,841) (107,964)
Cash flows from investing activities:    
Acquisition of intangible assets (31,954)
Purchases of computer equipment (470)
Net cash used in investing activities (32,424)
Cash flows from financing activities:    
Proceeds from short-term convertible notes, net of debt issuance costs 250,000
Proceeds from short-term notes, net of debt issuance costs 134,020
Repayments of short term notes (30,470)
Net cash provided by financing activities 353,550
Net increase(decrease) in cash 31,709 (140,388)
Cash at beginning of period 9,592 149,607
Cash at end of period 41,301 9,219
Cash paid during the period for:    
Interest
Income taxes
Non-cash investing and financing activities:    
Common stock issued for payment of accounts payable 14,985
Common stock and warrants issued in conjunction with convertible notes payable 169,066
Common stock issued to third party in conjunction with debt issuance 55,500
Warrants issued to third party in conjunction with convertible notes payable 36,739
Debt issuance costs in conjunction with convertible notes payable 44,000
Deferred interest payable issued in conjunction with convertible notes payable $ 29,400