Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net loss $ (3,074,690) $ (2,620,274)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities    
Stock based compensation issued to employees 7,742
Stock based compensation - related party 2,390
Depreciation expense 12,420 12,698
Amortization expense 62,906 234,688
Gain on disposal of discontinued operations (260,883)
Accretion of debt discount 27,750 340,216
Change in derivative liabilities (530,838)
Loss on modification of debt 2,739,847
Loss on extinguishment of debt 535,039
Amortization of stock issued for future services 13,750
Estimated fair market value of stock issued for services 230,521
Impairment of long-term assets 942,736
Changes in operating assets and liabilities:    
Accounts receivable 7,634
Inventory 135,485 2,545
Prepaid expenses 1,336
Accounts payable (12,227) (138,805)
Due to related party (81,634) 525,371
Accrued compensation - related party 260,000 203,750
Deferred revenue (59,478)
Estimated fair value of contingent payments, net (8,932)
Other current liabilities 47,342 11,799
Net cash used in operating activities (143,684) (286,112)
Cash flows from investing activities:    
Acquisition of intangible assets (5,502)
Purchases of computer equipment (2,950)
Proceeds from sale of business 100,000
Net cash used in investing activities 100,000 (8,452)
Cash flow from financing activities:    
Proceeds from short-term convertible notes, net of debt issuance costs 70,020 250,000
Proceeds from short-term notes, net of debt issuance costs 0 155,020
Repayments of short term notes (33,333) (112,551)
Net cash provided by financing activities 36,687 292,469
Net decrease in cash (6,997) (2,095)
Cash at beginning of period 7,497  
Cash at end of period 500 7,497
Cash paid during the period for:    
Interest
Income taxes
Non-cash investing and financing activities:    
Extinguishment of debt of founders 1,589,415
Common stock issued for payment of accounts payable 205,765
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
Reclassification of common stock payable to equity for shares issued $ 156,656