Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOWS

v3.3.1.900
STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net loss $ (2,694,310) $ (387,544)
Adjustments to reconcile net loss to net cash used in operating activities    
Stock based compensation - related party 1,395,869
Depreciation expense 1,155
Amortization of stock issued for future services 48,300 $ 16,100
Estimated fair market value of stock issued for services 167,000 $ 23,050
Interest expense in conjunction with debt issuance 433,590
Accretion of debt discount 12,591
Deferred offering costs charged to expense 150,000
Changes in operating assets and liabilities:    
Accounts receivable (29,206) $ (1,021)
Inventory 9,930 25,249
Prepaid expenses (10,155) (3,468)
Accounts payable - related party 191,416 103,194
Accrued compensation - related party 240,000 180,000
Net cash used in operating activities (83,820) $ (44,440)
Cash flows from investing activities:    
Acquisition of intangible assets (10,000)
Purchases of computer equipment (2,451) $ (3,465)
Net cash used in investing activities (12,451) $ (3,465)
Cash flows from financing activities:    
Proceeds from long-term convertible notes, net of debt issuance costs of $138,000 724,500
Advance from shareholder $ 10,500 $ 48,000
Shares sold for cash
Net cash provided by financing activities $ 735,000 $ 48,000
Net increase in cash 638,729 $ 95
Cash at beginning of period 95
Cash at end of period 638,824 $ 95
Non-cash investing and financing activities:    
Stock issued to third party in conjunction with debt issuance 625,000
Warrants issued to third party in conjunction with debt issuance 439,107
Embedded derivative issued to third party in conjunction with debt issuance 88,983
Stock issued to third party in exchange for intangible 250,000
Inventory samples acquired for accounts payable - related party 97,209
Debt discount for accounts payable - related party 5,000
Reduction of advance from shareholder with accounts receivable 38,637
Stock issued for deferred offering costs $ 75,000 $ 75,000
Stock issued to third parties for future services 64,400
Stock issued to third party in exchange for inventory $ 300,000