CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended |
Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | | |
Net loss | $ (1,924,528) | $ (647,288) |
Adjustments to reconcile net loss to net cash used in operating activities: | | |
Stock-based compensation | 862,800 | 110,991 |
(Gain)/loss on derivative liabilities | (439,113) | 376,187 |
Impairment loss on equity method investment | 499,000 | |
Amortization of debt discounts | 451,693 | 17,804 |
Loss on true-up of convertible notes | 34,383 | |
Additional common shares issued for true-up of convertible notes | 51,470 | |
Changes in operating assets and liabilities: | | |
Accounts receivable (increase/decrease) | (821) | (7,537) |
Stock subscription receivable (increase/decrease) | 5,254 | |
Inventories (increase/decrease) | | 1,565 |
Prepaid expenses and other current assets (increase/decrease) | 4,716 | (22,147) |
Accounts payable and accrued liabilities (increase/decrease) | 5,159 | 12,076 |
Interest payable (increase/decrease) | 66,679 | 6,000 |
Net cash used in operating activities | (383,308) | (152,349) |
Cash flows from investing activities: | | |
Deposit made on acquisition of investment | | (50,000) |
Cash paid for intangible asset | (200,000) | |
Equity investment in equity method investee | (499,000) | |
Net cash used in investing activities | (699,000) | (50,000) |
Cash flows from financing activities: | | |
Borrowings on convertible note, net of original issue discounts | 82,500 | 55,000 |
Proceeds from issuing common stock | 48,380 | |
Proceeds from exercise of Series A preferred warrants | | 40,000 |
Proceeds from sale of Series A preferred stock and warrants | 235,000 | 100,000 |
Net cash provided by financing activities | 365,880 | 195,000 |
Net increase in cash and cash equivalents | (716,428) | (7,349) |
Cash and cash equivalents beginning of period | 733,637 | 35,848 |
Cash and cash equivalents end of period | 17,209 | 28,499 |
Noncash Investing and Financing Activities | | |
Common stock issued for the conversion of Series A preferred stock | 60,000 | 1,700 |
Debt discounts due to derivative liabilities | 181,803 | 60,500 |
Payments of accounts payable by third party | | 2,075 |
Original issue discount on convertible note | | $ 5,500 |
Resolution of derivative liabilities | 1,126,245 | |
Common shares issued for conversion of debt and interest | $ 679,251 | |