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, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss $ (2,443,881) $ (15,186,393)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 19,373 28,196
Stock based compensation $ 564,399 10,783,948
Amortization of debt discount 4,592
Gain on sale of assets $ (95,000) (2,426)
Changes in assets and liabilities:    
Deposits and other assets 5,102 1,989
Prepaid expenses 12,389 (50,194)
Inventory   28,099
Accrued payroll and payroll related expenses 883,323 (198,989)
Accounts payable (16,626) (153,510)
Accrued interest $ 222 (101,553)
Fees payable to directors (50,000)
Patent license payable   (10,000)
Other current liabilities (12,613)
Net cash used in operating activities $ (1,070,699) (4,918,854)
Cash flows from investing activities:    
Purchases of property and equipment (1,634)
Proceeds from sale of property and equipment $ 10,000 2,426
Expenditures on patents (21,852) (20,419)
Net cash used in investing activities (11,852) (19,627)
Cash flows from financing activities:    
Proceeds from the issuance of common stock 1,430,000 3,923,798
Proceeds from the issuances of notes payable $ 30,000 2,076,000
Repayment of principal on notes payable (550,408)
Net cash provided by financing activities $ 1,460,000 5,449,390
NET INCREASE IN CASH 377,449 510,909
Cash at the beginning of the year 35,696 222,410
Cash at the end of the period 413,145 733,319
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion of notes payable and accrued interest into common stock 30,222 $ 11,125,167
Conversion of accrued payroll and payroll related expenses into stock options $ 970,069
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest $ 188,382
Cash paid for income taxes