Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (1,387,926) $ (2,443,881)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 22,055 19,373
Stock based compensation 204,083 771,358
Gain on sale of assets (95,000)
Changes in assets and liabilities:    
Inventory (25,275)
Deposits and other assets (1,767) 5,102
Prepaid expenses (19,084) 12,389
Accrued payroll and payroll related expenses 270,763 676,364
Accounts payable and accrued expenses 78,770 (16,626)
Accrued interest 222
Net cash used in operating activities (858,381) (1,070,699)
Cash flows from investing activities:    
Proceeds from sale of property and equipment 10,000
Increase in patents (24,131) (21,852)
Net cash used in investing activities (24,131) (11,852)
Cash flows from financing activities:    
Proceeds from the issuance of common stock 800,000 1,430,000
Proceeds from the issuances of notes payable 30,000
Net cash provided by financing activities 800,000 1,460,000
NET (DECREASE) INCREASE IN CASH (82,512) 377,449
Cash at the beginning of the period 323,410 35,696
Cash at the end of the period 240,898 413,145
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Conversion of notes payable and accrued interest into common stock 30,222
Conversion of accrued payroll and payroll related expenses into stock options 227,784 669,006
Conversion of accounts payable into stock options 66,445 301,063
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 2,249
Cash paid for income taxes