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 ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (1,700,420) $ (13,305,999)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 15,000 18,761
Stock based compensation $ 514,399 9,997,201
Amortization of debt discount   4,592
Gain on sale of assets $ (95,000) (2,426)
Changes in assets and liabilities:    
Deposits and other assets 5,695 2,578
Prepaid expenses 2,108 (52,421)
Accrued payroll and payroll related expenses 697,412 (183,496)
Accounts payable (8,651) (106,538)
Accrued interest $ 222 (101,553)
Fees payable to directors   (44,792)
Other current liabilities   (12,613)
Net cash used in operating activities $ (569,235) (3,786,706)
Cash flows from investing activities:    
Proceeds from sale of property and equipment 10,000 2,426
Expenditures on patents (15,785) (9,135)
Net cash used in investing activities (5,785) (6,709)
Cash flows from financing activities:    
Proceeds from the issuance of common stock 1,095,000 3,923,100
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 $ 1,125,000 5,448,692
NET INCREASE IN CASH 549,980 1,655,277
Cash at the beginning of the year 35,696 222,410
Cash at the end of the period 585,676 1,877,687
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 $ 763,110  
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest   $ 188,382
Cash paid for income taxes