Statement of cash flows
Three Months Ended March 31,
2014
2013
Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)
Three Months Ended March 31,
2014
2013
Restated
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock issued for cash
$
-
230,824
(93,500)
-
Cash received from convertible notes payable
(376,320)
-
28,103
Payments made on convertible notes payable
(110,000)
-
(576)
12,881
-
3,500
(204,076)
275,308
(507,004)
81,390
657,673
13,514
$ (169,349)
Payments made to related parties
Adjustments to reconcile net income (loss) to net
cash from operating activities:
Depreciation and amortization expense
Amortization of debt discount and beneficial
conversion features
Expenses paid by related parties
Stock based compensation
Gain on extinguishment of debt
Stock issued for services
Changes in operating assets and liabilities:
Accounts receivable
Inventories
License fees receivable
Prepaid expenses and other current assets
Accounts payable and accrued liabilities
Deferred revenue
NET CASH USED IN OPERATING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment
Purchase of intangible assets
NET CASH USED IN INVESTING ACTIVITIES
12,141
35,610
95,776
4,374
17,588
(16,226)
-
21,802
(12,061)
19,023
(272,816)
10,407
36,692
40,173
212,259
(2,976)
(54,542)
(142)
91,364
(125,000)
(238,928)
(193,295)
Payments on capital leases
Exercising of warrants
NET CASH PROVIDED BY FINANCING ACTIVITIES
Net change in cash and cash equivalents
Cash and cash equivalents, at beginning of period
Cash and cash equivalents, at end of period
$
94,905
$
$
7,492
-
$
-
(623)
-
(64,000)
150,669
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest
Income taxes
(64,000)
-
$
(623)
13