Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

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Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 1,204,343 $ 45,523,628
Adjustment to reconcile net income to net cash used in operating activities:    
Amortization of debt discounts 956,321 1,142,865
Shares issued for management bonus 194,700 0
Shares issued for debt transfer fees 127,400 0
Shares issued for services 0 6,927,686
Shares issued for standstill fees 0 1,608,679
Gain on change in fair value of derivative liabilities (4,825,687) (58,197,261)
Loss on settlement of related debt 27,430 0
Gain on settlement of account payable (529,132) 0
Gain on litigation settlement (121,000) 0
Debt issued for default and standstill fees 98,849 77,492
Changes in operating assets and liabilities:    
(Decrease) increase in accounts payable (152,545) 499,952
Increase in customer deposits 100,000 0
Increase in accrued expenses 945,765 387,843
Net Cash Used in Operating Activities (1,973,556) (2,029,116)
CASH FLOWS FROM INVESTING ACTIVITIES: 0 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
Borrowings on convertible debt, net of original issue discounts 1,817,105 2,053,603
Borrowings on related party debt 130,010 100,000
Borrowings on debt, net of original issue discounts 0 32,450
Payments on related party debt (40,000) (1,000)
Payments on convertible debt (25,000) (277,891)
Net Cash Provided by Financing Activities 1,882,115 1,907,162
NET CHANGE IN CASH AND CASH EQUIVALENTS (91,441) (121,954)
CASH AND CASH EQUIVALENTS - beginning of period 100,444 123,066
CASH AND CASH EQUIVALENTS - end of period 9,003 1,112
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 0 37,499
Cash paid for income taxes 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Noncash Activity, Derivative Liabilities 1,105,486 1,975,986
Common stock issued for convertible debt and interest 1,936,687 446,845
Common stock issued for settlement of related party debt 99,970 0
Reclassification of derivatives to equity upon conversion 1,655,656 428,257
Reclassification of derivatives to equity upon release from tainting 12,652,754 0
Beneficial conversion feature on convertible debt 445,083 0
Accrued interest transferred to debt 0 75,000
Accrued cash restructuring fees 80,490 54,180
Common stock cancelled and reissued to a third party 0 4
Accrued Wages [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Debt converted to common stock $ 1,000,000 $ 500,000