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, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net (loss) income $ (3,490,831) $ 1,204,343
Adjustment to reconcile net (loss) income to net cash used in operating activities:    
Amortization of debt discounts 1,075,998 956,321
Amortization of lease asset 5,000 0
Gain on sale of assets (18,300) 0
Common stock issued for officer bonus 379,916 194,700
Common stock issued for consulting expense 33,300 127,400
Gain on change in fair value of derivative liabilities 0 (4,825,687)
(Gain) loss on settlement of debt – related party 0 27,430
(Gain) loss on settlement of accounts payable (320,669) (529,132)
Gain on settlement of litigation 0 (121,000)
Debt issued for default and standstill fees 0 98,849
Changes in operating assets and liabilities:    
Increase in customer deposits 0 100,000
Increase in right to use assets (36,000) 0
Decrease in accounts payable (668,364) (152,545)
Increase in accrued expenses 1,126,736 945,765
Net Cash Used in Operating Activities (1,913,214) (1,973,556)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from the sale of fixed assets 18,300 0
Net Cash Used in Investing Activities 18,300 0
CASH FLOWS FROM FINANCING ACTIVITIES:    
Borrowings on convertible debt, net of original issue discounts – related party 1,692,300 1,817,105
Borrowings on related party debt 36,600 130,010
Borrowings on notes payable 7,500 0
Borrowings on convertible debt, net of original issue discounts 150,000 0
Payments on related party debt 0 (40,000)
Payment on convertible debt 0 (25,000)
Net Cash Provided by Financing Activities 1,886,400 1,882,115
NET CHANGE IN CASH AND CASH EQUIVALENTS (8,514) (91,441)
CASH AND CASH EQUIVALENTS - beginning of period 11,773 100,444
CASH AND CASH EQUIVALENTS - end of period 3,259 9,003
SUPPLEMENTAL DISCLOSURES:    
Cash paid for interest 0 0
Cash paid for income taxes 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Beneficial conversion feature on convertible debt – related party 1,343,488 445,083
Noncash Activity, Derivative Liabilities 0 1,105,486
Reclassification of derivatives to equity upon conversion 0 1,655,656
Reclassification of derivatives to equity upon release from tainting 0 12,652,754
Accrued wages converted to common stock 0 1,000,000
Accrued cash restructuring fees 0 80,490
Stock Issued for Conversion of Related Party Debt [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued for related party debt 280,507 1,936,687
Stock Issued for Settlement of Related Party Debt [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued for related party debt $ 0 $ 99,970