Annual report pursuant to Section 13 and 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Operating Activites:    
Net income (loss) $ 1,128,827 $ (3,376,775)
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation and amortization 12,607 12,298
Common stock issued for services 242,500
Options issued for services 483,884
Gain on sale of assets (180,248)
Change in derivative liabilities (4,193,081) 2,094,319
Restricted stock units issued for services 128,693 97,306
Unearned revenue - related party (156,000)
Interest expense from amortization of debt discount 53,564
Deferred rent 904 20,134
Changes in operating assets and liabilities:    
Accounts receivable (38)
Prepaid expenses and other current assets (11,705) (29,044)
Deferred contracted software development costs - related party 55,938
Escrow fund 79,855 (79,855)
Deposits 86,376 (44,876)
Accrued interest 321,824 8,040
Accounts payable and accrued expenses 314,115 (13,211)
Net Cash Used in Operating Activities (1,351,675) (1,591,974)
Investing Activities:    
Purchases of property and equipment (8,736)
Cash acquired in merger 420
Net Cash Used in Investing Activities (8,316)
Financing Activities:    
Proceeds from sale of Series A Preferred stock 1,500,004
Capital contributions 325,000
Proceeds from notes payable 25,000
Payments on notes payable (27,500)
Demand obligation payable - related party 116,883
Short-term advance - related party 57,400
Net proceeds from convertible notes payable 1,511,250
Net Cash Provided by Financing Activities 1,685,533 1,822,504
Net Increase in Cash 333,858 222,214
Cash - Beginning of Period 225,379 3,165
Cash - End of Period 559,237 225,379
Supplemental disclosure of non-cash investing and financing activities:    
Common stock issued for officers loans, related party notes and accrued interest 193,933
Conversion of Series C Preferred stock to common stock 1,130 2,385
Conversion of Series A-1 Preferred stock to common stock 545
Supplemental disclosure of cash flow information:    
Interest paid in cash 697 1,310
Income taxes paid in cash