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
Operating Activites:    
Net income (loss) from continuing operations $ (2,111,398) $ 3,017,314
Net income (loss) from discontinued operations 670,248 (1,457,995)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 84,382 9,455
Common stock issued for services 228,233 242,500
Warrants and options issued for services 581,082 411,109
Change in derivative liabilities 153,156 (4,129,252)
Net cryptocurrencies received in lieu of cash (63,557)
Payments in cryptocurrencies for expenses 69,643
Loss recognized on disposition of cryptocurrencies 52,694
Restricted stock units issued for services 128,693
Interest expense from amortization of debt discount 50,533 40,658
Deferred rent 3,553
Gain on sale of subsidiary (670,428)
Changes in operating assets and liabilities:    
Accounts receivable (3,400) (86)
Interest receivable 329,054 211,965
Prepaid expenses and other current assets (35,244) (37,955)
Escrow fund 79,855
Deposits 78,000
Accrued interest 329,054 211,965
Accounts payable and accrued expenses (50,342) 258,928
Net Cash Used in Operating Activities (720,864) (1,143,258)
Investing Activities:    
Purchases of property and equipment (974,305)
Proceeds from sale of subsidiary net of subsidiary cash 99,495
Purchases of cryptocurrency (100,000)
Net Cash Used in Investing Activities (974,810)
Financing Activities:    
Net proceeds from convertible notes payable 1,150,000 677,500
Demand obligation payable - related party 90,000
Short-term advance - related party 57,400
Net proceeds from convertible notes payable - related party 95,000
Net Cash Provided by Financing Activities 1,150,000 919,900
Net Increase in Cash (545,674) (223,358)
Cash - Beginning of Period 559,237 225,379
Cash - End of Period 13,563 2,021
Supplemental disclosure of non-cash investing and financing activities:    
Issuance of Series E Preferred for Series A, A-1 and C Preferred and warrants 1,629,838
Issuance of Series E Preferred for convertible debt and accrued interest 939,966
Conversion of Series E Preferred stock to common stock 181,524
Conversion of Series C Preferred stock to common stock 1,130
Conversion of Series A-1 Preferred stock to common stock 545
Note receivable from sale of subsidiary 120,000
Supplemental disclosure of cash flow information:    
Interest paid in cash 346
Income taxes paid in cash