Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (4,833,090) $ (9,471,567)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Gain) loss on fair market valuation of derivatives (1,407,200) $ 267,825
Amortization of debt discount 265,855  
Depreciation and amortization 319,819 $ 202,854
Warrants issued with common stock and debt $ 1,148,069 2,979,953
Stock issued for interest expense   203,624
Stock issued for services $ 104,166 397,500
Equity instruments issued with debt greater than debt carrying amount 561,000 2,560,000
Change in accounts receivable reserve 109,906 (1,391)
Changes in operating assets and liabilities:    
Accounts receivable (193,907) (112,955)
Prepaid expenses (36,735) $ (120,438)
Inventory $ 114,436  
Note receivable   $ 173,754
Deposits $ (40,468) (47,783)
Accounts payable 1,741,700 (592,756)
Net cash used in operations (2,146,449) (3,561,380)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment $ (163,710) (1,473,954)
Purchase of intangible assets - domain names   (11,500)
Net cash used in investing activities $ (163,710) (1,485,454)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of notes payable $ 1,650,000 3,721,053
Proceeds from issuance of notes payable to related parties   27,500
Payment on notes payable   (300,000)
Payments on notes payable to related parties   (130,000)
Proceeds from issuance of common stock and warrants and common stock subscribed $ 2,055,000 4,014,919
Proceeds from issuance of common stock from the exercise of warrants   293,420
Short swing profit payment   $ 67,100
Payments by subsidiaries for non-controlling interest $ (111,674)  
Net cash provided by financing activities 3,593,326 $ 7,693,992
NET CHANGE IN CASH AND CASH EQUIVALENTS 1,283,167 2,647,158
CASH AND CASH EQUIVALENTS, beginning of period 846,650 26,943
CASH AND CASH EQUIVALENTS, end of period $ 2,129,817 2,674,101
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES    
Cash paid for interest   285,371
SUPPLEMENTAL DISCLOSURE FOR FINANCING ACTIVITIES    
Warrant expense $ 1,148,069 $ 2,979,953