Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

v3.3.0.814
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (6,791,257) $ (18,993,015)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Gain) loss on fair market valuation of derivatives (1,779,600) $ (817,680)
Loss on extinguishment of debt 263,950
Amortization of debt discount 524,161
Depreciation and amortization 481,321 $ 310,473
Warrants issued with common stock and debt $ 1,148,069 5,038,986
Stock issued for interest expense 284,101
Stock issued for compensation $ 680,630 1,657,860
Stock issued for services 656,186 2,900,368
Equity instruments issued with debt greater than debt carrying amount 561,000 4,808,000
Change in accounts receivable reserve 169,683 (1,391)
Changes in operating assets and liabilities:    
Accounts receivable (440,850) (149,538)
Prepaid expenses (1,073) (85,924)
Inventory $ 5,793 (91,271)
Note receivable 173,754
Deposits $ (23,072) (152,547)
Accounts payable 1,138,463 (749,479)
Net cash used in operations (3,406,596) (5,867,303)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment $ (590,219) (1,989,237)
Purchase of intangible assets - domain names (11,500)
Net cash used in investing activities $ (590,219) (2,000,737)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of notes payable $ 1,650,000 7,344,737
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 $ 3,012,234 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 $ (144,433)
Net cash provided by financing activities 4,517,801 $ 11,317,676
NET CHANGE IN CASH AND CASH EQUIVALENTS 520,986 3,449,636
CASH AND CASH EQUIVALENTS, beginning of period 846,650 26,943
CASH AND CASH EQUIVALENTS, end of period $ 1,367,636 3,476,579
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITES    
Cash paid for interest 285,371
SUPPLEMENTAL DISCLOSURE FOR FINANCING ACTIVITIES    
Warrant expense $ 1,148,069 $ 5,038,986