Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (4,126,064) $ (2,076,514)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Gain) loss on fair market valuation of derivatives 1,160,700 (408,200)
Loss on extinguishment of debt 920,797
Amortization of debt discount 94,406 41,126
Depreciation and amortization 161,349 159,434
Stock issued for services 60,550 104,166
Stock option expense 47,589
Equity instruments issued with debt greater than debt carrying amount 224,000
Change in accounts receivable reserve (6,659) 50,832
Changes in operating assets and liabilities:    
Accounts receivable (55,413) (326,793)
Prepaid expenses 127,862 34,234
Inventory (310,991) 118,106
Deposits 3,892 (75,735)
Accounts payable 265,177 950,088
Net cash used in operations (1,656,805) (1,205,256)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (770,203) (43,212)
Purchase of intangible assets - domain names (50,000)
Net cash used in investing activities (820,203) (43,212)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of notes payable 750,000
Proceeds from issuance of common stock 3,208,134
Payments by subsidiaries for non-controlling interest (18,208) (73,511)
Net cash provided by financing activities 3,189,926 676,489
NET CHANGE IN CASH AND CASH EQUIVALENTS 712,918 (571,979)
CASH AND CASH EQUIVALENTS, beginning of period 418,082 846,650
CASH AND CASH EQUIVALENTS, end of period 1,131,000 274,671
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES    
Cash paid for interest $ 9,000