Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

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CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net Loss $ (906,730) $ (11,479,885) $ (9,315,340)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:      
(Gain) Loss on Fair Market Valuation of Derivatives (987,200) (2,597,950) 1,366,700
Loss on Fair Market Valuation of Contingent Consideration 77,286 4,426,047
Gain on Settlement of Contingent Consideration (4,991,571) (4,991,571)
Loss on Extinguishment of Debt 1,639,137 2,678,595 920,797
Amortization of Debt Discount 515,654 1,126,270 312,532
Deferred Tax Expense   49,000
Depreciation and Amortization   1,778,782 787,178
Warrants Issued with Common Stock and Debt   211,534
Stock Issued for Compensation   1,356,138
Stock Issued for Director Fees   221,973 60,550
Stock Issued for Services   591,359 20,727
Stock Option Expense   205,019 95,177
Equity Instruments Issued with Debt Greater than Debt Carrying Value   488,000
Change in Allowance for Doubtful Accounts   102,253
Changes in Operating Assets and Liabilities:      
Accounts Receivable   (36,279) (369,557)
Inventory   (1,323,742) (472,970)
Prepaid Expenses   (533,808) 257,238
Other Assets   (166,925)
Accounts Payable and Accrued Expenses   1,383,860 2,393,183
NET CASH USED IN OPERATING ACTIVITIES   (7,150,583) (3,304,532)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Cash Assumed in Acquisition   163,566
Purchase of Property, Equipment and Leasehold Improvements   (1,036,233) (1,988,587)
Purchase of Intangible Assets - Domain Names   (75,000)
NET CASH USED IN INVESTING ACTIVITIES   (1,036,233) (1,900,021)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from Issuance of Notes Payable   6,000,000 3,250,000
Cash Paid for Debt Discount   (180,000)
Proceeds from Issuance of Common Stock   3,750,000 3,208,134
Payment of Contingent Consideration   (2,088,000)
Cash Contribution from Non-Controlling Interest   86,550
NET CASH PROVIDED BY FINANCING ACTIVITIES   7,568,550 6,458,134
NET CHANGE IN CASH   (618,266) 1,253,581
Cash at Beginning of Period   9,749,572 418,082
CASH AT END OF PERIOD 9,131,306 9,131,306 1,671,663
SUPPLEMENTAL DISCLOSURE FOR OPERATING ACTIVITIES:      
Cash Paid for Interest   10,100
NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Settlement of Contingent Consideration 4,739,638 4,739,638
Gain on Settlement of Contingent Consideration Recorded Against Additional Paid-In Capital $ 4,692,697 4,692,697
Fair Value of Debt Discount Recorded   4,446,000 2,824,000
Issuance of Common Stock for Debt and Interest Expense   $ 8,564,324