Cash Flow

v3.6.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,501,137) $ (520,831)
Adjustments to reconcile net loss to net cash used in operating activities:    
Non-cash compensation 296,567 67,600
Loss on debt settlement 48,000
Gain on forgiveness of debt (597,312)
Depreciation expense 4,583
Amortization 1,248 1,248
Amortization of prepaid financing cost 412,370 175,333
Amortization of debt discount 425,374 58,676
Amortization of prepaid expenses 396,529
Amortization of warrant discount 141,940 63,426
Fair value of options expense 2,906
Fair value of warrants expense 30,626
Change in the fair value of derivative liability (62,418)
Derivative liability expense - insufficient shares 85,960
Non-cash interest expenses 144,208
Changes in operating assets and liabilities:    
Accounts receivable 75,455
Inventory 1,307,377 (71,376)
Prepaid expenses (166,139)
Prepaid financing costs (95,200)
Accounts payable and accrued liabilities (317,142) (304,854)
Preferred stock liability (100) 100
Payroll taxes, interest and penalties (30,210) 66,903
Accrued interest 153,111 287,552
Unearned revenue (1,362,009) 228,731
NET CASH (USED IN) OPERATING ACTIVITIES (2,052,385) (500,520)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of fixed assets (13,750)
NET CASH (USED IN) INVESTING ACTIVITIES (13,750)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from convertible notes payable, net of fees 3,377,940
Payments on debt settlement (16,795) (100,710)
Payments on convertible notes payable (27,500)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (16,795) 3,249,730
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,069,180) 2,735,460
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 2,175,543 128,968
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 106,363 2,864,428
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Interest paid 288,915 27,745
Taxes paid
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Issuance of shares of common stock for debt and accrued interest conversion 1,240,470 97,000
Debt discount on convertible notes 38,493
Fair value of warrant issued for debt discount and deferred financing cost 800,310
Derivative liability expense - insufficient shares 85,960
Common stock to be issued now issued 254,166
Initial derivative liability on the notes issuance date 182,701
Derivative liability reclass into additional paid in capital upon notes conversion 125,710 182,701
Proceed from convertible notes directly paid to accounts payable balance $ 78,050

Source