v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (2,008,918) $ (3,796,832)
Adjustments to reconcile net loss to cash used in operating activities:    
Share-based compensation 61,483 1,027,723
Depreciation and amortization 1,915 2,561
Loss on change of fair value of derivative liability 4,364
Amortization of debt discount 307,753 727,694
Interest expense on derivative liability that exceeds face value 96,541
Gain on extinguishment of debt and related derivative liability (243,716)
(Gain) loss on foreign currency exchange (6,796) 13,959
Unrealized loss on change in present value of royalty liabilities 66,027 50,901
Changes in operating assets and liabilities:    
Accounts receivable (360)
Inventory 2,906
Prepaid expenses (3,786) (27,445)
Accrued interest from notes receivable (59,693)
Accounts payable 265,408 200,837
Accounts payable and accrued liabilities - related parties 45,935 7,802
Accrued liabilities 86,089 (96,161)
Net cash used in operating activities (1,182,344) (2,091,465)
CASH FLOWS FROM INVESTING ACTIVITIES    
Cash paid for note receivables (36,771)
Cash paid for purchase of fixed assets (1,245) (774)
Net cash used in investing activities (1,245) (37,545)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of notes payable (243,029) (806,500)
Proceeds from convertible debentures 469,800 1,515,000
Proceeds from convertible note - related party 300,000
Proceeds from demand note - related party 592,650 1,235,000
Net cash provided by financing activities 1,119,421 1,943,500
Decrease in cash during the period (64,168) (185,510)
Cash, beginning of the period 66,118 313,333
Cash, end of the period 1,950 127,823
SUPPLEMENTAL CASH FLOWS INFORMATION    
Income taxes paid
Interest paid 25,000 41,053
NON-CASH INVESTING AND FINANCING TRANSACTIONS    
Common shares issued for extinguishment of debt and related derivative liability 25,000 495,816
Extinguishment of related party debt and derivative liability as contributed capital 13,508
Debt discount for relative fair value of warrants attached to convertible debentures 3,334 39,232
Debt discount for relative fair value of royalty liabilities attached to convertible debentures 623,405 991,386
Stock payable issued for conversion of convertible debenture 400,082
Common shares issued for stock payable 3,926,976
Derivative liability related to convertible debentures $ 288,676

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