Quarterly report pursuant to Section 13 or 15(d)

Statements of Cash Flows (Unaudited)

Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (5,270,792) $ (4,338,507)
Adjustments to reconcile net loss to net cash used in operating activities:    
Technology access fee paid in convertible note payable to shareholder   3,126
Depreciation and amortization 53,342 55,402
Stock issued as compensation to non-employee directors 114,576 84,000
Stock-based compensation expense 307,630 384,992
Warrant issued in exchange for services 118,237  
Gain on sale of discontinued operations   (1,453,744)
Decrease in fair value of derivative liability (188,726)  
Changes in operating assets and liabilities:    
Prepaid expenses and other current assets (456,496) 198,557
Accounts payable and accrued expenses 317,179 (44,850)
Net cash used in operating activities (5,005,050) (5,111,024)
Cash flows from investing activities:    
Proceeds from sale of property and equipment   2,198
Purchase of property and equipment   (27,179)
Proceeds from payment of note receivable   450,000
Proceeds from sale of discontinued operations   1,250,000
Net cash provided by investing activities   1,675,019
Cash flows from financing activities:    
Payments on short-term notes payable (110,354) (112,770)
Net proceeds from issuance of convertible preferred stock and warrants 2,935,792  
Net proceeds from issuance of common stock   2,640,146
Proceeds from issuance of note payable to shareholder 2,400,000  
Proceeds from payment of stock subscription receivable 30,563 984,666
Restricted cash receipts, net (1,408,115)  
Net cash provided by financing activities 3,847,886 3,512,042
Net increase (decrease) in cash and cash equivalents (1,157,164) 76,037
Operating cash flows from discontinued operations   (42,761)
Cash and cash equivalents at beginning of period 4,080,618 5,083,355
Cash and cash equivalents at end of period 2,923,454 5,116,631
Supplemental disclosure of cash flow information:    
Interest paid 3,040 2,769
Non-cash investing and financing activities:    
Borrowings under short term notes payable for prepaid expense 172,047 161,125
Short-term note receivable from stockholder in exchange for the issuance of common stock   (2,000,000)
Par value of restricted shares issued 160 230
Par value of restricted shares forfeited   $ (20)
Fair market value of warrants issued for financial advisory services $ 118,237