Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
CASH FLOW FROM OPERATING ACTIVITES:    
Net Loss for the Period $ (714,031) $ (8,238,575)
Adjustments to reconcile net loss to net cash used by operating activities:    
Stock based compensation 21,082
Depreciation 14,839 38,431
Consulting paid with options 119,707
License fees paid with warrants 6,501,715
Gain on extinguishment of debt (20,435) (62,859)
Loss on inventory 499,861  
Loss on conversion of debt 226,811
Loss on disposal of fixed assets 20,461 17,034
Amortization of debt discount 50,029
Change in fair value of derivative liability (3,042)
Changes in Operating Assets and Liabilities:    
Accounts receivable 158,482 (151,466)
Prepaids & other assets 84,132 11,521
Inventory 4,085 (359,053)
Accounts payable 194,703 387,405
Product returns & allowances (609,770) 609,770
Accrued expenses 318,604 206,314
Net Cash (Used) in Operating Activities (49,069) (620,092)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Net Cash Used by Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:    
Officer advances 115,429 20,953
Repayment of officer advance (56,574) (21,800)
Proceeds from notes payable 36,843 776,199
Payments on notes payable (87,114) (114,971)
Net Cash Provided by Financing Activities 8,584 660,381
Net Increase (decrease) in Cash (40,485) 40,289
Cash at Beginning of Period 40,485 196
Cash at End of Period 40,485
Cash paid during the year for:    
Interest
Franchise and income taxes
Supplemental disclosure of non-cash activities:    
Forgiveness of related party debt 359,453  
Forgiveness of accrued salary 388,180  
Stock granted for conversion of debt $ 301,000 $ 298,000