• Filing Date: 2014-04-14
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.8
Statement - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash Flows from Operating Activities:    
Net Loss $ (4,148,088) $ (1,845,323)
Adjustments to reconcile net loss to net cash used in Operating activities:    
Depreciation and amortization 51,663 61,172
Amortization of discounts and deferred financing costs 854,149 354,398
Impairment of intangible assets    27,044
Bad debt expense 24,917   
Inventory obsolescence 244,540   
Stock and warrants issued as payment for services    153,110
Gain on settlement of liabilities (192,142) 27,437
Series D issued for services 925,787   
Common stock issued for services 275,927   
Common stock issued for loan extensions 16,612 45,748
Warrant expense 287,599 628,787
Re-acquisition of distributorship    907,872
True-up related to warrants issued in 2011 489,614   
Recognition of deferred compensation related to vested options 86,350 309,450
Gain on fair market value of derivative liabilities (365,496) (4,651,061)
Increase in allowance for uncollectible notes receivable    1,993,233
Gain on Joint Venture    27,137
Convertible debt issued for settlements 90,000   
Changes in assets and liabilities:    
(Increase) decrease in accounts receivable (42,499) 83,271
(Increase) decrease in inventory (97,831) (160,880)
(Increase) decrease in employee advances 8,212 15,308
(Increase) decrease in accrued interest receivable    (166,538)
(Increase) decrease in prepaids and other assets (64,897) (11,306)
Increase (decrease) in allowance for uncollectible interest    170,899
Increase (decrease) in accrued royalties and dividends (428,238) 375,000
Increase (decrease) in accounts payable (67,965) 200,401
Increase (decrease) in accrued liabilities (21,838) (26,299)
Increase (decrease) in accrued interest payable 251,643 254,959
Net cash flows used in operating activities (1,821,981) (1,226,181)
Cash flows from investing activities:    
Purchase of property and equipment (29,892)   
Proceeds from notes receivable - related parties    371,839
Net cash flows (used in) provided by investing activities (29,892) 371,839
Cash flows from financing activities:    
Borrowings on debt 290,244 2,110,700
Payments on debt (662,169) (1,676,853)
Borrowings on convertible debt, net of original issue discounts 1,817,400 347,500
Payments on convertible debt (331,500)   
Cash paid for debt issuance costs (9,200)   
Cash proceeds from sale of common stock    100,000
Cash proceeds from sale of series C stock 740,030   
Proceeds from exercise of warrants 5,760 15,248
Net cash flows provided by financing activities 1,850,565 896,595
(Decrease) increase in cash (1,308) 42,253
Cash and cash equivalents, beginning of period 45,861 3,608
Cash and cash equivalents, end of period 44,553 45,861
Cash paid during the period for:    
Interest 130,147 31,661
Income Taxes      
Supplemental non-cash investing and financing activities:    
Common stock issued for conversion of debt and interest 406,645 1,736,066
Series C preferred stock issued for conversion of related party debt and interest 348,600   
Series C preferred stock issued for conversion of debt and interest 1,587,600   
Resolution of derivative liabilities due to warrant exercise 48,630   
Resolution of derivative liabilities due to debt conversions 1,311,702   
Warrants reclassed to derivative liabilities 812,705   
Debt discounts due to derivative liabilities 617,399   
Debt discounts due to warrants issued with debt 51,643   
Debt discounts due to beneficial conversion feature 25,000   
Reversal of deferred compensation due to forfeiture of nonvested options 184,800   
Write-off of deferred compensation $ 38,300