Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:    
Net loss $ (3,508,449) $ (2,550,969)
Adjustments to reconcile net loss to net cash used in operations:    
Loss on fair value of derivatives 342,360 669,970
Amortization of debt discounts 2,500
Depreciation and amortization 212,492 442
Stock compensation expense 358,292 836,840
Non cash interest expense 2,500
Gain on investment in undivided interest in real estate (4,816) (741)
Loss on debt extinguishment 44,393
Changes in operating assets and liabilities:    
Decrease (increase) in Accounts receivable (16,456) (2,699)
Decrease (increase) in Employee advances (18,779)
Decrease (increase) in Inventory (26,821) (18,651)
Decrease (increase) in Prepaid assets 60,489 28,878
Decrease (increase) in Accounts receivable, related party (79,739) (15,076)
Increase (decrease) in Accounts payable and accrued expenses (100,162) 109,181
Increase (decrease) in Officer salaries payable (32,741) 135,445
Increase (decrease) in Customer deposits 14,711
Increase (decrease) in Due to related party (38,946)
Increase (decrease) in Operating lease liabilities (110,586)
Net cash used in operating activities (1,682,111) (572,621)
Cash flows from investing activities:    
Payment of security deposit (23,481)
Purchase of office and computer equipment (46,274)
Net cash used in investing activities (69,755)
Cash flows from financing activities:    
Proceeds from issuance of note payable 21,000 32,600
Advances to stockholder, net 6,116 31,200
Proceeds from issuances of convertible notes payable, net of debt issuance costs 1,678,725 592,250
Repayments of note payable (36,784) (20,671)
Repayments of advances, stockholder (6,000)
Repayments of principal of convertible note payable (94,725)
Net cash provided by financing activities 1,669,057 534,654
Net decrease in cash (82,809) (37,967)
Cash, Beginning of period 87,826 84,720
Cash, End of period 5,017 46,753
Supplemental disclosure of cash flow information:    
Cash paid for interest 11,256 16,284
Cash paid for income taxes
Schedule of non-cash Investing or Financing Activity:    
Reclassification of derivative liabilities upon principal repayments of convertible notes 738,112 243,546
Intangible assets in accounts payable 536,000
Conversion of notes payable and accrued interest in common stock 389,738
Common stock issued for settlement of accounts payable 25,000
Operating lease right-of-use assets and liabilities $ 1,428,534