Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash Flows for Operating Activities:    
Net Loss $ (3,687,047) $ (3,296,862)
Adjustments to reconcile net loss to net cash used by operating activities:    
Stock and warrants issued for services rendered - related party 7,548 7,380
Stock and warrants issued for services rendered 1,095,064 315,305
Stock and warrants issued for financing costs 45,000 0
Warrants issued for Directors' Fees 10,588 9,912
Finance costs paid in stock and warrants - related party 0 384,111
Amortization of bond discount 949,117 964,969
Depreciation expense 12,500 12,500
Changes in assets and liabilities:    
(Increase) in prepaid expenses (21,523) (15,283)
(Decrease) in accounts payable (214,579) (38,661)
Increase in accrued liabilities 520,160 402,342
Net Cash (Used) by Operating Activities (1,283,172) (1,254,287)
Cash Flows from Investing Activities: 0 0
Cash Flow from Financing Activities:    
Repayment of Loan Payable, related party 0 (6,344)
Proceeds of Loan Payable, related party 42,316 159,235
Proceeds from issuance of 11% convertible debentures 1,250,000 1,067,500
Proceeds from sale of common stock and exercise of warrants 0 48,500
Net Cash Provided by Financing Activities 1,292,316 1,268,891
Increase in Cash 9,144 14,604
Cash at Beginning of Period 16,589 1,383
Cash at End of Period 25,733 15,987
Cash paid during the period for:    
Interest 0 0
Income Taxes 0 0
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Discounts on 11% convertible debentures 911,024 916,501
Convertible Debentures, converted into 250,000 shares of common stock $ 0 $ 30,000