Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.3.1.900
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Operating activities:    
Net loss $ (6,955,228) $ (5,179,241)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 362,626 $ 14,668
Impairment charges $ 1,387,100
Equity interests issued as payment of salary expense $ 62,500
Shares issued in connection with license agreement 300,000
Amortization of debt issuance costs $ 112,000
Amortization of debt discount $ 26,166
Share based compensation 1,623,398 $ 834,606
Effect of changes in operating assets and liabilities:    
Prepaid expenses and other current assets $ 148,931 $ (56,712)
Other assets
Accounts payable and accrued expenses $ 540,596 $ 183,291
Net cash used in operating activities (2,866,411) (3,728,888)
Investing activities:    
Purchase of property and equipment (62,029) $ (110,778)
Acquisition of Songstagram $ (43,900)
Deposit for booth equipment $ (199,428)
Net cash used in investing activities $ (105,929) (310,206)
Financing activities:    
Proceeds from capital contributions 595,000
Proceeds from convertible notes payable 1,500,000
Proceeds from sale of common stock from private placement 4,500,000
Payment of offering costs on private placement (671,640)
Issuance of note receivable (861,435)
Proceeds from notes payable $ 600,000 100,000
Proceeds from notes payable - related parties, net 1,403,242 $ (74,938)
Payment of notes payable (100,000)
Net cash provided by financing activities 1,903,242 $ 5,086,987
Net change in cash (1,069,098) 1,047,893
Cash, beginning of period 1,172,117 124,224
Cash, end of period 103,019 1,172,117
Supplemental disclosures of cash flow information:    
Cash paid for interest expense $ 11,250 $ 140,000
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing transactions:    
Note payable issued as payment for professional fees $ 125,000
Conversion of note receivable for the acquisition of Songstagram 861,435
Issuance of common stock in connection with settlement agreements 530,000
Officer salary paid pursuant to note payable - related party 189,000
Accounts payable paid pursuant to note payable - related party 101,901
Accrued interest converted to note payable - related party $ 45,641
Issuance of common stock as payment of offering costs $ 66
Increase in common stock from exchange agreement 1,165
Cancellation of common stock from exchange agreement (208)
Conversion of convertible notes and accrued interest into common stock $ 1,669,316