Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows from Operating Activities    
Net loss $ (4,835,000) $ (4,000,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock based compensation expense 888,000 442,000
Issuance of common stock for services 0 48,000
Amortization of debt discount 1,661,000 1,594,000
Accrued interest 52,000 23,000
Loss on disposition of assets 0 3,000
Depreciation and amortization 19,000 7,000
Changes in operating assets and liabilities:    
Prepaid expenses and other current assets (6,000) 24,000
Accounts payable and accrued expenses 497,000 69,000
Accounts payable - license agreements 47,000 215,000
Accounts payable and accrued expenses - related parties (104,000) (56,000)
Deposits and other current liabilities (5,000) 5,000
Net cash used in operating activities (1,786,000) (1,626,000)
Cash flows from investing activities    
Purchase of equipment (49,000) (5,000)
Net cash used in investing activities (49,000) (5,000)
Cash flows from financing activities    
Net proceeds from private sale of restricted common stock 38,000 0
Net proceeds from issuance of convertible notes and warrants 1,469,000 1,418,000
Net proceeds from exercise of warrants and options 396,000 0
Net cash provided by financing activities 1,903,000 1,418,000
Net decrease in cash 68,000 (213,000)
Cash, beginning of period 136,000 349,000
Cash, end of period 204,000 136,000
Supplemental disclosures of cash flow information    
Cash paid during the year for: Interest 0 0
Cash paid during the year for: Income Taxes 1,600 1,600
Non-cash investing and financing activities    
Conversion of convertible debentures to common stock 1,528,000 1,491,000
Deposit exchanged to convertible note payable 0 25,000
Fair value of warrants and beneficial conversion feature associated with issued convertible notes $ 1,469,000 $ 1,443,000