Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (893,808)	$ 139,173
Adjustments to reconcile net income (loss) to net cash used in operations:
Noncontrolling interests	(35,209)	(8,737)
Depreciation and amortization	$ 6,651	1,391
Stock issued for services and compensation		2,096
Amortization of prepaid license fee	$ 25,000	25,000
Gain on disposal of discontinued operations		(984,115)
Accretion of beneficial conversion feature on convertible notes payable as interest	$ 27,340	188,303
Change in derivative liability		63,700
Interest accrued on loans payable	$ 38,902	28,018
Changes in operating assets and liabilities:
Accounts receivable, net	(196,921)	(75,912)
Inventory	67,605	7,573
Prepaid expenses	$ 89,779	(603)
Security deposits		4,592
Bank overdraft, net	$ (1,601)	4,777
Due to related party		(10,120)
Accounts payable and accrued expenses	$ (197,578)	14,651
Accrued payroll and related liabilities	862,826	$ 228,714
Due to related party	(181,383)
Deferred revenue	(10,002)	$ 93,332
Net cash used in operating activities	(398,399)	$ (405,567)
Cash flows from investing activities:
Capital expenditures	(4,546)
Net cash used in investing activities	$ (4,546)
Cash flows from financing activities:
Proceeds from issuance of preferred stock		$ 95,000
Proceeds from preferred stock subscriptions		64,000
Proceeds from loans payable	$ 385,800	97,850
Proceeds from loans payable - related party	811	152,142
Net cash from financing activities	386,611	408,992
Net increase (decrease) in cash	(16,334)	3,425
Cash at beginning of period	$ 16,334	241
Cash at end of period		$ 3,666
Supplemental disclosure of cash flow information:
Cash paid for interest
Cash paid for taxes
Non-cash investing and financing activities:
Renewal of perpetual technology license agreement	$ 550,000
Issuance of 7,674,970,146 shares of common stock in conversion of loans payable, respectively		$ 428,418
Issuance of 17,000,000 shares of Series A preferred stock in conversion of loans payable		34,000
Issuance of 675,304,000 shares of common stock in conversion of loans payable - related parties		20,808
Issuance of 15,000,000 shares of common stock previously held as common stock issuable		4,500
Issuance of 63,449,999 shares of Series A preferred stock previously held as preferred stock issuable		147,000
Issuance of 1,820,000,000 shares of common stock in settlement of loans and accounts payable converted to Amounts payable in common stock, respectively		118,300
Beneficial conversion feature of convertible notes payable		$ 215,390

EAST COAST DIVERSIFIED CORP 10-Q