v3.5.0.2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (750,836)	$ (1,126,093)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	130,263	111,893
Amortization of debt discount	10,500	243,724
Depreciation expense	1,027	906
Options issued for services		46,463
Changes in operating assets and liabilities:
Decrease in inventory	66
Increase in deposits		(55,124)
(Decrease) in prepaid expenses	(593)	83,187
Increase in accounts payable, accrued payroll and related expenses	253,742	309,131
Net Cash Used In Operating Activities	(355,831)	(385,913)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for purchase of fixed assets		(31,975)
Net Cash Used In Investing Activities		(31,975)
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from related party	14,000
Repayments of related party advances	(7,500)
Proceeds from convertible note	60,000
Proceeds from convertible note - related party	30,000
Repayment of convertible note - related party	(30,000)
Proceeds from exercise of warrants	210,000	100,000
Proceeds from sale of securities	310,006	66,350
Net Cash Provided By Financing Activities	586,506	166,350
NET INCREASE / (DECREASE) IN CASH	230,675	(251,538)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	17,264	376,668
CASH AND CASH EQUIVALENTS AT END OF PERIOD	247,939	125,130
Supplemental cash flow information:
Cash paid for income taxes
Cash paid for interest expense
Supplemental disclosure of non-cash investing & financing activities:
Debt discount on convertible notes issued in the form of warrants	10,500
Prepaid stock based compensation	19,753
Stock issued for settlement of loan	$ 1,500

Represents information pertaining to discount on convertible notes issued warrants.

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Amount of noncash expense included in interest expense to amortize debt discount and premium associated with the related debt instruments. Excludes amortization of financing costs. Alternate captions include noncash interest expense.

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