Quarterly report pursuant to Section 13 or 15(d)

Consolidated Condensed Statements of Cash Flows (Unaudited)

v3.19.2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss $ (565,880) $ (4,676,645) $ (1,610,742) $ (7,079,465)
Adjustments to reconcile net loss to net cash (used in) operating activities:        
Depreciation 137,361 574,592 274,722 806,598
Amortization of patents and website     35,588 29,914
Realized (gain) loss on sale of digital currencies (25,052) 71,226 (24,444) 82,293
Change in fair value of warrant liability 38,570 (94,629) 76,304 (1,547,886)
Stock based compensation     412,475 457,382
Amortization of debt discount 345,256 2,290,028
Amortization of right-of-use assets     44,259
Bad debt allowance     6,826
Break-up fee - issuance of shares to GBV 2,850,000 2,850,000
Changes in operating assets and liabilities:        
Digital currencies     (586,459) (861,499)
Lease liability     (43,672)
Litigation liability     (2,150,000)
Prepaid expenses and other assets     122,853 (481,997)
Accounts payable and accrued expenses     (169,992) (7,345)
Net cash used in operating activities     (1,469,108) (5,605,151)
CASH FLOWS FROM INVESTING ACTIVITIES        
Sale of digital currencies     606,363 393,931
Acquisition of patents     (250,000)
Purchase of property and equipment     (5,254,713)
Net cash provided by (used in) investing activities     606,363 (5,110,782)
Effect of foreign exchange rate changes     15
Net decrease in cash and cash equivalents     (862,745) (10,715,918)
Cash and cash equivalents - beginning of period     2,551,171 14,948,529
Cash and cash equivalents - end of period $ 1,688,426 $ 4,232,611 1,688,426 4,232,611
Supplemental schedule of non-cash investing and financing activities:        
Par value adjustment due to reverse split     1
Conversion of Series E Preferred Stock to common stock     89
Common stock issued for acquisition of patents     960,000
Common stock issued for note conversion     3,055,588
Restricted stock issuance     11
Warrants exercised into common shares     $ 55,791