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, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net Loss $ (2,667,051) $ (1,673,094)
Adjustments to reconcile net loss to net cash used in operations:    
Bad Debt Expense 15,000 798
Depreciation 13,955 14,248
Amortization of Debt Discount 321,056 260
Amortization 252,134 181,905
Stock option compensation expense 147,472 59,327
Impairment of Website Assets 95,773 70,531
Common stock issued for services 73,290 51,630
Product refund reserve 14,580
Changes in operating assets and liabilities:    
Accounts Receivable (144,144) (39,137)
Inventory (15,182) (277,442)
Prepaid expenses and other current assets (73,440) (23,629)
Other assets (118,436) (2,967)
Accounts payable 224,478 45,959
Net cash used in operating activities (1,860,515) (1,591,611)
Cash flows from investing activities:    
Purchase of fixed assets (61,651) (27,479)
Purchase of websites (607,463) (169,500)
Net cash used in investing activities (669,114) (196,979)
Cash flows from financing activities:    
Sale of common stock 800,000 1,010,001
Sale of Preferred stock 400,000
Proceeds from premium finance loan, net of repayment 1,237 4,540
Issuance of note payable 500,000
Long term Debt - Loan from related parties 975,000 200,000
Net cash provided by financing activities 2,276,237 1,614,541
Net decrease in cash (253,392) (174,049)
Cash at beginning of period 416,187 590,236
Cash at end of period 162,795 416,187
Supplemental Disclosure of Cash Flow Information    
Cash paid for interest 30,725 2,367
Cash paid for income taxes
Non-Cash Investing and financing activities    
Premium finance loan payable recorded as prepaid 84,825 87,212
Beneficial conversion debt discount to additional paid-in-capital 621,500 $ 78,000
Note payable issued for purchase of website 150,000  
Discount on note $ 32,732  
Common stock issued for the acquisition 200,000 350,000
Fair value of common stock issued for the acquisition $ 170,000 $ 262,500
Inventory 58,000  
Assumed liabilities $ 40,000  
Common stock issued to due Series A, Series B, and Series C stockholders 809,472 289,425
Conversion of stock shares issued of its Series A, Series B, Series C, and Series D Common Stock 5,100,000  
Conversion of stock shares issued of its Series A, Series B, Series C, and Series D preferred stock 5,100,000  
Shares issued on conversion of convertible notes 1,207,200  
Shares issued on conversion of convertible notes, value $ 600,000  
Conversion of interest due $ 3,600  
Shares of common stock retired   360,000
Cost of shares retired   $ 2,501
Common shares issued to stockholder   289,425
Fair market value of common shares issued to stockholder   $ 217,069