Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (2,967,185) $ (173,021)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 4,626  
Stock-based compensation for employees 259,699  
Amortization of warrants and stock issued for services [1],[2] 459,316  
Change in fair value of the conversion rights of Series A preferred stock 700,000  
Changes in assets and liabilities:    
Prepaid expenses [1] 29,728 $ (16,029)
Other current assets $ 4,470  
Deposits and other assets    
Accounts payable [2] $ (113,601)  
Accrued payroll and related expenses $ 82,393  
Accrued license and patent reimbursement fees    
Stock subscription liability $ 288,000  
Accrued expenses and other liabilities (66,879) $ (172,436)
Net cash used in operating activities $ (1,319,433) $ (361,486)
Cash flows from investing activities:    
Purchases of property and equipment    
Net cash used in investing activities    
Cash flows from financing activities:    
Proceeds from common stock issuance, net $ 713,369 $ 889,980
Proceeds from Series A preferred stock issuance 1,000,000  
Net cash provided by financing activities 1,713,369 889,980
Net increase in cash and cash equivalents 393,936 528,494
Cash and cash equivalents, beginning of period 207,330  
Cash and cash equivalents, end of period $ 601,266 $ 528,494
Cash paid during the period for:    
Interest    
Income taxes $ 16  
[1] During the six months ended June 30, 2015, the Company issued 200,000 warrants to purchase shares of our common stock for consulting services. The warrants were valued at $328,650. The Company also issued shares of common stock for consulting services valued at $168,000. Such amounts were recorded as a Prepaid Expense and are being amortized over the service period.
[2] The Company issued 6,000 warrants at an exercise price of $2.50 to a service provider in exchange for extinguishment of $10,000 of trade accounts payable owed to this vendor.