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 ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 12,597,000 $ 4,652,000
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation 1,000 1,000
Amortization of intangible assets 0 0
Stock compensation expense for options and warrants issued to employees and non-employees 5,812,000 1,820,000
Non-cash interest expense 1,697,000 7,717,000
Amortization of debt discounts 1,625,000 1,732,000
Change in value of warrant and derivative liabilities (25,930,000) (20,683,000)
Changes in operating assets and liabilities:    
Accounts receivable 0 0
Other assets 0 25,000
Accounts payable and accrued expenses 2,403,000 1,023,000
Net cash used in operating activities (1,795,000) (3,713,000)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repayment of note payable 0 0
Proceeds from notes payable 1,902,000 2,900,000
Net cash provided by financing activities 1,902,000 2,900,000
Minority Interest 0 0
NET DECREASE IN CASH AND CASH EQUIVALENTS 107,000 (813,000)
CASH AND CASH EQUIVALENTS - Beginning of period 47,000 855,000
CASH AND CASH EQUIVALENTS - End of period 154,000 42,000
Supplemental Disclosures:    
Interest paid 0 0
Income taxes paid 0 0
Supplemental non-cash activities    
Common stock issued upon conversion of convertible notes 1,794,000 0
Common stock issued upon conversion of accrued interest and penalty $ 346,000 $ 247,000