Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 1 Months Ended 11 Months Ended 12 Months Ended
Dec. 31, 2016
Nov. 30, 2016
Dec. 31, 2017
Successor [Member]      
Cash flows from operating activities:      
Net loss $ (199,142)   $ (4,251,264)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities      
Stock based compensation issued to employees 24,302   16,920
Stock based compensation - related party   45,391
Preferred share issued to CEO - related party   270,000
Depreciation expense 228   13,712
Amortization expense 16,568   222,081
Interest expense in conjunction with debt issuance   368,778
Accretion of debt discount 64,869   415,237
Change in derivative liabilities (68,331)   (86,856)
Change in warrant liabilities (3,612)   181,896
Modification of warrant and derivative liabilities   238,935
Loss on extinguishment of debt   691,361
Estimated fair market value of stock issued for services 2,084   811,301
Changes in operating assets and liabilities:      
Accounts receivable   (9,730)
Inventory   (2,538)
Prepaid expenses 733   (15,086)
Accounts payable 31,940   177,068
Due to related party 28,633   280,687
Accrued compensation - related party 21,667   260,000
Common stock payable   79,625
Deferred revenue 78,820   2,635
Estimated fair value of contingent payments, net   (136,554)
Other current liabilities 2,929   26,398
Net cash (used in) provided by operating activities 1,688   (400,003)
Cash flows from investing activities:      
Acquisition of intangible assets (27,136)   (78,128)
Purchases of computer equipment   (940)
Net cash used in investing activities (27,136)   (79,068)
Cash flows from financing activities:      
Proceeds from short-term convertible notes   250,005
Proceeds from short-term notes, net of debt issuance costs   149,504
Repayments of short term notes   (60,453)
Proceeds from short-term notes - related party  
Net cash provided by financing activities   339,056
Net decrease in cash (25,448)   (140,015)
Cash at beginning of period 175,055   149,607
Cash at end of period 149,607 $ 175,055 9,592
Cash paid during the period for:      
Interest  
Income taxes   800
Non-cash investing and financing activities:      
Common stock issued for payment of accounts payable   14,985
Common stock issued in conjunction with notes payable   105,000
Common stock issued to third party in conjunction with debt issuance   163,171
Warrants issued to third party in conjunction with debt issuance   290,612
Embedded derivative issued in conjunction with notes payable   165,000
Reclassification of warrants to equity   1,422,459
Intangibles acquired in conjunction with acquisition of CCI 680,000  
Goodwill acquired in conjunction with acquisition of CCI 481,947  
Equipment acquired in conjunction with acquisition of CCI $ 32,564  
Common stock issued in conjunction with acquisition of CCI 770,000  
Estimated fair value of contingent payments issued in conjunction with acquisition of CCI $ 424,511  
Total debt discount at origination  
Predecessor [Member]      
Cash flows from operating activities:      
Net loss   (632,388)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities      
Stock based compensation issued to employees    
Stock based compensation - related party    
Preferred share issued to CEO - related party    
Depreciation expense   7,080  
Amortization expense   62,581  
Interest expense in conjunction with debt issuance    
Accretion of debt discount   31,500  
Change in derivative liabilities    
Change in warrant liabilities    
Modification of warrant and derivative liabilities    
Loss on extinguishment of debt    
Estimated fair market value of stock issued for services    
Changes in operating assets and liabilities:      
Accounts receivable   5,335  
Inventory   1,173  
Prepaid expenses   3,902  
Accounts payable   302,263  
Due to related party    
Accrued compensation - related party    
Common stock payable    
Deferred revenue   38,189  
Estimated fair value of contingent payments, net    
Other current liabilities   47,623  
Net cash (used in) provided by operating activities   (132,742)  
Cash flows from investing activities:      
Acquisition of intangible assets   (90,855)  
Purchases of computer equipment   (128)  
Net cash used in investing activities   (90,983)  
Cash flows from financing activities:      
Proceeds from short-term convertible notes    
Proceeds from short-term notes, net of debt issuance costs   225,600  
Repayments of short term notes   (174,338)  
Proceeds from short-term notes - related party   157,442  
Net cash provided by financing activities   208,704  
Net decrease in cash   (15,021)  
Cash at beginning of period $ 27,311 42,332  
Cash at end of period   27,311  
Cash paid during the period for:      
Interest   448  
Income taxes    
Non-cash investing and financing activities:      
Common stock issued for payment of accounts payable    
Common stock issued in conjunction with notes payable    
Common stock issued to third party in conjunction with debt issuance    
Warrants issued to third party in conjunction with debt issuance    
Embedded derivative issued in conjunction with notes payable    
Reclassification of warrants to equity    
Intangibles acquired in conjunction with acquisition of CCI    
Goodwill acquired in conjunction with acquisition of CCI    
Equipment acquired in conjunction with acquisition of CCI    
Common stock issued in conjunction with acquisition of CCI    
Estimated fair value of contingent payments issued in conjunction with acquisition of CCI    
Total debt discount at origination   $ 31,500