Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
OPERATING ACTIVITIES    
Net income $ 7,922,013 $ 334,399
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:    
Depreciation and amortization 444,658 342,500
Amortization of debt discount 589,474 0
Loss on equity investment 38,552 0
Gain on sale of equity investment (7,899,306) 0
Stock issued pursuant to employment agreement 35,075 0
Change in operating assets and liabilities:    
Prepaid expenses and other current assets 38,215 0
Prepaid inventory (1,019,029) 285,039
Inventory (1,399,166) (1,165,058)
Accounts receivable (513,051) (1,832,346)
Accounts payable and accrued expenses 729,507 47,657
Net cash used in operating activities (1,033,058) (1,987,809)
INVESTING ACTIVITIES    
Cash received on acquisition 0 50,775
Purchase of property and equipment (213,859) (17,027)
Cash paid for PhytoSPHERE agreement 0 (750,000)
Investment in Kanalife Sciences 0 (500,000)
Repayment of principal on note receivable 118,658 0
Net cash used in investing activities (95,201) (1,216,252)
FINANCING ACTIVITIES    
Common stock issued for cash 8,247,500 0
Proceeds from loan from Roen Ventures, LLC 0 3,280,500
Proceeds from (payment of) loan from Roen Ventures (92,069) 0
Repayment of loan from related party (300) (200)
Net cash provided by financing activities 8,155,131 3,280,300
Net increase in cash 7,026,872 76,239
Cash, beginning of period 2,243,670 431
Cash, end of period 9,270,452 76,670
Supplemental disclosures of non-cash transactions:    
Accounts receivable assumed from acquisition 0 396,438
Inventory assumed from acquisition 0 345,477
Prepaid inventory assumed from acquisition 0 1,260,510
Property and equipment assumed from acquisition 0 1,288
Goodwill 0 1,855,512
Intangible assets acquired from acquisition 0 4,110,000
Amount due to PhytoSPHERE agreement 0 (4,963,906)
Common shares issued for PhytoSPHERE Agreement 0 (2,306,094)
Conversion of line of credit - Roen Ventures, LLC to common stock 6,000,000 0
Conversion of accounts receivable to note receivable (600,000) 0
Common stock to be issued (175,000) 0
Common stock received in exchange for sale of investment 8,300,000 0
Supplemental cash flow disclosures:    
Interest paid 187,453 0
Taxes paid $ 44,766 $ 0