CV Sciences, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES
Net loss	$ (1,311,951)us-gaap_NetIncomeLoss	$ (2,300,196)us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	933,600us-gaap_DepreciationAndAmortization	767,254us-gaap_DepreciationAndAmortization
Amortization of debt discount	589,474	210,526
Stock issued pursuant to employment agreement	42,125	5,650
Stock-based compensation	7,915,833us-gaap_ShareBasedCompensation	0us-gaap_ShareBasedCompensation
Loss on equity investment	38,552	310,754
Gain on sale of equity investment	(7,899,306)	0
Bad debt expense	(300,000)us-gaap_ProvisionForDoubtfulAccounts	400,000us-gaap_ProvisionForDoubtfulAccounts
Other	34,816	0
Change in operating assets and liabilities:
Accounts receivable	1,205,952	(1,744,064)
Prepaid inventory	1,215,211	(474,321)
Inventory	(9,192,929)us-gaap_IncreaseDecreaseInInventories	(2,127,845)us-gaap_IncreaseDecreaseInInventories
Prepaid expenses and other current assets	(352,787)	(174,317)
Accounts payable	190,859	24,622
Accrued expenses	178,552	222,703
Net cash flows used in operating activities	(6,711,999)	(4,879,234)
INVESTING ACTIVITIES
Cash received on acquisition	0us-gaap_CashAcquiredFromAcquisition	50,775us-gaap_CashAcquiredFromAcquisition
Purchase of equipment	(449,211)	(226,594)
Cash paid on PhytoSPHERE agreement	0	(950,000)
Investment in KanaLife Sciences	0	(750,000)
Issuance of note receivable	(1,200,000)	0
Repayment of principal on Dixie note receivable	264,827	0
Net cash flows from investing activities	(1,384,384)	(1,875,819)
FINANCING ACTIVITIES
Common stock issued for cash	8,247,500	2,731,423
Proceeds from loan from Roen Ventures, LLC	0us-gaap_ProceedsFromNotesPayable	6,192,069us-gaap_ProceedsFromNotesPayable
Repayment of loan to Roen Ventures, LLC	(92,069)us-gaap_RepaymentsOfNotesPayable	(100,000)us-gaap_RepaymentsOfNotesPayable
Common stock to be issued	0canv_CommonStockToBeIssuedCashFlow	175,000canv_CommonStockToBeIssuedCashFlow
Repayment of loan from related party	(300)us-gaap_RepaymentsOfRelatedPartyDebt	(200)us-gaap_RepaymentsOfRelatedPartyDebt
Net cash flows from financing activities	8,155,131	8,998,292
Net increase in cash	58,748	2,243,239
Cash, beginning of year	2,243,670	431
Cash, end of year	2,302,418	2,243,670
Supplemental disclosures of non-cash transactions:
Value of debt discount	0canv_ValueOfDebtDiscount	800,000canv_ValueOfDebtDiscount
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	0canv_GoodwillNonCashTransaction	1,855,512canv_GoodwillNonCashTransaction
Intangible assets acquired from acquisition	0	4,110,000
Amount due to PhytoSPHERE Agreement	0canv_AmountDueToPhytosphereAgreement	(1,314,878)canv_AmountDueToPhytosphereAgreement
Common Shares issued for acquisition	0	7,070,000
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)canv_CommonStockToBeIssuedOther	0canv_CommonStockToBeIssuedOther
Common stock received in exchange for sale of investment	8,300,000	0
Supplemental cash flow disclosures:
Interest paid	187,453us-gaap_InterestPaid	0us-gaap_InterestPaid
Income taxes paid	$ 0us-gaap_IncomeTaxesPaid	$ 0us-gaap_IncomeTaxesPaid