Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
OPERATING ACTIVITIES    
Net income (loss) $ (118,416) $ 682,533
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:    
Depreciation and amortization 217,306 137,000
Amortization of debt discount 589,474 0
Loss on equity investment 38,552 0
Stock issued pursuant to employment agreement 2,825 0
Change in operating assets and liabilities:    
Prepaid expenses and other current assets (114,513) 0
Prepaid inventory (786,116) (194,206)
Inventory 81,332 (504,550)
Accounts receivable (825,227) (1,082,375)
Accounts payable and accrued expenses 22,658 280,538
Net cash used in operating activities (892,125) (681,060)
INVESTING ACTIVITIES    
Cash received on acquisition 0 50,775
Purchase of equipment (9,295) 0
Repayment of principal on note receivable 47,300 0
Investment in Kanalife Sciences 0 (250,000)
Net cash flows from (used in) investing activities 38,005 (199,225)
FINANCING ACTIVITIES    
Common stock issued for cash 7,075,000 0
Proceeds from (payment of) loan from Roen Ventures (92,069) 1,080,500
Repayment of loan from related party (300) (500)
Net cash flows from financing activities 6,982,631 1,080,000
Net increase in cash 6,128,511 199,715
Cash, beginning of period 2,243,670 431
Cash, end of period 8,372,181 200,146
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 from PhytoSPHERE agreement 0 (6,927,640)
Common Shares issued for acquisition 0 (1,092,360)
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
Supplemental cash flow disclosures:    
Interest paid 187,453 0
Taxes paid $ 33,361 $ 0