Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,858,067) $ (2,327,124)
Adjustment to reconcile net loss to net cash used in operating activities:    
Depreciation expense 31,108 80,648
Amortization expense 32,250 32,250
Derivative liability movements (3,441,118) (283,667)
Amortization of debt discount 2,011,383 1,148,429
Loss on conversion of debt to equity 3,510,041 44,464
Convertible notes issued for services (221,820)
Shares issued for services 34,739
Stock based compensation 49,200
Changes in Assets and Liabilities    
Accounts receivable 27,001 (23,195)
Inventory 32,737 (304,605)
Recoverable IVA taxes and credits (68,389) 136,240
Other current assets (96,632) (80,227)
Other assets (3,759) (398)
Accounts payable and accrued expenses 46,383 55,205
IVA and other taxes payable 9,715 (191,068)
Advances from customers 46,209 75,176
Interest accruals 178,481 77,138
CASH USED IN OPERATING ACTIVITIES (1,680,538) (1,560,734)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (19,244) (367)
NET CASH USED IN INVESTING ACTIVITIES (19,244) (367)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from loans payable 267,491
Proceeds from short term notes and convertible notes 1,833,912 1,619,149
Proceeds from short term notes and convertible notes - related parties 369,915
Repayment of convertible notes (279,818) (235,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,821,585 1,754,064
Effect of exchange rate changes on cash and cash equivalents (100,578) (231,618)
NET INCREASE (DECREASE) IN CASH 21,225 (38,655)
CASH AT BEGINNING OF PERIOD 19,028 46,286
CASH AT END OF PERIOD 40,253 7,631
CASH PAID FOR INTEREST AND TAXES:    
Cash paid for income taxes
Cash paid for interest 48,818 57,172
NON CASH INVESTING AND FINANCING ACTIVITIES    
Notes payable including interest thereon converted to convertible notes payable (405,735) (592,623)
Convertible notes payable arising from conversion of notes payable (221,820) 592,623
Conversion of convertible debt to equity $ 5,741,021 $ 100,145