Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,067,734) $ (4,630,994)
Adjustment to reconcile net loss to net cash used in operating activities:    
Depreciation expense 57,179 65,827
Impairment expense 21,415
Amortization expense 43,000 43,000
IVA receivable provision 187,232
Inventory provision 26,028
Derivative liability movements (4,129,793) 330,134
Amortization of debt discount 2,637,656 1,919,030
Loss on conversion of debt to equity 3,738,307 112,665
Convertible notes issued for services 119,974 221,072
Shares issued for services 34,739
Stock based compensation 131,781
Changes in Assets and Liabilities    
Accounts receivable (863) 25,361
Inventory 28,465 (228,939)
Recoverable IVA taxes and credits (69,083) 162,035
Other current assets 110,209 5,832
Other assets (3,434) 3,534
Accounts payable and accrued expenses 102,745 124,052
IVA and other taxes payable 11,839 (174,083)
Advances from customers 1,246 (20,034)
Interest accruals 310,801 107,899
CASH USED IN OPERATING ACTIVITIES (1,734,320) (1,907,581)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (291) (17,538)
NET CASH USED IN INVESTING ACTIVITIES (291) (17,538)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from loans payable 267,491 404,916
Proceeds from short term notes and convertible notes 2,021,867 1,832,253
Repayment of convertible notes (394,226) (235,000)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,895,132 2,002,169
Effect of exchange rate changes on cash and cash equivalents (108,255) (104,308)
NET INCREASE (DECREASE) IN CASH 52,266 (27,258)
CASH AT BEGINNING OF PERIOD 19,028 46,286
CASH AT END OF PERIOD 71,294 19,028
CASH PAID FOR INTEREST AND TAXES:    
Cash paid for income taxes
Cash paid for interest 61,007 54,707
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Notes payable including interest thereon converted to convertible notes payable 692,623
Conversion of convertible debt to equity 2,461,705 97,391
Inventory reclassed to fixed assets $ 146,774