Cash Flows from Operating Activities




Cash flows used in operating activities during the nine months ended September
30, 2015 was $293,935 which consisted of a net loss of $3,448,598, non-cash
expenses and gains of $2,729,289 and positive changes in working capital of
$425,374. Net cash used in operating activities during the same period in 2014
was $584,299 which consisted of a net loss of $2,879,323, non-cash expenses and
gains of $2,415,187 and negative changes in working capital of $120,163. The
change in net cash used in operating activities was primarily due to a increase
in net loss of $569,275, increased non-cash losses from the excess fair value of
derivative liabilities being charged to interest expense and a greater change in
contracts receivable during the nine months ended September 30, 2015 compared to
the same period in 2014.