Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (342,088) $ 198,215
Adjustments to reconcile net income (loss) to netcash provided by (used by) operating activities:    
Depreciation and amortization 15,431 13,450
Amortization of discount on investment in account receivable (18,555) 0
Non-cash payment of expense 0 4,462
Accrued investment interest income (2,130) 0
Investment loss 2,698 0
Gain recognized on purchase of majority interest in WCI 0 (1,250,000)
Gain on conversion of investment in MicroCannaBiz to note receivable (35,360) 0
Decrease (increase) in operating assets    
Accounts receivable - trade 921 12,156
Prepaid expenses and other current assets 34,080 189,740
Increase (decrease) in operating liabilities    
Accounts payable (19,081) (17,037)
Accrued expenses (144,890) (16,099)
Deferred revenue 78,964 0
Accrued salary, retirement and benefits - related party 86,374 73,204
Net cash provided by (used by) operating activities (343,636) (791,908)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (10,603) (12,414)
Cost of securities purchased (1,061) (22,897)
Proceeds from securities sold 1,053 20,653
Receivable - Bhang Chocolate Company shareholders 0 (1,500,000)
Receipt of investment in receivable 117,000  
Investment in convertible note receivable 0 (100,000)
Proceeds from long term investment 0 1,150
Purchase of additional interest in WCI 0 (25,000)
Effect of deconsolidating MCB on April 27, 2015 and converting to note receivable (9,832) 0
Effect of consolidating WCI on January 1, 2014, net of cash 0 47,373
Employee advances repaid (850) 129
Net cash provided by (used by) investing activities 95,707 (1,591,006)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Warrants converted to common stock, net of costs 277,672 3,401,801
Common stock repurchased and retired (9,213) 0
Payments on long-term debt (10,423) (41,290)
Contribution by subsidiary minority interest 0 8,300
Non-controlling interest distribution (25,060) (116,480)
Shares retired 0 (162)
Net cash provided by (used by) financing activities 232,976 3,252,170
Net change in cash (14,953) 869,256
Beginning cash 326,228 40,184
Ending cash 311,275 909,440
SUPPLEMENTARY INFORMATION:    
Cash paid for interest 7,778 12,016
Cash paid for income taxes 0 1,895
NON-CASH INVESTING AND FINANCING TRANSACTION:    
Shareholder exercise of warrants by decrease in liability to shareholder 0 433,851
Shareholder assumption of warrant liability resulting in increased liability to shareholder (75,706) (12,295)
Investment in account receivable, net of discount, via exercise of warrants $ 547,353 $ 0