During the three months ended March 31, 2016, we utilized cash in the amount of $11,663 for operating activities compared to utilizing cash of $7,645 for the three months ended March 31, 2015. Cash used in operating activity during the three months ended March 31, 2016 included a net loss of $27,932 compared to a net loss of $155,388 for the three months ended March 31, 2015. The net loss for the three months ended March 31, 2016 included non-cash depreciation expense of $357, and a charge of $505 for consulting fees. Accounts receivable decreased by $7,090 and accounts payable increased by $8,317. During the three months ended March 31, 2015 the net loss of $155,388 included the amortization of prepaid expenses of $27,625, depreciation of $431, a loss on derivative liability of $15, a charge of $116,687 as the loss on extinguishment of debt related to a $50,000 note payable and an increase in accounts payable of $2,985.
Investing Activities
We did not use any cash resources for investing activities during the three months ended March 31, 2016 and nor the three months ended March 31, 2015.
Financing Activities
During the three months ended March 31, 2016 the Company generated $30,000 from the sale of common shares compared to no such activity during the three months ended March 31, 2015.
Going Concern
During the three months, ended March 31, 2016, we incurred a net loss of $27,932, which included a non-cash depreciation cost of $357, cost of revenue of $3,322 and general and administrative costs of $31,202. We have an accumulated deficit of $773,497 since inception. We are in the early stage of operations, and have, only, recently commenced generating revenue which amounted to $7,217 for the three months ended March 31, 2016 compared to $2,500 for the three months ended March 31, 2015. We will continue to generate losses in the near future. These conditions raise substantial doubt about our ability to continue as a going concern.
These financial statements do not include adjustments relating to the recoverability and classification of reported asset amounts or the amount and classification of liabilities that might be necessary should we be unable to continue as a going concern. Our continuation as a going concern is dependent upon its ability to obtain additional financing or sale of its common stock and ultimately to attain profitability.
Management's plan, in this regard, is to raise additional financing through a combination of equity and debt financing. Management believes this will be sufficient to finance the continuing development for the next twelve months. However, there is no assurance that we will be successful in raising such financing.
Other than our lines of credit, we currently do not have any other arrangements for financing and we may not be able to obtain the financing required. Obtaining additional financing would be subject to a number of factors, including our ability to attract investments prior to consistent revenue generation, and thereafter our ability to grow our brand and for success in our market. We may also require additional financing to sustain our business operations if we are not successful in earning significant revenues once our business plan is enacted.
Critical Accounting Policies
Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States ("GAAP"). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.