Financials

v3.7.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Mar. 31, 2017
Dec. 31, 2016
Current assets:    
Cash $ 1,365,053 $ 77,979
Accounts receivable, net 1,297,585 1,467,580
Prepaid expenses and other current assets 206,444 216,642
Income tax refunds receivable 1,458,438 1,458,438
Total current assets 4,327,520 3,220,639
Property and equipment, net 3,594,579 3,096,602
Deposits 159,557 165,152
Other assets 231,268 0
Total assets 8,312,924 6,482,393
Current liabilities:    
Accounts payable (includes related parties) 3,301,427 3,351,388
Accrued expenses 2,970,330 4,135,146
Income taxes payable 700,436 942,433
Current portion of notes payable 7,724,614 9,011,247
Current portion of notes payable, related party 243,500 328,500
Current portion of capital lease obligations 1,271,860 1,796,053
Total current liabilities 16,212,167 19,564,767
Other liabilities:    
Capital lease obligations, net of current portion 1,387,272 1,774,121
Derivative liabilities 56,046,310 29,401
Total liabilities 73,645,749 21,368,289
Stockholders' equity:    
Common stock, $0.01 par value, 500,000,000 shares authorized, 5,881,670 and 2,800,377 shares issued and outstanding 58,817 28,004
Additional paid-in-capital 44,953,912 45,726,862
Accumulated deficit (110,345,571) (60,640,864)
Total stockholders' deficit (65,332,825) (14,885,896)
Total liabilities and stockholders' deficit 8,312,924 6,482,393
Series G Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock 2 2
Series H Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock $ 15 $ 100

Source

v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues    
Net Revenues $ 1,176,113 $ 1,878,813
Operating expenses:    
Direct costs of revenue 292,304 564,200
General and administrative expenses 4,224,239 5,954,046
Sales and marketing expenses 314,866 873,440
Engineering expenses 380,197 522,768
Bad debt expense (2,911) 1,285
Depreciation and amortization 592,945 727,270
Total operating expenses 5,801,640 8,643,009
Loss from operations (4,625,527) (6,764,196)
Other income (expense):    
Other income 0 100,010
Change in fair value of derivative instruments 571,719 3,433,588
Interest expense (45,647,649) (1,013,413)
Total other (expense) income (45,075,930) 2,520,185
Loss before income taxes (49,701,457) (4,244,011)
Income tax expense 3,250 0
Net loss $ (49,704,707) $ (4,244,011)
Net loss per common share: Basic and diluted $ (10.15) $ (8.59)
Weighted average number of shares outstanding during the period - Basic and diluted 4,897,647 493,887

Source

v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows used in operating activities:    
Net loss $ (49,704,707) $ (4,244,011)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 592,945 727,270
Non-cash gain on derivative instruments (571,719) (3,433,588)
Stock issued for services 0 9,310
Stock-based compensation 35,215 0
Bad debt (recoveries) expense (2,911) 1,285
Non-cash interest expense 44,074,628 0
Amortization of debt discount 943,160 789,376
Non-cash settlement of debt (50,000) 0
(Gain) loss on extinguishment of debt 0 (100,000)
Changes in operating assets and liabilities:    
Accounts receivable 172,906 1,096,357
Prepaid expenses and other current assets 10,198 (126,863)
Security deposits 5,595 0
Accounts payable (49,961) (923,381)
Accrued expenses (1,164,816) (684,981)
Income tax assets and liabilities (241,997) (101,015)
Net cash used in operating activities (5,951,464) (6,990,241)
Cash flows used in investing activities:    
Purchase of property and equipment (1,090,922) (19,002)
Net cash used in investing activities (1,090,922) (19,002)
Cash flows provided by financing activities:    
Proceeds from issuance of related party notes payable and advances 3,395,000 3,000,000
Proceeds from issuance of notes payable and convertible debentures 9,892,500 5,000,000
Payments on related party notes payable and advances (3,430,000) (4,600,000)
Payments on notes payable (616,998) 0
Payments on capital lease obligations (911,042) (323,181)
Net cash provided by financing activities 8,329,460 3,076,819
Net increase (decrease) in cash 1,287,074 (3,932,424)
Cash at beginning of period 77,979 8,833,230
Cash at end of period $ 1,365,053 $ 4,900,806

Source