Financials

v3.7.0.1
Consolidated Balance Sheets - USD ($)
Dec. 31, 2016
Dec. 31, 2015
Current assets:    
Cash $ 77,979 $ 8,833,230
Accounts receivable, net 1,467,580 8,149,484
Prepaid expenses and other current assets 216,642 1,193,077
Income tax refunds receivable 1,458,438 3,813,066
Total current assets 3,220,639 21,988,857
Property and equipment, net 3,096,602 7,148,295
Deposits 165,152 232,774
Total assets 6,482,393 29,369,926
Current liabilities:    
Accounts payable (includes related parties) 3,351,388 4,360,035
Accrued expenses 4,135,147 5,285,455
Income taxes payable 942,433 1,398,053
Current portion of notes payable 9,011,247 269,031
Current portion of notes payable, related party 328,500 5,133,888
Current portion of capital lease obligation 1,796,053 1,323,708
Total current liabilities 19,564,768 17,770,170
Other liabilities:    
Notes payable, net of current portion 0 2,903,898
Capital lease obligations, net of current portion 1,774,121 2,394,171
Derivative liabilities 29,401 7,495,486
Total liabilities 21,368,289 30,563,725
Stockholders' deficit:    
Common stock, $0.01 par value, 500,000,000 and 50,000,000 shares authorized, 2,800,377 and 488,398 shares issued and outstanding 28,004 4,884
Additional paid-in-capital 45,726,862 26,827,904
Accumulated deficit (60,640,864) (28,027,177)
Total stockholders' deficit (14,885,896) (1,193,799)
Total liabilities and stockholders' deficit 6,482,393 29,369,926
Series B Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock, 100,000,000 shares authorized: 0 50
Series C Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock, 100,000,000 shares authorized: 0 90
Series E Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock, 100,000,000 shares authorized: 0 450
Series G Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock, 100,000,000 shares authorized: 2 0
Series H Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock, 100,000,000 shares authorized: $ 100 $ 0

Source

v3.7.0.1
Consolidated Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Net Revenues    
Net Revenues $ 5,245,111 $ 18,393,038
Operating expenses:    
Direct costs of revenue 1,695,233 9,339,644
General and administrative 23,695,381 27,346,160
Sales and marketing expenses 2,457,050 3,763,802
Engineering expenses 2,074,463 415,482
Bad debt 3,630,685 99,754
Impairment charges 1,038,285 20,143,320
Depreciation and amortization 3,046,902 2,749,850
Total operating expenses 37,637,999 63,858,012
Loss from operations (32,392,888) (45,464,974)
Other income (expense):    
Other income 127,021 252
Loss on disposal of property and equipment (153,234) 0
Change in fair value of derivative instruments 5,392,390 2,888,746
Gain on legal settlement 0 275,028
Interest expense (6,322,004) (2,689,811)
Total other income (955,827) 474,215
Loss before income taxes (33,348,715) (44,990,759)
Income tax benefit (735,028) (9,028,253)
Net income (32,613,687) (35,962,506)
Preferred stock dividends 0 1,627,188
Net loss attributable to common stockholders $ (32,613,687) $ (37,589,694)
Net income (loss) per common share: Basic and Diluted $ (30.17) $ (90.46)
Weighted average number of shares outstanding during the period - Basic and diluted 1,080,934 415,517

Source

v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows used in operating activities:    
Net loss $ (32,613,687) $ (35,962,506)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 3,046,902 2,749,850
Non-cash gain on derivative instruments (5,392,390) (2,888,746)
Stock issued for services 73,335 2,905,000
Stock-based compensation 1,107,487 722,829
Bad debts 3,630,685 99,754
Impairment charges 1,038,285 20,143,320
Accretion of beneficial conversion feature and debt discount 2,951,023 1,526,422
Non-cash charges related to capital leases 725,790 0
Gain on extinguishment of debt (100,000) 0
Gain on disposal of property and equipment 153,234 0
Gain on legal settlement 0 (275,028)
Changes in operating assets and liabilities:    
Accounts receivable 3,051,218 9,138,123
Prepaid expenses and other current assets 976,435 (927,024)
Security deposits (182,378) (45,279)
Accounts payable (905,637) 1,046,802
Accrued expenses 1,108,840 84,190
Income tax assets and liabilities 1,467,178 (10,502,959)
Deferred tax assets and liabilities 0 (376,609)
Net cash used in operating activities (19,863,680) (12,561,861)
Cash flows provided by (used in) investing activities:    
Purchase of property and equipment (36,728) (456,303)
Proceeds from the sale of property and equipment 100,000 0
Cash received in acquisitions 0 4,737,773
Net cash provided by investing activities 63,272 4,281,470
Cash flows provided by financing activities:    
Dividends on Series B preferred stock 0 (441,311)
Proceeds from the issuance of preferred stock, common stock and warrants, net of offering costs of $1,614,485 and $1,156,663 19,340,302 8,843,337
Redemption of preferred stock (8,346,150) 0
Proceeds from issuance related party notes payable and advances 10,000,567 5,630,000
Proceeds from issuance of notes payable 5,394,500 3,000,000
Payments on related party notes payable and advances (14,470,567) 0
Payments on notes payable 0 (1,218,459)
Payments on capital lease obligations (873,495) (1,106,192)
Net cash provided by financing activities 11,045,157 14,707,375
Net decrease in cash (8,755,251) 6,426,984
Cash at beginning of period 8,833,230 2,407,246
Cash at end of period $ 77,979 $ 8,833,230

Source