Financials

v3.7.0.1
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2017
Dec. 31, 2016
Current assets:    
Cash $ 27,704 $ 75,017
Accounts receivable, net 392,213 1,199,899
Prepaid expenses and other current assets 227,692 149,385
Income tax refunds receivable 1,458,438 1,458,438
Current assets of AMSG classified as held for sale 43,829 337,900
Total current assets 2,149,876 3,220,639
Property and equipment, net 3,381,232 3,043,590
Deposits 132,461 141,402
Non-current assets of AMSG classified as held for sale 23,750 76,762
Total assets 5,687,319 6,482,393
Current liabilities:    
Accounts payable (includes related parties) 3,252,858 2,928,524
Accrued expenses 2,803,004 2,882,029
Income taxes payable 443,630 790,627
Current portion of notes payable 7,624,614 9,011,247
Current portion of notes payable, related party 443,500 328,500
Current portion of debentures 1,578,028
Current portion of capital lease obligations 1,365,547 1,796,053
Current liabilities of AMSG classified as held for sale 1,625,260 1,827,787
Total current liabilities 19,136,441 19,564,767
Other liabilities:    
Debentures, net of current portion 3,003,931
Capital lease obligations, net of current portion 1,063,461 1,774,121
Derivative liabilities 2,803
Non-current liabilities of AMSG classified as held for sale 26,598
Total liabilities 23,203,833 21,368,289
Commitments and contingencies
Stockholders’ deficit:    
Common stock, $0.01 par value, 500,000,000 shares authorized, 13,408,360 and 2,800,377 shares issued and outstanding 134,084 28,004
Additional paid-in-capital 74,430,142 45,726,862
Accumulated deficit (92,080,742) (60,640,864)
Total stockholders’ deficit (17,516,514) (14,885,896)
Total liabilities and stockholders’ deficit 5,687,319 6,482,393
Series G Preferred Stock [Member]    
Stockholders’ deficit:    
Preferred stock value 2 2
Series H Preferred Stock [Member]    
Stockholders’ deficit:    
Preferred stock value $ 100

Source

v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]        
Net revenues $ 898,730 $ 2,565,272 $ 1,898,265 $ 4,026,200
Operating expenses:        
Direct costs of revenue 248,750 355,569 540,285 822,903
General and administrative 3,660,458 5,351,555 7,808,871 10,644,545
Sales and marketing expenses 197,727 433,329 450,532 1,025,346
Bad debt 577,252 574,341 1,285
Depreciation and amortization 471,954 678,141 1,056,445 1,357,331
Total operating expenses 5,156,141 6,818,594 10,430,474 13,851,410
Loss from continuing operations before other income (expense) and income taxes (4,257,411) (4,253,322) (8,532,209) (9,825,210)
Other income (expense):        
Other income 50,757 2 50,757 100,012
Change in fair value of derivative instruments 1,293,072 (11,093,012) 4,726,660
Gain on extinguishment of debt 11,093,012
(Loss) gain on legal settlement (17,652) (17,652)
Interest expense (6,135,982) (2,042,002) (11,178,844) (3,049,037)
Total other income (expense), net (6,085,225) (766,580) (11,128,087) 1,759,983
Net loss from continuing operations before income taxes (10,342,636) (5,019,902) (19,660,296) (8,065,227)
(Benefit) provision for income taxes 3,250
Net loss from continuing operations (10,342,636) (5,019,902) (19,663,546) (8,065,227)
Net loss from discontinued operations (335,573) (842,189) (683,320) (2,040,875)
Net loss (10,678,209) (5,862,091) (20,346,866) (10,106,102)
Deemed dividend from trigger of down round provision feature (11,093,012)
Net loss to common shareholders $ (10,678,209) $ (5,862,091) $ (31,439,878) $ (10,106,102)
Net loss per common share:        
Basic and diluted: continuing operations $ (1.37) $ (10.19) $ (4.93) $ (16.40)
Basic and diluted: discontinued operations (0.04) (1.71) (0.11) (4.15)
Total Basic and diluted $ (1.41) $ (11.90) $ (5.04) $ (20.55)
Weighted average number of common shares outstanding during the period:        
Basic and diluted 7,594,314 492,568 6,236,404 491,776

Source

v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows used in operating activities:    
Net loss $ (19,663,546) $ (8,065,227)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 1,056,445 1,357,331
Non-cash gain on derivative instruments (4,726,660)
Stock issued for services 9,310
Stock-based compensation 69,230 353,271
Bad debt (recoveries) expense 398,424 1,385
Non-cash interest expense 7,418,722
Amortization of debt discount 2,498,120 2,087,881
Non-cash settlement of debt (50,000)
Loss (gain) on extinguishment of debt (11,093,012)
Change in fair value of derivative instrument 11,093,012 (4,726,660)
Loss from discontinued operations (683,320) (2,040,875)
Changes in operating assets and liabilities:    
Accounts receivable 409,261 459,414
Prepaid expenses and other current assets (78,307) (267,320)
Security deposits 8,941 (2,410)
Accounts payable 325,329 (635,955)
Accrued expenses (79,025) (137,256)
Income tax assets and liabilities (346,997) (101,029)
Net cash used in operating activities of continuing operations (8,716,723) (11,808,140)
Net cash provided by (used in) discontinued operations 112,225 (83,419)
Net cash used in operating activities (8,604,498) (11,891,559)
Cash flows used in investing activities:    
Purchase of property and equipment (1,394,087) (15,998)
Net cash used in investing activities of continuing operations (1,394,087) (15,998)
Net cash provided by (used in) investing activities of discontinued operations 1,936 (25,358)
Net cash used in investing activities (1,392,151) (41,356)
Cash flows provided by financing activities:    
Proceeds from issuance of related party notes payable and advances 3,715,000 6,165,000
Proceeds from issuance of notes payable and debentures 11,642,500 5,000,000
Payments on related party notes payable and advances (3,550,000) (1,665,000)
Payments on notes payable (716,998) (5,250,000)
Payments on capital lease obligations (1,141,166) (665,074)
Net cash provided by financing activities 9,949,336 3,584,926
Net (decrease) in cash (47,313) (8,347,989)
Cash at beginning of period 75,017 8,833,230
Cash at end of period $ 27,704 $ 485,241

Source