Financials

v3.5.0.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current assets:    
Cash $ 514,344 $ 8,833,230
Accounts receivable, net 2,655,132 8,149,484
Prepaid expenses and other current assets 771,527 1,193,077
Income tax refunds receivable 723,410 3,813,066
Total current assets 4,664,413 21,988,857
Property and equipment, net 5,053,790 7,148,295
Deposits 479,734 232,774
Total assets 10,197,937 29,369,926
Current liabilities:    
Accounts payable (includes related parties) 2,627,238 4,360,035
Accrued expenses 3,627,188 5,285,455
Income taxes payable 942,433 1,398,053
Current portion of notes payable 8,528,193 269,031
Current portion of notes payable, related party 1,368,500 5,133,888
Current portion of capital lease obligations 1,339,498 1,323,708
Total current liabilities 18,433,050 17,770,170
Other liabilities:    
Notes payable, net of current portion 0 2,903,898
Capital lease obligations, net of current portion 1,398,481 2,394,171
Derivative liabilities 404,492 7,495,486
Total liabilities 20,236,023 30,563,725
Commitments and contingencies
Stockholders' equity:    
Common stock, $0.01 par value, 500,000,000 shares authorized, 55,160,931 shares issued and outstanding at September 30, 2016, 50,000,000 shares authorized, 14,651,837 shares issued and outstanding at December 31, 2015 551,609 143,951
Additional paid-in-capital 39,552,927 26,688,837
Accumulated deficit (50,142,718) (28,027,177)
Total stockholders' deficit (10,038,086) (1,193,799)
Total liabilities and stockholders' deficit 10,197,937 29,369,926
Series B Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, 5,000,000 shares authorized: 0 50
Series C Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, 5,000,000 shares authorized: 0 90
Series E Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, 5,000,000 shares authorized: 0 450
Series G Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock, 5,000,000 shares authorized: $ 96 $ 0

Source

v3.5.0.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Revenues        
Net Revenues $ 290,004 $ 5,890,918 $ 5,222,529 $ 28,921,351
Operating expenses:        
Direct costs of revenue 336,023 1,866,741 1,290,326 8,566,372
General and administrative expenses 7,044,462 6,082,929 18,892,835 21,118,902
Sales and marketing expenses 570,788 784,763 2,034,499 3,106,551
Engineering expenses 546,525 0 1,636,702 0
Bad debt expense 3,666,707 0 3,668,092 99,754
Depreciation and amortization 702,275 728,572 2,131,232 1,979,006
Total operating expenses 12,866,780 9,463,005 29,653,686 34,870,585
Loss from operations (12,576,776) (3,572,087) (24,431,157) (5,949,234)
Other income (expense):        
Other income 127,008 0 227,020 23
Change in fair value of derivative instruments 2,087,041 190,000 6,813,701 190,000
(Loss) gain on legal settlement 0 0 (17,652) 275,028
Interest expense (1,646,712) (547,378) (4,707,453) (1,594,921)
Total other (expense) income 567,337 (357,378) 2,315,616 (1,129,870)
Loss before income taxes (12,009,439) (3,929,465) (22,115,541) (7,079,104)
Income tax benefit 0 (2,678,777) 0 (2,579,977)
Net loss (12,009,439) (1,250,688) (22,115,541) (4,499,127)
Preferred stock dividends 0 268,927 0 1,589,321
Net loss attributable to common stockholders $ (12,009,439) $ (1,519,615) $ (22,115,541) $ (6,088,448)
Net loss per common share: Basic and diluted $ (.29) $ (.05) $ (.94) $ (.21)
Weighted average number of shares outstanding during the period - Basic and diluted 41,313,448 30,955,483 23,574,845 29,064,792

Source

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows used in operating activities:    
Net loss $ (22,115,541) $ (4,499,127)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 2,131,232 1,979,006
Non-cash gain on derivative instruments (6,813,701) (190,000)
Stock issued for services 9,310 2,905,001
Stock-based compensation 884,165 474,604
Bad debts 3,668,092 16,316,784
Accretion of beneficial conversion feature and debt discount 2,474,497 1,041,042
Gain on extinguishment of debt (100,000) 0
Gain on disposal of property and equipment (100,000) 0
Gain on legal settlement 0 (275,028)
Changes in operating assets and liabilities:    
Accounts receivable 1,826,261 (21,627,221)
Prepaid expenses and other current assets 171,550 (674,852)
Security deposits 3,040 (42,122)
Accounts payable (1,782,266) 1,556,626
Accrued expenses 500,881 1,576,688
Income tax assets and liabilities 2,202,206 (4,509,565)
Deferred tax assets and liabilities 0 90,321
Net cash used in operating activities (17,040,274) (5,877,843)
Cash flows provided by (used in) investing activities:    
Purchase of property and equipment (36,727) (359,690)
Proceeds from the sale of property and equipment 100,000 0
Net cash provided by (used in) investing activities 63,273 (359,690)
Cash flows provided by financing activities:    
Dividends on Series B preferred stock 0 (1,589,321)
Proceeds from the issuance of common stock and warrants, net of offering costs 7,521,036 0
Proceeds from issuance of notes payable, related party 3,000,000 3,530,000
Proceeds from issuance of notes payable 5,394,500 3,000,000
Payments on notes payable, related party (6,000,000) (57,500)
Payments on capital lease obligations (827,421) (751,586)
Proceeds from related party advances 5,285,000 0
Payments on related party advances (5,715,000) 0
Net cash provided by financing activities 8,658,115 4,131,593
Net decrease in cash (8,318,886) (2,105,940)
Cash at beginning of period 8,833,230 2,406,246
Cash at end of period $ 514,344 $ 300,306

Source