Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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