Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows provided by (used in) operating activities:    
Net loss $ (10,106,102) $ (3,248,439)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 1,428,957 1,250,434
Non-cash gain on derivative instruments (4,726,660) 0
Stock issued for services 9,310 2,400,000
Stock-based compensation 353,271 669,421
Bad debts 1,385 10,416,953
Accretion of beneficial conversion feature as interest 2,087,881 684,329
Gain on extinguishment of debt (100,000) 0
Gain on legal settlement 0 (275,028)
Changes in operating assets and liabilities:    
Accounts receivable 298,816 (15,424,348)
Prepaid expenses and other current assets (313,127) (401,961)
Security deposits (2,410) (41,057)
Accounts payable (584,595) 528,318
Accrued expenses (137,256) 1,355,035
Income tax assets and liabilities (101,029) (548,231)
Deferred tax assets and liabilities 0 76,200
Net cash used in operating activities (11,891,559) (2,558,374)
Cash flows used in investing activities:    
Purchase of property and equipment (41,356) (324,750)
Net cash used in investing activities (41,356) (324,750)
Cash flows provided by (used in) financing activities:    
Dividends on Series B preferred stock 0 (1,320,394)
Proceeds from issuance of notes payable, related party 3,000,000 3,030,000
Proceeds from issuance of notes payable 5,000,000 0
Payments on notes payable, related party (5,250,000) (57,500)
Payments on capital lease obligations (665,074) (474,305)
Proceeds from issuance of related party advances 3,165,000 0
Payments on related party advances (1,665,000) 0
Net cash provided by financing activities 3,584,926 1,177,801
Net decrease in cash (8,347,989) (1,705,323)
Cash at beginning of period 8,833,230 2,406,246
Cash at end of period $ 485,241 $ 700,923