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 ($)
 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