Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.8.0.1
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 (42,702,815)
Change in fair value of derivative instrument 42,702,815 (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