Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows used in operating activities:    
Net loss $ (50,921,024) $ (22,624,648)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 1,715,321 2,415,048
Non-cash gain on derivative instruments (2,803) (5,392,390)
Stock issued for services 161,003 73,335
Stock-based compensation 303,046 1,107,487
Bad debts 1,531,257 2,055,002
Impairment charges 1,038,285
Non-cash interest expense 8,649,232
Amortization of debt discount 10,412,324 2,951,023
Non-cash charges related to capital leases 725,790
Non-cash settlement of debt (50,000)
Gain on extinguishment of debt (42,702,815)
Change in fair value of derivative instrument 42,702,815 (5,392,390)
Value of derivative liabilities 12,435,250
Gain on disposal of property and equipment 124,494
Loss from discontinued operations (4,276,918) (9,989,039)
Changes in operating assets and liabilities:    
Accounts receivable (1,451,224) 2,831,849
Prepaid expenses and other current assets 136,951 975,365
Inventory (236,914)
Security deposits (45,728) (182,678)
Accounts payable 1,674,969 (1,024,137)
Accrued expenses 1,245,165 1,118,795
Income tax assets and liabilities 546,752 1,467,178
Net cash used in operating activities of continuing operations (18,173,341) (22,429,241)
Net cash provided by operating activities of discontinued operations 459,794 2,565,561
Net cash used in operating activities (17,713,547) (19,863,680)
Cash flows provided by (used in) investing activities:    
Purchase of property and equipment (1,422,002) (14,123)
Proceeds from the sale of property and equipment (3,940)
Net cash used in investing activities of continuing operations (1,422,002) (18,063)
Net cash provided by investing activities of discontinued operations 929,465 81,335
Net cash (used in) provided by investing activities (492,537) 63,272
Cash flows provided by financing activities:    
Proceeds from issuance of common stock and warrants 639,615
Proceeds from the issuance of preferred stock, common stock and warrants, net of issuance costs of $1,614,485 19,340,302
Proceeds from issuance of Series I-1 Preferred Stock 4,000,000
Redemption of preferred stock (8,346,150)
Financing fees (25,000)
Proceeds from issuance of related party notes payable and advances 4,765,000 10,000,567
Proceeds from issuance of notes payable and debentures 15,742,500 5,394,500
Payments on related party notes payable and advances (5,298,782) (14,470,567)
Payments on capital lease obligations (1,680,747) (837,439)
Cash paid for fractional shares in connection with reverse stock split (6,675)
Net cash provided by financing activities of continuing operations 18,135,911 11,081,213
Net cash used in financing activities of discontinued operations (36,056)
Net cash provided by financing activities 18,135,911 11,045,157
Net decrease in cash (70,173) (8,755,251)
Cash at beginning of period 70,173 8,825,424
Cash at end of period $ 70,173