Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:    
Net loss from continuing operations $ (26,212,371) $ (101,321,877)
Adjustments to reconcile net loss to net cash (used in) provided by operations:    
Depreciation and amortization 409,822 651,248
Stock-based compensation 17,300 661,286
Amortization of debt discount 5,003,653 7,072,228
Modification of warrants 9,464,991
Penalty for non-payment of debenture 595,440
Change in fair value of derivative instruments 105,076 95,616,653
Loss on sale of receivables to factor 656,949
Gain on disposal of equipment under capital lease (391,103)
Bargain purchase gain for hospitals and medical center (250,000) (7,732,302)
(Loss) income from discontinued operations (653,860) 275,216
Changes in operating assets and liabilities:    
Accounts receivable (2,114,913) (1,948,788)
Inventory 35,292 (39,689)
Prepaid expenses and other current assets (33,353) 13,122
Security deposits 39,227 5,263
Accounts payable and checks issued in excess of bank balance 4,019,026 637,865
Accrued expenses 3,290,128 1,519,732
Income tax assets and liabilities (45,000) (3,362)
Net cash used in operating activities of continuing operations (5,672,593) (4,984,508)
Net cash provided by (used in) operating activities of discontinued operations 153,483 (772,478)
Net cash used in operating activities (5,519,110) (5,756,986)
Cash flows from investing activities:    
Purchase of hospitals and medical center (658,537) (634,721)
Proceeds from the sale of equipment under capital lease 433,612
Purchase of property and equipment (43,715)
Net cash used in investing activities of continuing operations (702,252) (201,109)
Net cash provided by investing activities of discontinued operations 800,000
Net cash (used in) provided by investing activities (702,252) 598,891
Cash flows from financing activities:    
Proceeds from issuance of related party note payable and advances 9,099,126 3,100,000
Payments on related party note payable and advances (1,510,000) (2,500,000)
Proceeds from issuance of debentures 3,845,000 5,500,000
Payments on notes payable (5,005,513) (256,481)
Proceeds from receivables sold to factor 1,179,500
Receivables paid to factor (818,381)
Payments on finance lease obligations (143,926) (668,366)
Net cash provided by financing activities of continuing operations 6,645,806 5,175,153
Net cash used in financing activities of discontinued operations
Net cash provided by financing activities 6,645,806 5,175,153
Net increase in cash 424,444 17,058
Cash at beginning of period 6,870
Cash at end of period $ 431,314 $ 17,058