Financials

v3.8.0.1
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Current assets:    
Cash $ 41,019 $ 75,017
Accounts receivable, net 401,026 1,199,899
Prepaid expenses and other current assets 146,713 149,385
Inventory 73,732
Income tax refunds receivable 1,458,438 1,458,438
Current assets of AMSG classified as held for sale 68,775 337,900
Total current assets 2,189,703 3,220,639
Property and equipment, net 3,090,047 3,043,590
Deposits 157,461 141,402
Non-current assets of AMSG classified as held for sale 928,722 76,762
Total assets 6,365,933 6,482,393
Current liabilities:    
Accounts payable (includes related parties of $0.3 and $0.2 milion, respectively) 4,296,213 2,928,524
Accrued expenses 5,010,298 2,882,029
Income taxes payable 490,436 942,433
Current portion of notes payable 7,299,088 9,011,247
Current portion of notes payable, related party 223,500 328,500
Current portion of capital lease obligations 1,491,666 1,796,053
Current liabilities of AMSG classified as held for sale 1,368,612 1,675,981
Total current liabilities 20,179,813 19,564,767
Other liabilities:    
Debentures 4,239,005
Capital lease obligations, net of current portion 735,538 1,774,121
Derivative liabilities 2,803
Non-current liabilities of AMSG classified as held for sale 26,598
Total liabilities 25,154,356 21,368,289
Stockholders' deficit:    
Common stock, $0.01 par value, 500,000,000 shares authorized, 1,354,171 and 186,692 shares issued and outstanding 13,542 1,867
Additional paid-in-capital 126,335,119 45,752,999
Accumulated deficit (145,154,586) (60,640,864)
Total stockholders' deficit (18,788,423) (14,885,896)
Total liabilities and stockholders' deficit 6,365,933 6,482,393
Series G Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value 2 2
Series H Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value 100
Series F Preferred Stock [Member]    
Stockholders' deficit:    
Preferred stock value $ 17,500

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Income Statement [Abstract]        
Net revenues $ 1,414,211 $ 41,362 $ 3,312,476 $ 4,067,562
Operating expenses:        
Direct costs of revenue 309,347 305,157 849,632 1,128,060
General and administrative 5,169,478 6,497,718 12,978,349 17,142,263
Sales and marketing expenses 170,028 415,976 620,560 1,441,322
Bad debt 477,249 3,666,707 1,051,590 3,667,992
Depreciation and amortization 451,597 680,579 1,508,042 2,037,910
Total operating expenses 6,577,699 11,566,137 17,008,173 25,417,547
Loss from continuing operations before other income (expense) and income taxes (5,163,488) (11,524,775) (13,695,697) (21,349,985)
Other income (expense):        
Other income 40,455 127,008 91,212 227,020
Change in fair value of derivative instruments 1,827,112 (42,702,815) 6,553,772
Gain (loss) on extinguishment of debt 42,702,815
Loss on legal settlement (17,654)
Interest expense (5,331,681) (1,651,629) (16,510,525) (4,700,664)
Total other income (expense), net (5,291,226) 302,491 (16,419,313) 2,062,474
Net loss from continuing operations before income taxes (10,454,714) (11,222,284) (30,115,010) (19,287,511)
Provision for income taxes 372 3,622
Net loss from continuing operations (10,455,086) (11,222,284) (30,118,632) (19,287,511)
Net loss from discontinued operations (370,151) (787,155) (1,053,471) (2,828,030)
Net loss (10,825,237) (12,009,439) (31,172,103) (22,115,541)
Deemed dividend from trigger of down round provision feature (2,280,280) (53,341,619)
Net loss to common shareholders $ (13,105,517) $ (12,009,439) $ (84,513,722) $ (22,115,541)
Net loss per common share:        
Basic and diluted: continuing operations $ (10.59) $ (122.24) $ (112.12) $ (368.16)
Basic and diluted: discontinued operations (0.31) (8.57) (1.54) (53.98)
Total Basic and diluted $ (10.90) $ (130.81) $ (123.66) $ (422.14)
Weighted average number of common shares outstanding during the period:        
Basic and diluted 1,202,299 91,808 683,411 52,389

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows used in operating activities:    
Net loss from continuing operations $ (30,118,632) $ (19,287,511)
Adjustments to reconcile net loss to net cash used in operations:    
Depreciation and amortization 1,508,042 2,037,910
Non-cash gain on derivative instruments (6,653,774)
Stock issued for services 161,003 9,310
Stock-based compensation 34,081 884,165
Bad debt expense 1,051,590 3,667,992
Non-cash interest expense 8,441,043
Amortization of debt discount 6,228,352 2,474,497
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 (6,553,772)
Loss from discontinued operations (1,053,471) (2,828,030)
Changes in operating assets and liabilities:    
Accounts receivable (252,717) 1,878,086
Inventory (73,732)
Prepaid expenses and other current assets 2,672 236,612
Security deposits (16,059) 3,040
Accounts payable 1,367,689 (1,679,960)
Accrued expenses 2,081,876 331,797
Income tax assets and liabilities (451,997) 2,202,206
Net cash used in operating activities of continuing operations (11,140,260) (16,823,660)
Net cash used in discontinued operations (643,181) (216,614)
Net cash used in operating activities (11,783,441) (17,040,274)
Cash flows provided by (used in) investing activities:    
Purchase of property and equipment (1,554,499) (15,998)
Net cash used in investing activities of continuing operations (1,554,499) (15,998)
Net cash provided by investing activites of discontinued operations 1,936 79,271
Net cash provided by (used in) investing activities (1,552,563) 63,273
Cash flows provided by financing activities:    
Proceeds from the issuance of common stock and warrants, net of offering cost 7,521,036
Proceeds from issuance of related party notes payable and advances 3,805,000 8,285,000
Proceeds from issuance of notes payable and debentures 15,742,500 5,394,500
Payments on related party notes payable and advances (3,860,000) (6,000,000)
Payments on notes payable (1,042,524) (5,715,000)
Payments on capital lease obligations (1,342,970) (791,365)
Net cash provided by financing activities of continuing operations 13,302,006 8,694,171
Net cash used in financing activities of discontinued operations (36,056)
Net cash provided by financing activities 13,302,006 8,658,115
Net (decrease) in cash (33,998) (8,318,886)
Cash at beginning of period 75,017 8,833,230
Cash at end of period $ 41,019 $ 514,344

Source