Annual report pursuant to Section 13 and 15(d)

Unaudited Quarterly Data

v3.20.2
Unaudited Quarterly Data
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Data

NOTE 21. UNAUDITED QUARTERLY DATA

 

    Three months ended  
($ in thousands, except per share data)   March 31,
2019		     June 30,
2019		     September 30,
2019		     December 31,
2019		  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue   $ 3,123     $ 1,827     $ 1,657     $ 911  
Gross (loss) profit   $ (6 )   $ (139 )   $ 174     $ (51 )
Operating loss   $ (5,467 )   $ (5,145 )   $ (4,243 )   $ (10,208 )
Net (loss) income from continuing operations   $ (29,756 )   $ (10,209 )   $ (8,051 )   $ 18,322  
Net (loss) income   $ (25,484 )   $ (5,710 )   $ (2,727 )   $ 18,481  
Preferred stock dividends   $ (20 )   $ (20 )   $ (20 )   $ (20 )
Net (loss) income applicable to common shares   $ (25,504 )   $ (5,730 )   $ (2,747 )   $ 18,461  
Continuing operations (loss) income per common share – basic   $ (1.91 )   $ (0.55 )   $ (0.39 )   $ 0.87  
Continuing operations (loss) income per common share – diluted   $ (1.91 )   $ (0.55 )   $ (0.39 )   $ 0.60  
                                 
Net (loss) income per common share – basic   $ (1.63 )   $ (0.31 )   $ (0.13 )   $ 0.88  
Net (loss) income per common share – diluted   $ (1.63 )   $ (0.31 )   $ (0.13 )   $ 0.61  
                                 
Weighted average number of common shares outstanding – basic     15,588,749       18,449,541       20,721,616       21,117,727  
Weighted average number of common shares outstanding – basic     15,588,749       18,449,541       20,721,616       30,474,798  

 

    Three months ended  
($ in thousands, except per share data)   March 31,
2018		     June 30,
2018		     September 30,
2018		     December 31,
2018		  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue   $ 3,510     $ 3,249     $ 5,670     $ 2,674  
Gross profit   $ (233 )   $ 190     $ 2,065     $ (639 )
Operating loss   $ (5,075 )   $ (8,386 )   $ (20,916 )   $ (23,913 )
Net (loss) income from continuing operations   $ (5,444 )   $ 1,308     $ (21,005 )   $ (40,411 )
Net (loss) income   $ (1,084 )   $ 7,498     $ (12,987 )   $ (40,019 )
Preferred stock dividends   $ (20 )   $ (20 )   $ (20 )   $ (20 )
Net (loss) income applicable to common shares   $ (1,104 )   $ 7,478     $ (13,007 )   $ (40,039 )
Continuing operations (loss) income per common share – basic   $ (0.93 )   $ 0.20     $ (2.71 )   $ (3.82 )
Continuing operations (loss) income per common share – diluted   $ (0.93 )   $ 0.09     $ (2.71 )   $ (3.82 )
Net (loss) income per common share – basic   $ (0.19 )   $ 1.14     $ (1.68 )   $ (3.79 )
Net (loss) income per common share – diluted   $ (0.19 )   $ 0.50     $ (1.68 )   $ (3.79 )
Weighted average number of common shares outstanding – basic     5,851,288       6,601,865       7,745,537       10,577,376  
Weighted average number of common shares outstanding – diluted     5,851,288       14,996,607       7,745,537       10,577,376  

 

Explanatory Note:

 

The Company is providing quarterly and year-to-date unaudited consolidated financial information for interim periods occurring within years ended December 31, 2019 and 2018 in order to comply with SEC requirements.

 

The quarterly balance sheets are as follows:

 

    As of  
($ in thousands, except per share data)   March 31,
2019		     June 30,
2019		     September 30,
2019		  
    (unaudited)     (unaudited)     (unaudited)  
ASSETS                  
Current Assets:                        
Cash and cash equivalents   $ 267     $ 46     $ 55  
Accounts receivable, net     876       1,765       1,570  
Other current assets     448       565       474  
Assets of discontinued operation     149,516       151,369       127,771  
Total current assets     151,107       153,745       129,870  
                         
Property and equipment, net     2,978       2,762       2,605  
Right of use asset     2,097       1,294       1,168  
Total assets     156,182       157,801       133,643  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                        
Current Liabilities:                        
Accounts payable     3,384       2,878       2,925  
Accrued expenses and other current liabilities     5,807       7,898       7,289  
Senior notes payable, current portion net of original discount and deferred financing costs     49,518       49,451       47,844  
Convertible notes payable, net of original issue discount and deferred financing cost     3,282       4,305       5,046  
Merchant credit agreements, net of original issue discount and deferred financing cost     2,599       1,613       815  
Notes payable, current portion, net of original issue discount and deferred financing costs     7,964       8,876       10,134  
Notes payable, Benchmark Sellers, current portion     13,771       13,994       41,608  
Operating lease liabilities, current portion     776       596       613  
Debt derivative liability     7,836       6,250       4,705  
Warrant liability     2,163       1,744       5,631  
Liabilities of discontinued operation     98,741       105,888       83,508  
Total current liabilities     195,841       203,443       210,118  
                         
Notes payable and financing leases, non-current portion, net of original issue discount and deferred financing costs     1,002       504       436  
Notes payable, Benchmark Sellers, non-current net of debt discount     29,838       30,528       —  
Operating lease liabilities, non-current     1,577       842       685  
Total liabilities     228,258       235,317       211,239  
                         
Commitments and contingencies                        
                         
Stockholders’ Equity (Deficit):                        
Preferred stock; $0.01 par value, 5,000,000 shares authorized:     —       —       —  
Series A convertible preferred stock, $1,000 stated value, 4,500 shares designated and 500 shares issued and outstanding at March 31, June 30, and September 30, 2019, respectively     —       —       —  
Series A-1 convertible preferred stock, $1,000 stated value, 1,000 shares designated and 295 shares issued and outstanding at March 31, June 30, and September 30, 2019, respectively     —       —       —  
Series H convertible preferred stock, $0.001 stated value, 100 shares designated and -0-, -0- and 100 shares issued and outstanding at March 31, June 30, and September 30, 2019, respectively     —       —       —  
Common stock, $0.001 par value, 100,000,000 shares authorized and 18,449,541, 18,449,541 and 20,865,265 shares issued and outstanding at March 31, June 30, and September 30, 2019, respectively     18       18       21  
Additional paid-in capital     126,743       127,013       130,937  
Shares to be issued     1,280       1,280       —  
Accumulated deficit     (200,117 )     (205,827 )     (208,554 )
Total stockholders’ deficit     (72,076 )     (77,516 )     (77,596 )
Total liabilities and stockholders’ deficit   $ 156,182     $ 157,801     $ 133,643  

 

    As of  
($ in thousands, except per share data)   March 31,
2018		     June 30,
2018		     September 30,
2018		  
    (unaudited)     (unaudited)     (unaudited)  
ASSETS                  
Current Assets:                        
Cash and cash equivalents   $ 579     $ 1,106     $ 776  
Accounts receivable, net     1,933       2,069       1,789  
Other current assets     6,059       4,697       2,721  
Assets held for sale     145,647       143,445       141,348  
Total current assets     154,218       151,317       146,634  
                         
Property and equipment, net     6,588       6,725       6,441  
Total assets     160,806       158,042       153,075  
                         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)                        
Current Liabilities:                        
Accounts payable     3,805       3,065       2,862  
Accrued expenses and other current liabilities     4,878       6,268       6,362  
Senior notes payable, current portion net of original discount and deferred financing costs     25,807       28,210       30,858  
Convertible notes payable, net of original issue discount and deferred financing cost     3,548       4,576       9,387  
Merchant credit agreements, net of original issue discount and deferred financing cost     2,369       2,683       3,620  
Notes payable, current portion, net of original issue discount and deferred financing costs     4,148       4,455       3,507  
Notes payable, Benchmark Sellers, current portion     6,727       16,745       17,954  
Debt derivative liability     22,077       8,416       11,885  
Warrant liability     29,897       26,793       11,522  
Liabilities held for sale     72,802       72,504       67,194  
Total current liabilities     176,058       173,715       165,151  
                         
Notes payable, non-current portion     1,809       1,618       1,414  
Notes payable, Benchmark Sellers, non-current net of debt discount     39,523       27,775       28,463  
Total liabilities     217,390       203,108       195,028  
                         
Commitments and contingencies                        
                         
Stockholders’ Equity (Deficit):                        
Preferred stock; $0.01 par value, 5,000,000 shares authorized:     —       —       —  
Series A convertible preferred stock, $1,000 stated value, 4,500 shares designated and 500 shares issued and outstanding at March 31, June 30, and September 30, 2018, respectively     —       —       —  
Series A-1 convertible preferred stock, $1,000 stated value, 1,000 shares designated and 295 shares issued and outstanding at March 31, June 30, and September 30, 2018, respectively     —       —       —  
Series G convertible preferred stock, $0.001 stated value, 1,780 shares designated and 1,780, 1,780 and 1,780 shares issued and outstanding at March 31, June 30, and September 30, 2018, respectively     —       —       —  
Common stock, $0.001 par value, 100,000,000 shares authorized and 6,136,059, 7,225,158 and 8,605,021 shares issued and outstanding at March 31, June 30, and September 30, 2018, respectively     6       7       8  
Additional paid-in capital     66,228       76,553       92,652  
Shares to be issued     6,306       —       —  
Accumulated deficit     (129,124 )     (121,626 )     (134,613 )
Total stockholders’ deficit     (56,584 )     (45,066 )     (41,953 )
Total liabilities and stockholders’ deficit   $ 160,806     $ 158,042     $ 153,075  

 

The Company’s quarterly statement of operations are as follows:

 

    Three months ended,  
($ in thousands, except per share data)   June 30,
2019		     September 30,
2019		     December 31,
2019		  
    (unaudited)     (unaudited)     (unaudited)  
Revenues, net of discounts   $1,827     $1,657     $911  
Cost of revenues     1,966       1,483       962  
Gross (loss) profit     (139 )     174       (51 )
                         
Operating expenses                        
Compensation expense     1,653       1,794       885  
Selling, general and administrative expenses     4,071       2,621       4,447  
Loss on sale of asset     (718 )     2       1,116  
Loss on lease termination     —       —       3,708  
Total operating expenses     5,006       4,417       10,157  
Operating loss     (5,145 )     (4,243 )     (10,208 )
                         
Other expenses                        
Interest expense     (3,058 )     (3,724 )     (1,557 )
Amortization of deferred financing costs and debt discount     (3,656 )     (5,344 )     (943 )
Gain on debt derivative liability     435       1,990       (2,081 )
Gain on warrant liability     418       (1,182 )     (1,057 )
                         
Gain on trouble debt restructuring     554       4,362       2,659  
Gain on senior lender foreclosure     —       —       31,538  
Extinguishment gain     243       90       (29 )
Total other expenses, net     (5,064 )     (3,808 )     28,530 )
Loss before provision for income taxes     (10,209 )     (8,051 )     18,322  
Provision for income taxes     —       —       —  
Net loss from continuing operations     (10,209 )     (8,051 )     18,322  
Net income from discontinued operations     4,499       5,324       159  
Net (loss) income     (5,710 )     (2,727 )     18,481  
Preferred stock dividends     (20 )     (20 )     (20 )
Net loss attributable to common shareholders   $ (5,730 )   $ (2,747 )   $ 18,461  
                         
Continuing operations loss per common share:                        
Basic   $ (0.55 )   $ (0.39 )   $ 0.87  
 Diluted     (0.55 )   $ (0.39 )   $ 0.60  
Net (loss) income per common share:                        
Basic   $ (0.31 )   $ (0.13 )   $ 0.88  
Diluted     (0.31 )   $ (0.13 )   $ 0.61  
Weighted average number of common shares outstanding                        
Basic     18,449,541       20,721,616       21,117,727  
Diluted     18,449,541       20,721,616       30,474,798  

 

    Three months ended,  
($ in thousands, except per share data)   June 30,
2018		     September 30,
2018		     December 31,
2018		  
    (unaudited)     (unaudited)     (unaudited)  
Revenues, net of discounts   $ 3,249     $ 5,670     $ 2,674  
Cost of revenues     3,059       3,605       3,313  
Gross profit (loss)     190       2,065       (639 )
                         
Operating expenses                        
Compensation expense -selling general and administrative     3,361       15,296       8,076  
Selling, general and administrative expenses     5,262       7,685       15,198  
Loss on sale of asset     (47 )     —       —  
Total operating expenses     8,576       22,981       23,274  
Operating loss     (8,386 )     (20,916 )     (23,913 )
                         
Other expenses                        
Interest expense     (2,960 )     (2,214 )     (2,858 )
Amortization of deferred financing costs and debt discount     (7,144 )     (8,377 )     (24,601 )
Gain on debt derivative liability     6,313       (2,627 )     1,732  
(Loss) gain on warrant liability     2,748       14,787       7,964  
Other (expense) income, net     721       29       (93 )
Loss on issuance of notes     (1,591 )     (203 )     (737 )
Extinguishment gain     11,607       (1,484 )     2,095  
                         
Total other expenses, net     9,694       (89 )     (16,498 )
Loss before provision for income taxes     1,308       (21,005 )     (40,411 )
Provision for income taxes     —       —       —  
Net income (loss) from continuing operations     1,308       (21,005 )     (40,411 )
Net income from discontinued operations     6,190       8,018       392  
Net income (loss)     7,498       (12,987 )     (40,019 )
Preferred stock dividends     (20 )     (20 )     (20 )
Net income loss attributable to common shareholders   $ 7,478     $ (13,007 )   $ (40,039 )
                         
Continuing operations income (loss) per common share:                        
Basic   $ 0.20     $ (2.71 )   $ (3.82 )
Diluted   $ 0.09     $ (2.71 )   $ (3.82 )
Net income (loss) per common share:                        
Basic   $ 1.14     $ (1.68 )   $ (3.79 )
Diluted   $ 0.50     $ (1.68 )   $ (3.79 )
                         
Weighted average number of common shares outstanding                        
Basic     6,601,685       7,745,537       10,577,376  
Diluted     14,996,607       7,745,537       10,577,376  

 

The Company’s year-to-date statement of operations are as follows:

 

($ in thousands, except per share data)   Three months
ended
March 31,
2019		     Six months
ended
June 30,
2019		     Nine months
ended
September 30,
2019		  
    (unaudited)     (unaudited)     (unaudited)  
Revenues, net of discounts   $ 3,123     $ 4,950     $ 6,607  
Cost of revenues     3,129       5,095       6,578  
Gross (loss) profit     (6 )     (145 )     29  
                         
Operating expenses                        
Compensation expense -selling general and administrative     2,536       4,189       5,983  
Selling, general and administrative expenses     2,925       6,996       9,617  
Loss on sale of asset     —       (718 )     (716 )
Total operating expenses     5,461       10,467       14,884  
Operating loss     (5,467 )     (10,612 )     (14,855 )
                         
Other expenses                        
Interest expense     (2,016 )     (5,074 )     (8,798 )
Amortization of deferred financing costs and debt discount     (17,230 )     (20,886 )     (26,230 )
(Loss) gain on debt derivative liability     (1,945 )     (1,510 )     480  
Gain on warrant liability     1,395       1,813       631  
Other (expense) income, net     (287 )     (287 )     (287 )
Loss on issuance of notes     (67 )     (67 )     (67 )
Gain on trouble debt restructuring     (2,547 )     (1,993 )     2,369  
Extinguishment (loss) gain     (1,591 )     (1,348 )     (1,258 )
Total other expenses, net     (24,288 )     (29,352 )     (33,160 )
Loss before provision for income taxes     (29,755 )     (39,964 )     (48,015 )
Provision for income taxes     —       —       —  
Net loss from continuing operations     (29,755 )     (39,964 )     (48,015 )
Income (loss) from discontinued operations, net     4,270       8,769       14,093  
Net loss     (25,485 )     (31,195 )     (33,922 )
Preferred stock dividends     (20 )     (40 )     (60 )
Net loss attributable to common shareholders   $ (25,505 )   $ (31,235 )   $ (33,982 )
                         
Continuing operations loss per common share:                        
Basic and diluted   $ (1.91 )   $ (2.35 )   $ (2.63 )
                         
Net loss per common share:                        
Basic and diluted     (1.63 )     (1.83 )     (1.86 )
                         
Weighted average number of common shares outstanding                        
Basic and diluted     15,588,749       17,027,048       18,272,104  

 

The Company’s year-to-date statement of operations are as follows:

 

($ in thousands, except per share data)   Three months
ended
March 31,
2018		     Six months
ended
June 30,
2018		     Nine months
ended
September 30,
2018		  
    (unaudited)     (unaudited)     (unaudited)  
Revenues, net of discounts   $ 3,510     $ 6,759     $ 12,429  
Cost of revenues     3,743       6,802       10,407  
Gross profit (loss)     (233 )     (43 )     2,022  
                         
Operating expenses                        
Compensation expense -selling general and administrative     1,851       5,212       20,508  
Selling, general and administrative expenses     2,957       8,219       15,904  
Loss (gain) on sale of asset     34       (13 )     (13 )
Total operating expenses     4,842       13,418       36,399  
Operating loss     (5,075 )     (13,461 )     (34,377 )
                         
Other income (expenses)                        
Interest expense     (1,035 )     (3,995 )     (6,209 )
Amortization of deferred financing costs and debt discount     (8,127 )     (15,271 )     (23,648 )
Gain on debt derivative liability     11,759       18,072       15,445  
Gain on warrant liability     (13,821 )     (11,073 )     3,714  
Other (expense) income, net     (786 )     (65 )     (36 )
Loss on issuance of notes     (2,860 )     (4,451 )     (4,654 )
Extinguishment gain     14,501       26,108       24,624  
Total other income (expenses), net     (369 )     9,325       9,236  
Loss before provision for income taxes     (5,444 )     (4,136 )     (25,141 )
Provision for income taxes     —       —       —  
Net loss from continuing operations     (5,444 )     (4,136 )     (25,141 )
Net income from discontinued operations     4,360       10,550       18,568  
Net loss     (1,084 )     6,414       (6,573 )
Preferred stock dividends     (20 )     (40 )     (60 )
Net loss attributable to common shareholders   $ (1,104 )   $ 6,374     $ (6,633 )
                         
Continuing operations loss per common share:                        
Basic and diluted   $ (0.93 )   $ (0.66 )   $ (3.73 )
                         
Net (loss) income per common share:                        
Basic and diluted   $ (0.19 )     1.03       (0.98 )
                         
Weighted average number of common shares outstanding                        
Basic and diluted     5,851,288       6,228,555       6,739,771  

 

The Company’s statement of cash flows are as follows:

 

    Period ended  
(dollars in thousands)   March 31,
2019		     June 30,
2019		     September 30,
2019		  
    (Unaudited)     (Unaudited)      (Unaudited)  
Cash flows from operating activities:                        
Net loss   $ (25,485 )   $ (31,195 )   $ (33,922 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                        
Depreciation     485       905       1,238  
Amortization of intangible assets     2,253       4,506       6,759  
Amortization of debt discount and deferred financing costs     17,230       20,886       26,230  
Loss (gain) on sale of asset     6       (718 )     (716 )
Payment in kind interest-debt on notes payable     280       819       859  
Payment in kind interest on Benchmark Builders notes payable     401       811       1,723  
Share-based compensation     512       802       1,095  
Common shares issued for board of director fees     —       —       248  
Prepayment and late fee penalties on convertible note payments     —       —       2,728  
Loss on issuance of convertible debt     67       67       67  
Loss on debt conversion and repayment     2,322       1,704       344  
Gain on troubled debt restructuring, net     2,547       1,993       (2,369 )
Gain on merchant credit settlements     (288 )     (288 )     (288 )
Gain on warrant derivative liabilities     (1,395 )     (1,813 )     (631 )
Loss (gain) on convertible derivative liabilities     1,945       1,510       (480 )
Accrued dividends, preferred stock     (20 )     (40 )     (60 )
Changes in operating assets and liabilities:                        
Accounts receivable     (2,845 )     (10,520 )     16,179  
Cost and estimated earnings in excess of billings on uncompleted contracts     9,488       19,652       6,210  
Other current assets     1,231       1,558       421  
Accounts payable and accrued liabilities     (22,670 )     (22,989 )     (31,143 )
Net cash used in operating activities     (13,936 )     (12,350 )     (5,508 )
                         
Cash flows from investing activities :                        
Purchase of property and equipment     (34 )     (60 )     (60 )
Net cash (used in) provided by investing activities     (34 )     (60 )     (60 )
                         
Cash flows from financing activities :                        
Proceeds from issuance of convertible notes     550       550       550  
Payments on convertible notes     (695 )     (952 )     (952 )
Proceeds from issuance of merchant credit agreements     2,755       2,755       2,755  
Payments on merchant credit agreements     (11,191 )     (12,623 )     (13,861 )
Proceeds from issuance of notes payable, net     4,835       4,835       4,835  
Payments on notes payable     (552 )     (1,153 )     (3,573 )
Proceeds from issuance of senior note payable, net     12,632       12,632       12,632  
Proceeds from issuance of notes payable – Benchmark Builders     1,000       1,000       1,000  
Payments on notes payable – Benchmark Builders     (11 )     (11 )     (16 )
Payment of deferred financing costs     (1,301 )     (1,869 )     (1,889 )
Net cash provided by (used in) financing activities     8,022       5,164       1,481  
                         
Net change in cash     (5,948 )     (7,246 )     (4,087 )
Cash, beginning of period     12,170       12,170       12,170  
Cash, end of period   $ 6,222     $ 4,924     $ 8,083  
                         
Cash Reconciliation:                        
Cash from continuing operations   $ 267     $ 46     $ 55  
Cash of discontinued operations     5,955       4,878       8,028  
Total cash   $ 6,222     $ 4,924     $ 8,083  

 

    Period ended  
(dollars in thousands)   March 31,
2018		     June 30,
2018		     September 30,
2018		  
    (Unaudited)     (Unaudited)      (Unaudited)  
Cash flows from operating activities:                        
Net loss   $ (1,084 )   $ 6,414     $ (6,573 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                        
Depreciation     446       920       1,310  
Amortization of intangible assets     2,253       4,506       6,759  
Amortization of debt discount and deferred financing costs     8,127       15,014       23,277  
Loss (gain) on sale of asset     34       (13 )     (13 )
Payment in kind interest-debt on notes payable     754       1,673       1,530  
Payment in kind interest on Benchmark Builders notes payable     —       874       1,303  
Share-based compensation     61       1,234       1,861  
Common shares issued for board fees     429       430       533  
Common shares issued for convertible notes modifications, amendments, redemption agreements and settlements     38       171       171  
Common shares issued for consulting services     2,459       1,096       1,769  
Common shares issued to employees     —       281       12,500  
Loss on issuance of convertible debt     2,860       4,451       4,654  
Prepayment and late fee penalties on convertible note     1,078       1,078       1,059  
Gain on extinguishment of debt     (11,542 )     (31,172 )     (26,215 )
Gain on extinguishment of Benchmark Builders debt     (555 )     —       —  
(Loss) gain on merchant credit and note payable settlement, net     —       —       (2,224 )
Loss (gain) on warrant derivative liabilities     13,821       11,073       (3,714 )
Loss on convertible derivative liabilities     (11,759 )     (18,072 )     (15,445 )
Accrued dividends, preferred stock     (20 )     (40 )     (60 )
Benefit from deferred income taxes     567       453       1,087  
Changes in operating assets and liabilities:                        
Accounts receivable     614       1,785       (3,934 )
Cost and estimated earnings in excess of billings on uncompleted contracts     (8,587 )     (3,222 )     691  
Other current assets     (2,520 )     (1,117 )     39  
Accounts payable and accrued liabilities     48       (4,919 )     (13,241 )
Net cash provided by (used in) operating activities     (2,478 )     (7,102 )     (12,876 )
                         
Cash flows from investing activities:                        
Purchase of property and equipment     —       (623 )     (793 )
Net cash (used in) provided by investing activities     —       (623 )     (793 )
                         
Cash flows from financing activities :                        
Proceeds from issuance of convertible notes     —       9,270       11,871  
Payments on convertible notes     (891 )     (1,281 )     (1,281 )
Proceeds from issuance of merchant credit agreements     2,481       2,481       9,089  
Payments on merchant credit agreements     (10,194 )     (8,786 )     (18,792 )
Payments on notes payable     (472 )     (759 )     (1,044 )
Proceeds from issuance of senior note payable, net     23       935       935  
Payments on notes payable – related parties     —       (2,650 )     (3,276 )
Proceeds from sale of common stock     5,638       5,976       6,476  
Payment of deferred financing costs     (87 )     (217 )     (227 )
Net cash provided by (used in) financing activities     (3,502 )     4,969       3,751  
                         
Net change in cash     (5,980 )     (2,756 )     (9,918 )
Cash, beginning of period     15,642       15,642       15,642  
Cash, end of period   $ 9,662     $ 12,886     $ 5,724  
                         
Cash Reconciliation:                        
Cash from continuing operations   $ 579     $ 1,106     $ 776  
Cash of discontinued operations     9,083       11,780       4,948  
Total cash   $ 9,662     $ 12,886     $ 5,724  

 

The Company’s statement of stockholders’ equity (deficit) for the years ended December 31, 2019 and 2018 are as follows:

 

                      Shares           Total  
    Preferred stock     Common stock     Paid in     to be     Accumulated     Equity  
    Shares     Amount     Shares     Amount     Capital     Issued     Deficit     (Deficit)  
January 1, 2019     795     $ —       12,286,847     $ 12     $ 113,881     $ 1,280     $ (174,632 )   $ (59,459 )
Common shares issued to employees     —       —       62,839       —       218       —       —       218  
Common shares issued to convert debt     —       —       3,123,548       3       6,783       —       —       6,786  
Common shares issued to Senior Lender     —       —       1,698,580       2       2,920       —       —       2,922  
Common shares issued to note guarantor     —       —       1,005,751       1       1,960       —       —       1,961  
Common shares issued to lender     —       —       356,513       —       613       —       —       613  
Common shares issued for convertible notes –inducement     —       —       35,056       —       94       —       —       94  
Share-based compensation     —       —       —       —       294       —       —       294  
Shares returned to outstanding     —       —       (119,593 )     —       —       —       —       —  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net loss     —       —       —       —       —       —       (25,485 )     (25,485 )
March 31, 2019     795       —       18,449,541       18       126,743       1,280       (200,117 )     (72,076 )
Share-based compensation     —       —       —       —       290       —       —       290  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net loss     —       —       —       —       —       —       (5,710 )     (5,710 )
June 30, 2019     795       —       18,449,541       18       127,013       1,280       (205,827 )     (77,516 )
Common shares issued to investors     —       —       160,000       —       1,280       (1,280 )     —       —  
Common shares issued board fee     —       —       250,000       1       247       —       —       248  
Common shares issued to Senior Lender     —       —       2,005,724       2       2,124       —       —       2,126  
Issuance of Series H convertible preferred stock to Series A and B Noteholders     100       —       —       —       —       —       —       —  
Share-based compensation     —       —       —       —       293       —       —       293  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net loss     —       —       —       —       —       —       (2,727 )     (2,727 )
September 30, 2019     895       —       20,865,265       21       130,937       —       (208,554 )     (77,596 )
Common shares issued for convertible notes –settlement     —       —       353,202       —       156       —       —       156  
Common shares issued in acquisition     —       —       —       —               15,385       —       15,385  
Redemption of Series H     (100 )     —       —       —       —       —       —       —  
Series I preferred shares issued in acquisition     —       —       —       —               117,926       —       117,926  
Share-based compensation     —       —       —       —       293       —       —       293  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net income     —       —       —       —       —       —       18,482       18,482  
December 31, 2019     795     $ —       21,218,467       21     $ 131,366     $ 133,311     $ (190,072 )   $ 74,626  

 

                      Shares           Total  
    Preferred stock     Common stock     Paid in     to be     Accumulated     Equity  
    Shares     Amount     Shares     Amount     Capital     Issued     Deficit     (Deficit)  
January 1, 2018     2,575     $ —       5,620,281     $ 6     $ 56,979     $ 250     $ (128,040 )   $ (70,805 )
Common shares issued to investors     —       —       26,667       —       200       —       —       200  
Common shares issued to convert debt     —       —       284,334       —       5,755       —       —       5,755  
Common shares issued to consultants     —       —       135,750       —       2,459       —       —       2,459  
Common shares issued board fee     —       —       25,000       —       429       —       —       429  
Common shares issued to settle legal matter     —       —       677       —       16       —       —       16  
Common shares issued for convertible notes – inducement     —       —       31,100       —       514       —       —       514  
Common shares issued for convertible notes –settlement     —       —       1,500       —       38       —       —       38  
Warrants exercised     —       —       14,750       —       416       —       —       416  
Share-based compensation     —       —       —       —       61       —       —       61  
Shares to be issued     —       —       —       —       (619 )     6,056       —       5,437  
Shares returned to outstanding     —       —       (4,000 )     —       —       —       —       —  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net loss     —       —       —       —       —       —       (1,084 )     (1,084 )
March 31, 2018     2,575       —       6,136,059       6       66,228       6,306       (129,124 )     (56,584 )
Common shares issued to investors     —       —       846,531       1       6,400       (6,306 )     —       95  
Common shares issued to employees     —       —       18,003       —       281       —       —       281  
Common shares issued to convert debt     —       —       83,278       —       1,625       —       —       1,625  
Common shares returned to outstanding from consultants     —       —       (77,794 )     —       (1,362 )     —       —       (1,362 )
Common shares issued for convertible notes – inducement     —       —       50,538       —       820       —       —       820  
Common shares issued to settle debt     —       —       40,000       —       919       —       —       919  
Common shares issued for convertible notes –prepayment     —       —       8,260       —       133       —       —       133  
Warrants exercised     —       —       185,767       —       356       —       —       356  
Share-based compensation     —       —       —       —       1,173       —       —       1,173  
Shares returned to outstanding     —       —       (65,484 )     —       —       —       —       —  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net income     —       —       —       —       —       —       7,498       7,498  
June 30, 2018     2,575       —       7,225,158       7       76,553       —       (121,626 )     (45,066 )
Common shares issued to investors     —       —       29,586       —       500       —       —       500  
Common shares issued to employees     —       —       905,770       1       12,218       —       —       12,219  
Common shares issued to convert debt     —       —       116,637       —       1,643       —       —       1,643  
Common shares issued to consultants     —       —       60,650       —       673       —       —       673  
Common shares issued board fee     —       —       8,000       —       104       —       —       104  
Common shares issued for convertible notes – inducement     —       —       16,900       —       193       —       —       193  
Warrants exercised     —       —       64,950       —       484       —       —       484  
Exchange of Series G convertible preferred stock for common stock     (1,780 )     —       178,000       —       —       —       —       —  
Share-based compensation     —       —       —       —       303       —       —       303  
Shares returned to outstanding     —       —       (630 )     —       —       —       —       —  
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net loss     —       —       —       —       —       —       (12,987 )     (12,987 )
September 30, 2018     795       —       8,605,021       8       92,652       —       (134,613 )     (41,953 )
Common shares issued to employees     —       —       404,890       —       4,106       —       —       4,106  
Common shares issued to convert debt     —       —       1,417,271       2       7,313       —       —       7,315  
Common shares issued to consultants     —       —       691,500       1       6,916       —       —       6,917  
Common shares issued to Senior Lender     —       —       854,599       1       1,096       —       —       1,097  
Common shares issued to settle legal matter     —       —       57,406       —       537       —       —       537  
Common shares issued for convertible notes – inducement     —       —       100,841       —       629       —       —       629  
Common shares issued for convertible notes –settlement     —       —       1,759       —       14       —       —       14  
Warrants exercised     —       —       163,560       —       562       —       —       562  
Share-based compensation     —       —       —       —       294       —       —       294  
Shares to be issued     —       —       —       —       (142 )     1,280       —       1,138  
Shares returned to outstanding     —       —       (10,000 )     —       (75 )     —       —       (75 )
Accrued dividends -preferred stock     —       —       —       —       (20 )     —       —       (20 )
Net loss     —       —       —       —       —       —       (40,019 )     (40,019 )
December 31, 2018     795     $ —       12,286,847       12     $ 113,881     $ 1,280     $ (174,632 )   $ (59,459 )