Transition report pursuant to Rule 13a-10 or 15d-10

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net income $ 546,171 $ 219,654
Adjustments to reconcile net income to net cash used in operating activities:    
Amortization of deferred financing costs 72,876 0
Stock Based Compensation 342,743 0
Depreciation and amortization 96,698 9,562
Amortization of original issue discount 36,448 0
Gain on extinguishment of senior debt and accrued interest (3,431,533) 0
Payment in kind interest-senior debt 48,682 0
Changes in operating assets and liabilities:    
Accounts receivable (231,035) (887,302)
Other current assets 4,977 59,020
Accounts payable and accrued liabilities 1,076,170 199,496
Net cash used in operating activities (1,437,803) (399,570)
Cash flows from investing activities:    
Purchases of property and equipment (94,358) (153,893)
Restricted cash account (3,003,226) 0
Net cash used in investing activities (3,097,584) (153,893)
Cash flows from financing activities:    
Payments on factor lines of credit, net (600,554) 0
Proceeds from issuance of notes payable 8,000,000 0
Payments on notes payable (2,194,376) (6,419)
Proceeds from issuance of notes payable-related parties 62,226 0
Proceeds from repayment of subscriptions receivable 140,000 600,000
Payment of deferred financing costs prior to closing (874,516) 0
Net cash provided by financing activities 4,532,780 593,581
Net change in cash (2,607) 40,118
Cash, beginning of period 207,740 1,254
Cash, end of period 205,133 41,372
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest 264,865 94,443
Non-cash financing activities:    
Notes payable issued to finance equipment purchases 1,127,797 94,169
Unpaid subscription for preferred shares 0 783,672
Repayment in kind of subscription receivable 5,000 60,000
Issuance of notes to settle accrued litigation 288,000 0
Common stock issued for legal settlement 5,120 0
Common stock issued for notes payable 139,701 0
Preferred stock issued for notes payable 25,000 0
Accrued dividends, preferred stock $ 19,890 $ 19,890