Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net Loss $ (3,190,072) $ (3,774,570)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Amortization of deferred financing costs 327,944
Change in value of term loan 313,900
Forbearance incentive expense 101,156
Depreciation expense 374,935 98,762
Amortization of original issue discount 164,018
Payment in kind interest-senior debt 246,600
Stock incentive expense to investor 35,186
Stock compensation expense to employees 172,467 473,328
Provision for bad debt 409,481
Gain on lease termination costs (226,544)
Changes in operating assets and liabilities:    
Accounts receivable (5,578,676) 1,167,146
Other current assets 600,984 (1,316,984)
Due to related party 183,538
Accounts payable and accrued liabilities 900,568 3,819,086
Net cash (used in) provided by operating activities (6,834,114) 934,399
Cash flows from investing activities:    
Purchases of property and equipment (308,907) 28,320
Restricted cash account 3,003,226
Net cash provided by investing activities 2,694,319 28,320
Cash flows from financing activities:    
Proceeds from issuance of notes payable 2,500,000
Payments on factor line of credit, net (383,682)
Payments on notes payable (691,183) (137,367)
Proceeds from issuance of notes payable-related parties 195,086
Payments on notes payable-related parties (43,518) (210,302)
Payment of deferred financing costs (493,699) (125,000)
Collection of subscription receivable 775,000 60,000
Net proceeds from sale of common stock 1,701,562
Net cash provided (used in) by financing activities 3,943,248 (796,351)
Net change in cash (196,547) 166,368
Cash, beginning of period 205,133 41,372
Cash, end of period 8,586 207,740
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest 1,083,160 256,479
Non-cash financing activities:    
Notes payable issued to finance equipment purchases 794,302 1,220,305
Common stock shares issued for notes payable 898,438
Issuance of notes to settle accrued litigation 146,000 200,000
Issuance of notes to settle accounts payable 719,877 430,683
Accrued dividends, preferred stock 59,670 59,670
Cancellation of preferred shares 202
Repayment in kind of subscription receivable (60,000)
Unpaid subscription for preferred shares (433,883)
Preferred shares issued to settle rent obligation 50,000
Common shares issued as subscription receivable 1,357,800
Conversion of preferred shares to common shares $ 58,425