Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2016
Sep. 30, 2015
Cash flows from operating activities:      
Net (loss) income $ 546,171 $ (6,234,434) $ (3,554,914)
Adjustments to reconcile net (loss) income to net cash used in operating activities:      
Amortization of deferred financing costs 72,876 725,165
Change in warrant valuation 64,800
Provision for bad debts 29,949 409,481
Extinguishment loss 313,900
Forbearance incentive expense 101,156
Stock based compensation 473,328
Depreciation 96,698 516,066 108,324
Amortization of original issue discount 36,448 218,691
Payment in kind interest-senior debt 48,682 329,831
Stock incentive expense to investors   35,186
Stock compensation 342,743 618,267
Gain on settlement of lease termination costs (226,544)
Gain on extinguishment of senior debt (3,431,533)
Changes in operating assets and liabilities:      
Accounts receivable (231,035) (5,603,046) 279,844
Other current assets 4,977 (785,705) (1,257,966)
Accounts payable and accrued liabilities 1,076,170 (1,809,093) 3,602,899
Net cash used in operating activities (1,437,803) (11,580,423) (64,392)
Cash flows from investing activities:      
Purchase of property and equipment (94,358) (848,181) (125,573)
Restricted cash account (3,003,226) 3,003,226
Net cash (used in) provided by investing activities (3,097,584) 2,155,045 (125,573)
Cash flows from financing activities:      
Advances (payments) on factor lines of credit, net (600,554) (383,682)
Advances from related party 183,538
Proceeds from issuance of notes payable 8,000,000 8,281,271
Payments on notes payable (2,194,376) (569,869) (143,786)
Payments on notes payable - related parties (145,904) (210,302)
Proceeds from notes payable-related parties 62,226 503,857
Proceeds from sale of preferred stock 430,683
Proceeds from repayment of subscriptions receivable 140,000 875,000 660,000
Proceeds from sale of common stock 2,628,000
Payment of deferred financing costs (874,516) (940,498) (140,000)
Net cash provided by financing activities 4,532,780 10,631,857 396,451
Net change in cash (2,607) 1,206,479 206,486
Cash, beginning of Period 207,740 205,133 1,254
Cash, end of Period 205,133 1,411,612 207,740
Supplemental Disclosure of Cash Flow Information:      
Cash paid for interest 264,865 1,381,933 350,922
Cash paid for income taxes
Noncash investing and financing activities:      
Issuance of notes payable for the purchase of fixed assets 1,127,797 589,907 1,314,474
Common stock issued for notes payable 1,320,453
Common stock issued for accounts payable 477,985
Issuance of notes to settle litigation 288,000 146,000 200,000
Accrued dividends preferred stock 19,891 79,560 79,561
Unpaid subscription for preferred shares 349,789
Cancellation of preferred shares
Preferred shares issued to settle rent obligations $ 25,000