Annual report pursuant to Section 13 and 15(d)

Condensed Consolidated Statement of Operations and Cash Flows

v3.7.0.1
Condensed Consolidated Statement of Operations and Cash Flows
12 Months Ended
Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidated Statement of Operations and Cash Flows

15. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND CASH FLOWS FOR THE THREE MONTHS ENDED DECEMBER 31, 2014

 

    For the Three Months Ended  
    December 31, 2014  
    (unaudited)  
       
Revenues, net of discounts   $ 2,944,035  
Cost of revenues     1,718,238  
Gross Profit     1,225,797  
         
Operating Expenses        
Compensation expense - selling, general, and administrative     293,575  
Selling, general and administrative expenses     359,280  
Travel expense     60,530  
Occupancy costs     37,558  
Total Operating Expenses     750,943  
Operating (Loss) Income     474,854  
         
Other Income (Expense)        
Interest expense     (263,197 )
Other (expense) income     7,997  
Total Other Income (Expense)     (255,200 )
         
Net Income     219,654  
         
Preferred stock dividends     (19,890 )
Net Income attributable to common shareholders   $ 199,764  
         
Earnings per share:        
Basic   $ .10  
Diluted   $ .10  
         
Weighted average number of common shares outstanding:        
Basic     1,999,354  
Diluted     2,062,395  

 

   

 

 

For the Three Months Ended  

 
    December 31,    
    2015         2014 (unaudited)    
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       -  
Stock incentive expense to employees       342,743       -  
Depreciation and amortization       96,698       9,562  
Amortization of original issue discount       36,448       -  
Gain on extinguishment of senior debt     (3,431,533 )     -  
Payment in kind interest-senior debt       48,682       -  
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 )     -  
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 )     -  
Proceeds from issuance of notes payable       8,000,000       -  
Payments on notes payable       (2,194,376 )     (6,419 )
Proceeds from issuance of notes payable-related parties       62,226       -  
Proceeds from repayment of subscriptions receivable       140,000       600,000  
Payment of deferred financing costs prior to closing       (874,516 )     -  
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     $ -     $ 783,672  
Repayment subscription receivable     $ 5,000     $ 60,000  
Issuance of notes payable     $ 288,000     $ -  
Common stock issued for legal settlement     $ 5,120     $ -  
Common stock issued for notes payable     $ 139,701     $ -  
Preferred stock issued for notes payable     $ 25,000     $ -  
Accrued dividends, preferred stock     $ 19,890     $ 19,890