Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash Flows From Operating Activities:    
Net (loss) income $ (17,111,290) $ 470,565
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:    
Depreciation and amortization 564,839 82,342
Stock-based compensation 1,424,672 0
Loss on debt extinguishment 0 57,502
Change in contingent consideration liability 145,997 0
Loss on derivative liability 9,292,720 0
Changes in Operating Assets and Liabilities:    
Accounts receivable (396,664) (198,824)
Other receivable (105,799) 0
Unbilled revenues (429,665) 69,795
Deferred tax benefit (459,512) (161,255)
Prepaid expenses and other current assets (143,866) (118,450)
Restricted cash (545,008) (200)
Security deposits (41,141) 24,632
Accounts payable and accrued liabilities 842,147 220,985
Deferred revenue 61,832 68,420
Security deposit payable 20,000 30,000
Deferred rent 13,986 (17,763)
Net Cash (Used in) Provided by Operating Activities (6,866,752) 527,749
Cash Flows From Investing Activities:    
Purchase of property and equipment (260,285) (15,137)
Internally developed software (208,749) 0
Consideration paid for acquisitions, net of cash acquired (542,399) 0
Loans to related parties 0 (46,433)
Net Cash Used in Investing Activities (1,011,433) (61,570)
Cash Flows From Financing Activities:    
Gross proceeds from factor borrowing 4,167,113 11,283,679
Repayments of factor borrowing (5,001,051) (11,320,036)
Distribution to stockholders 0 (45,808)
Proceeds from the issuance of short-term debt 623,642 0
Proceeds from the issuance of Series A redeemable convertible preferred stock, net of issuance costs 9,385,598 0
Repayment of capital lease obligations (82,897) (57,781)
Repayment of notes payable (6,600) (261,600)
Proceeds on issuance of notes payable 0 20,000
Proceeds from private placement, net of issuance costs 0 4,798,553
Net Cash Provided by Financing Activities 9,085,805 4,417,007
Net Change in Cash 1,207,620 4,883,186
Cash, beginning of period 4,888,797 5,611
Cash, end of period 6,096,417 4,888,797
Supplemental Disclosures of Cash Flow Information:    
Cash paid for taxes 13,031 4,495
Cash paid for interest 113,635 151,041
Non-Cash Transactions:    
Reclassification of due from related party to distribution 0 456,563
Conversion of notes payable into common stock issuable 0 345,000
Warrant issuance in connection with private placement 0 1,751,962
Addition of capital leases 228,038 38,281
Common stock issued in connection with acquisitions 4,929,000 0
Cashless exercise of warrants 222,299 0
Contingent Consideration in Connection with Aquisition [Member]    
Non-Cash Transactions:    
Non cash consideration in connection with acquisitions 4,922,613 0
Deferred Revenue in Connection with Acquisition [Member]    
Non-Cash Transactions:    
Non cash consideration in connection with acquisitions $ 127,334 $ 0