Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.3.0.814
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss $ (31,978,604) $ (1,691,730)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,730,880 314,619
Deferred tax expense (benefit) $ 1,509,395 (1,130,306)
Fair value of warrants issued to advisor in connection with acquisition $ 138,768
Impairment expense $ 24,717,157
Stock-based compensation expense 350,667 $ 50,292
Amortization of prepaid license fees 168,750
Amortization of premium on short-term investments, net 76,878 $ 45,020
Amortization of customer deposits (168,750)
Change in fair value of warrant liability (93,784) $ 21,015
Accretion of debt discount 7,814
Loss on sale of property and equipment 32,649
Changes in operating assets and liabilities:    
Accounts receivable 886,810 $ 128,128
Prepaid expenses and other current assets (682,541) (216,761)
Incremental direct costs $ (184,420) (35,171)
Prepaid license fee (393,750)
Accounts payable $ (1,630,793) (718,067)
Accrued expenses 1,510,273 (402,836)
Deferred revenue (1,522,427) $ (204,664)
Deferred rent $ 63,267
Customer deposits $ 393,750
Net cash used in operating activities $ (4,206,779) (3,701,693)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 5,297,000 6,243,000
Purchases of short-term investments $ (925,000) (15,525,533)
Cash paid for acquisition, net of cash acquired (3,549,802)
Costs incurred to develop technology $ (393,385) (125,291)
Purchases of property and equipment (53,596) $ (13,300)
Security deposit (14,952)
Net cash provided by (used in) investing activities 3,910,067 $ (12,970,926)
Cash flows from financing activities:    
Proceeds from the sale of common stock 5,235,300
Repayment of note payable (1,294,753)
Payment of offering costs (670,877)
Merchant reserve (400,000) $ 236,480
Shares repurchased on vesting of restricted stock (195,976)
Payments of capital leases $ (15,232) $ (5,305)
Repurchase of common stock (25,862)
Merchant cash advances (447,371)
Net cash provided by (used in) financing activities $ 2,658,462 (242,058)
Net increase (decrease) in cash and cash equivalents 2,361,750 (16,914,677)
Cash and cash equivalents, beginning of period 1,519,467 18,736,495
Cash and cash equivalents, end of period 3,881,217 $ 1,821,818
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes $ 4,631
Cash paid for interest
Non-cash disclosures:    
Working capital adjustment to note payable $ 32,281
Increase in goodwill resulting from NAPW legal settlement $ 133,693
Common stock issued in connection with acquisition of NAPW $ 35,272,033
Fair value of options issued in connection with acquisition of NAPW 556,496
Fair value of warrants issued in connection with acquisition of NAPW 294,342
Note payable - related party acquisition financing $ 434,582