Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:    
Net loss $ (22,287,549) $ (4,108,502)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 3,197,191 3,323,711
Deferred tax expense (benefit) (1,849,755) (1,289,634)
Loss (gain) on litigation settlement 155,216 (1,240,297)
Gain on lease cancellation (423,998)
Goodwill impairment charge 14,611,040
Stock-based compensation expense 900,363 264,331
Amortization of deferred financing costs 1,527,672
Amortization of prepaid license fees 112,500
Amortization of customer deposits (112,500)
Change in fair value of warrant liability 401,000
Provision for bad debt 171,313
Gain on settlement of debt (148,112)
Changes in operating assets and liabilities:    
Accounts receivable 4,607 340,001
Prepaid expenses and other current assets 480,484 (545,548)
Incremental direct costs 277,731 600,893
Accounts payable (659,175) (1,053,312)
Accrued expenses 135,043 127,572
Deferred income (1,487,181) (4,481,294)
Deferred rent 364 10,563
Other liabilities 19,162 30,890
Net cash used in operating activities (6,331,146) (6,664,064)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 500,000
Costs incurred to develop technology (185,114)
Purchases of property and equipment (153,628) (5,292)
Security deposits (4,559) 163,032
Net cash (used in) provided by investing activities (343,301) 657,740
Cash flows from financing activities:    
Proceeds from the sale of common stock 3,063,518 17,063,203
Exercise of warrants 687,500
Payment of offering costs (144,000) (3,530,326)
Repurchase of common stock (3,000,000)
Proceeds from line of credit 2,159,362
Repayment of line of credit (2,159,362)
Payment of deferred financing costs related to Master Credit Facility (744,214)
Repayment of note payable (300,000)
Merchant reserve 666,078 (166,078)
Shares repurchased on vesting of restricted stock (5,481)
Payments of capital leases
Net cash provided by financing activities 3,585,596 10,004,604
Effect of exchange rate on cash 33,805
Net (decrease)/ increase in cash and cash equivalents (3,055,046) 3,998,280
Cash and cash equivalents, beginning of year 6,068,973 2,070,693
Cash and cash equivalents, end of year 3,013,927 6,068,973
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes 1,702 19,375
Cash paid for interest $ 37,492