Cash Flow

v3.8.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (17,664,610) $ (3,519,041)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,443,511 2,498,136
Deferred tax (1,160,437) (1,218,092)
Gain on lease cancellation (423,998)
Goodwill impairment charge 9,920,305
Stock-based compensation expense 731,322 217,547
Provision for bad debt 155,077
Amortization of deferred financing costs 156,594
Amortization of prepaid license fees 112,500
Amortization of customer deposits (112,500)
Change in fair value of warrant liability 401,000
Changes in operating assets and liabilities:    
Accounts receivable 219,391 671,056
Prepaid expenses and other current assets 467,339 181,903
Incremental direct costs 181,788 476,300
Accounts payable (940,051) 893,210
Accrued expenses 209,458 681,779
Deferred revenue (1,067,652) (3,560,351)
Deferred rent 5,241 10,279
Other liabilities 45,322 45,098
Net cash used in operating activities (6,453,996) (2,488,580)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 500,000
Costs incurred to develop technology (122,597)
Purchases of property and equipment (154,295)
Security deposit (17,603) 194,411
Net cash (used in) provided by investing activities (294,495) 694,411
Cash flows from financing activities:    
Proceeds from the sale of common stock 3,000,000
Payment of offering costs (144,000)
Proceeds from line of credit 1,942,625
Payment of deferred issuance costs related to Master Credit Facility (488,082)
Payment of deferred offering costs related to CFL Transaction (1,049,026)
Merchant reserve 646,078 (166,078)
Net cash provided by financing activities 3,502,078 239,439
Effect of exchange rate fluctuations on cash and cash equivalents (831)
Net decrease in cash and cash equivalents (3,247,244) (1,554,730)
Cash and cash equivalents, beginning of period 6,068,973 2,070,693
Cash and cash equivalents, end of period 2,821,729 515,963
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes 1,702 4,605
Cash paid for interest 21,740
Issuance of warrants in connection with Master Credit Facility 783,458
Reclassification of derivative liability to additional paid in capital $ 781,000

Source