CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
|
12 Months Ended |
Dec. 31, 2016 |
Dec. 31, 2015 |
| Cash flows from operating activities: |
|
|
| Net loss |
$ (4,108,502)
|
$ (38,255,271)
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation and amortization |
3,323,711
|
3,650,747
|
| Deferred tax expense (benefit) |
(1,289,634)
|
1,919,497
|
| Gain on litigation settlement |
(1,740,297)
|
|
| Gain on lease cancellation |
(423,998)
|
|
| Impairment expense |
|
27,140,126
|
| Stock-based compensation expense |
264,331
|
446,107
|
| Amortization of deferred financing costs |
1,527,672
|
|
| Amortization of prepaid license fees |
112,500
|
225,000
|
| Amortization of premium on short-term investments, net |
|
76,878
|
| Amortization of customer deposits |
(112,500)
|
(225,000)
|
| Change in fair value of warrant liability |
401,000
|
(93,789)
|
| Loss on sale of property and equipment |
|
34,147
|
| Provision for bad debt |
|
70,000
|
| Write off property and equipment |
|
191,946
|
| Gain on settlement of debt |
(148,112)
|
(20,161)
|
| Accretion of debt discount |
|
7,814
|
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
340,001
|
835,937
|
| Prepaid expenses and other current assets |
(545,548)
|
(30,535)
|
| Incremental direct costs |
600,893
|
(123,048)
|
| Accounts payable |
(553,312)
|
(475,194)
|
| Accrued expenses |
127,572
|
154,292
|
| Deferred income |
(4,481,294)
|
(2,139,137)
|
| Deferred rent |
10,563
|
19,209
|
| Other liabilities |
30,890
|
426,267
|
| Net cash used in operating activities |
(6,664,064)
|
(6,164,168)
|
| Cash flows from investing activities: |
|
|
| Proceeds from maturities of short-term investments |
500,000
|
5,547,000
|
| Purchases of short-term investments |
|
(925,000)
|
| Costs incurred to develop technology |
|
(419,359)
|
| Purchases of property and equipment |
(5,292)
|
(84,237)
|
| Proceeds from the sale of property and equipment |
|
9,060
|
| Security deposits |
163,032
|
(12,476)
|
| Net cash provided by investing activities |
657,740
|
4,114,988
|
| Cash flows from financing activities: |
|
|
| Proceeds from the sale of common stock |
17,063,203
|
5,235,300
|
| Exercise of warrants |
687,500
|
|
| Payment of offering costs |
(3,530,326)
|
(670,877)
|
| 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)
|
(1,336,944)
|
| Merchant reserve |
(166,078)
|
(400,000)
|
| Shares repurchased on vesting of restricted stock |
(5,481)
|
(211,841)
|
| Payments of capital leases |
|
(15,232)
|
| Net cash provided by financing activities |
10,004,604
|
2,600,406
|
| Net increase in cash and cash equivalents |
3,998,280
|
551,226
|
| Cash and cash equivalents, beginning of year |
2,070,693
|
1,519,467
|
| Cash and cash equivalents, end of year |
6,068,973
|
2,070,693
|
| Supplemental disclosures of other cash flow information: |
|
|
| Cash paid for income taxes |
19,375
|
|
| Cash paid for interest |
37,492
|
|
| Non-cash disclosures: |
|
|
| Working capital adjustment to note payable |
|
32,281
|
| Increase in goodwill resulting from NAPW legal settlement |
|
$ 133,693
|