CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
|
9 Months Ended |
Sep. 30, 2016 |
Sep. 30, 2015 |
| Cash flows from operating activities: |
|
|
| Net loss |
$ (3,519,041)
|
$ (34,438,321)
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation and amortization |
2,498,136
|
2,730,880
|
| Deferred tax benefit |
(1,218,092)
|
1,509,395
|
| Gain on lease cancellation |
(423,998)
|
|
| Impairment expense |
|
26,744,249
|
| Stock-based compensation expense |
217,547
|
350,667
|
| Amortization of deferred financing costs |
156,594
|
|
| Amortization of prepaid license fees |
112,500
|
168,750
|
| Amortization of premium on short-term investments, net |
|
76,878
|
| Amortization of customer deposits |
(112,500)
|
(168,750)
|
| Change in fair value of warrant liability |
401,000
|
(93,784)
|
| Accretion of debt discount |
|
7,814
|
| Loss on sale of property and equipment |
|
32,649
|
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
671,056
|
886,810
|
| Prepaid expenses and other current assets |
181,903
|
(682,541)
|
| Incremental direct costs |
476,300
|
(184,420)
|
| Accounts payable |
893,210
|
(1,630,793)
|
| Accrued expenses |
681,779
|
1,510,273
|
| Deferred revenue |
(3,560,351)
|
(1,089,802)
|
| Deferred rent |
10,279
|
63,267
|
| Other liabilities |
45,098
|
|
| Net cash used in operating activities |
(2,488,580)
|
(4,206,779)
|
| Cash flows from investing activities: |
|
|
| Proceeds from maturities of short-term investments |
500,000
|
5,297,000
|
| Purchases of short-term investments |
|
(925,000)
|
| Costs incurred to develop technology |
|
(393,385)
|
| Purchases of property and equipment |
|
(53,596)
|
| Security deposit |
194,411
|
(14,952)
|
| Net cash provided by investing activities |
694,411
|
3,910,067
|
| 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)
|
| Proceeds from line of credit |
1,942,625
|
|
| Payment of debt issuance costs related to Master Credit Facility |
(488,082)
|
|
| Payment of deferred offering costs related to CFL Transaction |
(1,049,026)
|
|
| Merchant reserve |
(166,078)
|
(400,000)
|
| Shares repurchased on vesting of restricted stock |
|
(195,976)
|
| Payments of capital leases |
|
(15,232)
|
| Net cash provided by financing activities |
239,439
|
2,658,462
|
| Net (decrease) increase in cash and cash equivalents |
(1,554,730)
|
2,361,750
|
| Cash and cash equivalents, beginning of period |
2,070,693
|
1,519,467
|
| Cash and cash equivalents, end of period |
515,963
|
3,881,217
|
| Supplemental disclosures of other cash flow information: |
|
|
| Cash paid for income taxes |
4,605
|
4,631
|
| Cash paid for interest |
21,740
|
|
| Non-cash investing and financing activities: |
|
|
| Issuance of warrants in connection with Master Credit Facility |
783,458
|
|
| Reclassification of derivative liability to additional paid in capital |
781,000
|
|
| Working capital adjustment to note payable |
|
32,281
|
| Increase in goodwill resulting from NAPW legal settlement |
|
$ 133,693
|