Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
|
6 Months Ended |
Jun. 30, 2015 |
Jun. 30, 2014 |
| Cash flows from operating activities: |
|
|
| Net loss |
$ (1,478,165)
|
$ (1,192,775)
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation and amortization |
96,007
|
86,873
|
| Stock-based compensation expense |
506,455
|
$ 494,712
|
| Loss on disposal of fixed assets |
79,628
|
|
| Amortization of debt issuance cost |
60,198
|
|
| Amortization of debt discount |
397,863
|
|
| Change in fair value of derivative liabilities |
$ (410,000)
|
$ (70,275)
|
| Changes in operating assets and liabilities: |
|
|
| Restricted cash |
|
104,893
|
| Credit card holdback receivable |
$ 419,599
|
(453,752)
|
| Accounts receivable |
(43,213)
|
$ 108,489
|
| Security deposits |
(85,555)
|
|
| Prepaid expenses and other current assets |
(22,210)
|
$ (13,303)
|
| Accounts payable, accrued expenses and other current liabilities |
(873,646)
|
(89,913)
|
| Deferred rent |
49,027
|
(19,306)
|
| Deferred subscription revenue |
(129,203)
|
131,996
|
| Deferred advertising revenue |
(13,427)
|
146,667
|
| Net cash used in operating activities |
(1,446,642)
|
(765,694)
|
| Cash flows from investing activities: |
|
|
| Purchase of property and equipment |
(37,007)
|
$ (3,731)
|
| Proceeds from sale of fixed assets |
$ 6,000
|
|
| Purchase of non-marketable equity securities |
|
$ (50,000)
|
| Issuance to employees of note receivable and accrued interest |
$ (1,280)
|
|
| Notes receivable |
|
$ 47,818
|
| Net cash used in investing activities |
$ (32,287)
|
$ (5,913)
|
| Cash flows from financing activities: |
|
|
| Payments of capital lease obligations |
(30,479)
|
|
| (Repayment of) proceeds from promissory notes |
(400,000)
|
$ 400,000
|
| Payment of financing costs |
(314,249)
|
|
| Proceeds from issuance of promissory notes |
3,000,000
|
|
| Net cash provided by financing activities |
2,255,272
|
$ 400,000
|
| Net increase (decrease) in cash and cash equivalents |
776,343
|
(371,607)
|
| Balance of cash and cash equivalents at beginning of period |
1,138,385
|
927,352
|
| Balance of cash and cash equivalents at end of period |
1,914,728
|
$ 555,745
|
| Supplemental disclosure of cash flow information: |
|
|
| Cash paid in interest and taxes |
90,000
|
|
| Non-cash investing and financing activities: |
|
|
| Compound embedded derivative under the Note and Securities Purchase Agreement recorded as derivative liabilities (See Note 5) |
1,748,000
|
|
| Warrants issued under the Advisory Services Agreement as additional consideration for the Note and recorded as derivative liabilities (See Note 5) |
$ 342,000
|
|
| Warrants issued for debt issuance costs |
|
$ 4,750
|
| Common stock issued under the Advisory Services Agreement as additional consideration for the Note |
$ 30,000
|
|