Consolidated Statements of Cash Flows - USD ($)
|
12 Months Ended |
Dec. 31, 2015 |
Dec. 31, 2014 |
| Cash flows from operating activities: |
|
|
| Net loss |
$ (1,297,852)
|
$ (1,657,877)
|
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
| Depreciation and amortization |
$ 167,161
|
181,675
|
| Lease obligation interest expense |
|
3,473
|
| Stock-based compensation expense |
$ 1,086,430
|
$ 1,040,585
|
| Loss on disposal of fixed assets |
79,628
|
|
| Amortization of debt issuance cost |
139,406
|
$ 3,958
|
| Amortization of debt discount |
932,219
|
|
| Change in fair value of derivative liabilities |
$ (1,640,000)
|
$ (117,125)
|
| Changes in operating assets and liabilities: |
|
|
| Restricted cash |
|
490,315
|
| Credit card holdback receivable |
$ 482,906
|
(416,495)
|
| Accounts receivable |
14,581
|
164,242
|
| Security deposits |
(85,554)
|
(250,104)
|
| Prepaid expenses and other current assets |
(16,120)
|
22,113
|
| Accounts payable, accrued expenses and other current liabilities |
(703,802)
|
567,579
|
| Deferred rent |
88,718
|
(38,644)
|
| Deferred subscription revenue |
(446,213)
|
125,304
|
| Deferred advertising revenue |
(13,427)
|
(286,573)
|
| Net cash used in operating activities |
(1,211,919)
|
(167,574)
|
| Cash flows from investing activities: |
|
|
| Purchase of property and equipment |
(77,283)
|
$ (3,731)
|
| Proceeds from sale of fixed assets |
6,000
|
|
| Security deposits for property and equipment |
$ 56,248
|
|
| Purchase of non-marketable equity securities |
|
$ (100,000)
|
| Repayment (issuance) to employees of note receivable and accrued interest |
$ (2,603)
|
92,046
|
| Net cash used in investing activities |
(17,638)
|
(11,685)
|
| Cash flows from financing activities: |
|
|
| Payments of capital lease obligations |
(63,317)
|
$ (9,708)
|
| Repayment of promissory notes |
(400,000)
|
|
| Payment of financing costs |
(314,249)
|
|
| Proceeds from issuance of convertible promissory note |
3,000,000
|
$ 400,000
|
| Net cash provided by financing activities |
2,222,434
|
390,292
|
| Net increase in cash and cash equivalents |
992,877
|
211,033
|
| Balance of cash and cash equivalents at beginning of year |
1,138,385
|
927,352
|
| Balance of cash and cash equivalents at end of year |
2,131,262
|
$ 1,138,385
|
| Supplemental disclosure of cash flow information: |
|
|
| Cash paid in interest |
$ 316,000
|
|
| Cash paid in taxes |
|
|
| Non-cash investing and financing activities: |
|
|
| Compound embedded derivative under the Note and Securities Purchase Agreement recorded as derivative liabilities (See Note 6) |
$ 1,748,000
|
|
| Warrants issued under the Advisory Services Agreement as additional consideration for the Note and recorded as derivative liabilities (See Note 6) |
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
|
|
| Equipment acquired under capital lease obligations |
|
$ 218,605
|