Financials

v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 30,999,732 $ 2,472,836
Accounts receivable, net of allowance for doubtful accounts of approximately $435,000 and $668,000, respectively 9,174,993 10,634,393
Prepaid expenses and other current assets 1,871,183 1,609,518
Deferred installation costs - current portion 798,166 0
Current assets of discontinued operations 4,269,653 2,867,953
Total current assets 47,113,727 17,584,700
Property and equipment, net 11,115,107 12,838,840
Security deposits 612,299 612,299
Restricted cash 27,153 27,153
Goodwill 35,181,698 34,773,629
Intangible assets, net 55,687,545 56,156,023
Deferred installation costs - net of current portion 1,102,648 0
Other assets 35,632 43,937
Non-current assets of discontinued operations 19,780 20,980
TOTAL ASSETS 150,895,589 122,057,561
Current liabilities:    
Term loan - current portion 6,500,000 6,500,000
Obligations under asset purchase agreements - current portion 723,297 227,760
Equipment financing obligations - current portion 1,075,252 1,206,773
Deferred installation revenue - current portion 797,332 0
Accounts payable and accrued expenses 20,165,445 21,995,443
Current liabilities from discontinued operations 4,660,278 3,093,602
Total current liabilities 33,921,604 33,023,578
Long-term liabilities:    
Notes payable - non-related parties, net of discount 32,083,554 31,953,163
Notes payable - related parties 928,081 928,081
Term Loan 47,663,242 54,222,668
Indebtedness under revolving credit facility 0 1,500,000
Obligations under asset purchase agreements 477,162 222,240
Equipment financing obligations - net of current obligations 407,345 590,602
Deferred installation revenue - net of current portion 1,029,445 0
Derivative liabilities 586,197 872,900
Total liabilities 117,096,630 123,313,232
Stockholders' equity:    
Preferred stock, $0.01 par value, 10,000,000 shares authorized, 13,466 and 14,216 shares issued and outstanding 134 142
Common stock, $0.01 par value, 150,000,000 shares authorized, 23,847,140 and 14,980,756 shares issued and outstanding 238,471 149,807
Capital in excess of par value 235,027,397 195,940,332
Accumulated deficit (201,318,706) (197,264,083)
Total Fusion Connectl, Inc. stockholders' equity (deficit) 33,947,296 (1,173,804)
Noncontrolling interest (148,337) (81,867)
Total stockholders' equity (deficit) 33,798,959 (1,255,671)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 150,895,589 $ 122,057,561

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Income Statement [Abstract]    
Revenues $ 29,038,043 $ 28,481,039
Cost of revenues, exclusive of depreciation and amortization, shown separately below 12,918,895 12,140,707
Gross profit 16,119,148 16,340,332
Depreciation and amortization 3,135,779 3,835,948
Selling, general and administrative expenses 13,947,995 13,613,661
Impairment charge 1,195,837 0
Total operating expenses 18,279,611 17,449,609
Operating loss (2,160,463) (1,109,277)
Other (expenses) income:    
Interest expense (2,147,775) (2,092,312)
Change in fair value of derivative liabilities 194,312 (40,445)
Loss on disposal of property and equipment (3,184) (26,800)
Other income, net 89,558 116,520
Total other expenses (1,867,089) (2,043,037)
Loss before income taxes (4,027,552) (3,152,314)
Provision for income taxes (14,050) (7,811)
Net loss from continuing operations (4,041,602) (3,160,125)
Net loss from discontinued operations (166,175) (321,823)
Net loss (4,207,777) (3,481,948)
Less: Net loss attributable to non-controlling interest 66,470 0
Net loss attributable to Fusion Connect, Inc. (4,141,307) (3,481,948)
Preferred stock dividends (243,582) (1,254,109)
Net loss attributable to common stockholders $ (4,384,889) $ (4,736,057)
Basic and diluted loss per common share from continuing operations: $ (0.20) $ (0.32)
Basic and diluted loss per common share from discontinued operations: $ (0.01) $ (0.02)
Weighted average common shares outstanding:    
Basic and diluted 20,682,262 13,805,133

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities:    
Net loss from continuing operations $ (4,041,602) $ (3,160,125)
Net loss from discontinued operations (166,175) (321,823)
Net loss (4,207,777) (3,481,948)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 3,135,779 3,835,948
Loss on disposal of property and equipment 3,184 26,800
Stock-based compensation 365,254 224,647
Impairment charge 1,195,837 0
Stock issued for services rendered or in settlement of liabilities 0 164,450
Amortization of debt discount and deferred financing fees 195,963 209,628
(Gain) loss on the change in fair value of derivative liability (194,312) 40,445
Changes in operating assets and liabilities:    
Accounts receivable 1,459,401 179,518
Prepaid expenses and other current assets (304,442) (873,401)
Other assets and liabilities 20,952 8,295
Accounts payable and accrued expenses (1,949,917) 690,812
Cash (used in) provided by operating activities - continuing operations (113,903) 1,385,070
Cash provided by (used in) operating activities - discontinued operations 107,612 (15,826)
Net cash (used in) provided by operating activities (6,291) 1,369,244
Cash flows from investing activities:    
Purchase of property and equipment (976,877) (984,642)
Proceeds from the sale of property and equipment 31,533 40,680
(Payment) for acquisitions, net of cash acquired 0 (558,329)
Cash used in investing activities - continuing operations (945,344) (1,502,291)
Cash used in investing activities - discontinued operations 0 0
Net cash used in investing activities (945,344) (1,502,291)
Cash flows from financing activities:    
Proceeds from the exercise of common stock purchase warrants 11,982 780,951
Repayments of term loan (6,625,000) (812,500)
Repayments of revolving debt, net (1,500,000) 0
Payments for obligations under asset purchase agreements (192,157) (191,668)
Proceeds from the sale of common stock, net of offering expenses 38,206,096 0
Payments on equipment financing obligations (314,777) (223,493)
Cash provided by (used in) financing activities - continuing operations 29,586,144 (446,710)
Cash provided by (used in) financing activities - discontinued operations 0 0
Net cash provided by (used in) financing activities 29,586,144 (446,710)
Net change in cash and cash equivalents 28,634,509 (579,757)
Cash and cash equivalents, including restricted cash, beginning of period 2,557,541 7,249,063
Less cash and cash equivalents of discontinued operations, end of period 165,165 15,038
Cash and cash equivalents, including restricted cash of continuing operations, end of period $ 31,026,885 $ 6,654,268

Source