Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Interim Statements of Cash Flows (Unaudited)

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Condensed Consolidated Interim Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net (loss) income $ (1,027,156) $ 89,493
Adjustments to reconcile net income ( loss) to net cash used in operating activities:    
Depreciation and amortization 5,165,469 1,722,499
Loss on disposal of property and equipment 84,373 0
Loss on sale of accounts receivable 94,037 128,769
Deferred income tax provision 147,341 0
Bad debt expense 222,856 1,251
Stock-based compensation 142,140 55,931
Stock and warrants issued for services rendered or in settlement of liabilities 37,542 83,564
Amortization of debt discount and deferred financing fees 579,541 209,011
Change in fair value of derivative liability (1,919,069) (105,267)
Loss on extinguishment of debt 0 150,579
Gain on extinguishment of accounts payable 0 (2,908,882)
Increase (decrease) in cash and cash equivalents attributable to changes in operating assets and liabilities:    
Accounts receivable (1,004,835) (992,929)
Prepaid expenses and other current assets (862,851) (75,670)
Other assets (46,870) 25,894
Replenishment of security deposit 0 (144,141)
Accounts payable and accrued expenses (1,446,993) 1,430,459
Other long-term liabilities (74,186) (67,645)
Net cash provided by (used) in operating activities 91,339 (397,084)
Cash flows from investing activities:    
Purchase of property and equipment (1,817,707) (628,607)
Proceeds from sale of property and equipment 46,116 0
Payment of obligations related to purchase price of acquisitions (226,148) (159,360)
Returns of security deposits 2,000,000 0
Payments of security deposits (10,990) 0
Change in restricted cash (136) (197)
Net cash used in investing activities (8,865) (788,164)
Cash flows from financing activities:    
Proceeds from the sale of common stock and warrants, net 0 1,559,509
Proceeds from the sale of preferred stock and warrants, net 3,984,426 0
Proceeds from notes payable - related parties 0 100,000
Proceeds from notes payable - non-related parties 1,102,724 212,500
Payments on equipment financing obligations (173,832) (5,352)
Repayments of notes payable - related parties (185,714) (257,143)
Repayments of notes payable - non-related parties (1,200,324) (180,577)
Net cash provided by financing activities 3,527,280 1,428,937
Net change in cash and cash equivalents: 3,609,754 243,689
Cash and cash equivalents, beginning of period 6,176,575 543,214
Cash and cash equivalents, end of period $ 9,786,329 $ 786,903