Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (8,359,037) $ (9,835,620)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 8,946,781 9,183,632
Loss on extinguishment on debt 2,720,355
Loss on accounts receivable settlement exchanged for equipment 111,659
Loss on disposal of property 86,777
Bad debt expense 215,000 373,034
Stock-based compensation 572,996 392,676
Stock based compensation issued for services rendered by third parties 105,256 215,611
Amortization of debt discount and deferred financing fees 477,751 667,191
Gain in the change in fair value of derivative liability (380,099) (2,543,878)
Changes in operating assets and liabilities:    
Accounts receivable (625,771) (565,227)
Prepaid expenses and other current assets (1,373,378) (83,205)
Other assets (317,927) (203,414)
Accounts payable and accrued expenses (1,258,968) (297,079)
Net cash (used in) provided by operating activities (1,910,619) 135,735
Cash flows from investing activities:    
Purchase of property and equipment (3,782,232) (2,479,335)
Proceeds from the sale of property and equipment 28,736
Net cash acquired through acqusition 16,895
Payments for acquisitions (500,000)
Returns of security deposits 26,750
Escrow refund - PingTone acquisition 392,617
Change in restricted cash 137,970 1,000,000
Net cash used in investing activities (3,179,264) (1,979,335)
Cash flows from financing activities:    
Proceeds from notes payable - non-related parties 9,000,000
Proceeds from revolving debt 12,500,000
Proceeds from accounts receivable factoring arrangement 1,630,045
Repayments of borrowings to accounts receivable factoring arrangement (1,666,919)
Payments on equipment financing obligations (743,647) (592,514)
Repayments of notes payable (824,973) (20,835,022)
Payment of financing fees (680,828)
Net cash used in financing activities (1,568,620) (645,238)
Net change in cash and cash equivalents (6,658,503) (2,488,838)
Cash and cash equivalents, beginning of period 7,540,543 6,444,683
Cash and cash equivalents, end of period $ 882,040 $ 3,955,845