Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.3.1.900
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
OPERATING ACTIVITIES:    
Net loss $ (4,687,378) $ (4,509,250)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 4,598,610 2,791,368
Deferred rent (11,362) 9,088
Deferred revenue (28,664) (31,283)
Deferred income taxes 171,269 153,364
Provision for doubtful accounts 275,218 169,299
Foreign exchange (gain) loss (157,261) 123,210
Gain from reduction in referral fee 0 (105,523)
Gain on disposal of assets 0 (286)
Interest accretion on debt 50,759 77,263
Stock-based compensation expense 628,792 258,878
Change in contingent consideration (1,786,367) (1,811,362)
Other 0 (13,234)
Changes in operating assets and liabilities:    
Accounts receivable 520,121 (2,167,193)
Other assets 233,144 72,235
Accounts payable and other liabilities (1,689,662) 2,283,237
Net cash used in operating activities (1,882,781) (2,700,189)
INVESTING ACTIVITIES:    
Capital expenditures (421,858) (1,116,191)
Cash paid for acquisitions and customer contracts (180,565) (11,536,639)
Advances to majority shareholder 0 (2,463)
Repayment of advances to majority shareholder 0 2,463
Net cash used in investing activities (602,423) (12,652,830)
FINANCING ACTIVITIES:    
Proceeds from IPO of common stock, net of costs 0 17,167,294
Proceeds from issuance of preferred stock, net of costs 4,679,196 0
Proceeds from long term debt, net of costs 5,489,625 0
Proceeds from note payable to majority shareholder 410,000 165,000
Repayments of note payable to majority shareholder (880,089) (430,591)
Repayments of notes payable - other (810,924) (1,222,884)
Proceeds from line of credit 11,463,766 5,725,446
Repayments of line of credit (10,678,766) (5,525,446)
Preferred stock dividends paid (47,771) 0
Purchase of common shares (122,031) 0
Net cash provided by financing activities 9,503,006 15,878,819
EFFECT OF EXCHANGE RATE CHANGES ON CASH (26,900) 24,916
NET INCREASE IN CASH 6,990,902 550,716
CASH - Beginning of the year 1,048,660 497,944
CASH - End of the year 8,039,562 1,048,660
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:    
Acquisition through issuance of promissory notes 375,000 0
Contingent consideration resulting from acquisitions 888,527 4,437,685
Equity issued in connection with acquisitions 0 1,601,677
Conversion of convertible note to common stock 0 587,835
Vehicle financing obtained 30,442 78,421
Purchase of prepaid insurance through assumption of note 374,785 486,858
Dividends declared, not paid 159,236 0
SUPPLEMENTAL INFORMATION - Cash paid during the year for:    
Income taxes 9,759 5,230
Interest $ 256,269 $ 147,192