Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.3.0.814
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
OPERATING ACTIVITIES:    
Net loss $ (3,886,613) $ (3,513,827)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 3,499,185 1,793,289
Deferred rent (7,722) 7,056
Deferred revenue (19,198) (25,839)
Deferred income taxes 0 153,364
Provision for doubtful accounts 90,116 62,451
Foreign exchange (gain) loss (120,423) 58,164
Gain from reduction in referral fee 0 (105,523)
Interest accretion on debt 11,669 77,263
Stock-based compensation expense 496,961 137,550
Change in contingent consideration (1,283,294) (424,885)
Accrued CastleRock settlement payment (110,000) 0
Other 0 (13,236)
Changes in operating assets and liabilities:    
Accounts receivable 532,314 (2,103,074)
Other assets 103,331 (187,077)
Accounts payable and other liabilities (1,205,003) 2,059,820
Net cash used in operating activities (1,898,677) (2,024,504)
INVESTING ACTIVITIES:    
Capital expenditures (327,452) (571,217)
Cash paid for acquisitions and customer contracts (120,562) (11,536,640)
Advances to majority shareholder 0 (2,463)
Repayment of advances to majority shareholder 0 2,463
Net cash used in investing activities (448,014) (12,107,857)
FINANCING ACTIVITIES:    
Proceeds from IPO of common stock, net of costs in 2014 0 17,167,295
Proceeds from note payable to majority shareholder 410,000 165,000
Repayments of note payable to majority shareholder (880,089) (430,591)
Proceeds from long term debt, net of costs 3,585,335 0
Repayments of notes payable - other (715,123) (958,400)
Proceeds from line of credit 8,663,766 2,685,000
Repayments of line of credit (7,878,766) (2,500,000)
Payment of preferred stock related costs (242,182) 0
Net cash provided by financing activities 2,942,941 16,128,304
EFFECT OF EXCHANGE RATE CHANGES ON CASH (31,668) (235)
NET INCREASE IN CASH 564,582 1,995,708
CASH - Beginning of the period 1,048,660 497,944
CASH - End of period 1,613,242 2,493,652
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:    
Vehicle financing obtained 20,443 37,114
Contingent consideration resulting from acquisitions 1,002,445 4,618,508
Equity issued in connection with acquisitions 0 1,601,678
Conversion of note to common stock 0 587,835
Purchase of prepaid insurance through assumption of note 374,785 486,858
SUPPLEMENTAL INFORMATION - Cash paid during the period for:    
Income taxes 9,759 5,230
Interest $ 181,108 $ 129,857