Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (3,759,593) $ (261,646)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Provision for bad debts 4,345  
Regional developer fees recognized upon acquisition of development rights (159,500)  
Net franchise fees recognized upon termination of franchise agreements (343,250)  
Depreciation and amortization 401,098 $ 88,885
Gain on sale of property and equipment $ (11,500)  
Deferred income taxes   $ (96,588)
Stock based compensation expense $ 289,499 27,922
Changes in operating assets and liabilties, net of effects from acquisitions:    
Restricted cash (57,392) (57,547)
Accounts receivable 241,646 $ 133,543
Income taxes receivable 103,084  
Prepaid expenses and other current assets 278,730 $ 16,025
Deferred franchise costs 5,700 28,700
Deposits and other assets (40,423) (133,274)
Accounts payable and accrued expenses 180,671 491,099
Co-op funds liability 95,253 (20,508)
Payroll liabilities 256,881 49,689
Other liabilities (23,734) 56,547
Deferred rent $ (36,356) 541,962
Income taxes payable   (419,297)
Deferred revenue $ 31,273 (186,250)
Other, net   14,556
Net cash (used in) provided by operating activities $ (2,543,568) $ 273,818
Cash flows from investing activities:    
Cash paid for acquisitions (4,242,975)  
Reacquisition and termination of regional developer rights (945,000)  
Purchase of property and equipment (485,308) $ (542,673)
Proceeds received on sale of property and equipment 11,500  
Payments received on notes receivable 13,559 $ 12,771
Net cash used in investing activities (5,648,224) $ (529,902)
Cash flows from financing activities:    
Repayments on note payable (25,000)  
Net cash used in financing activities (25,000)  
Net decrease in cash (8,216,792) $ (256,084)
Cash at beginning of period 20,796,783 3,516,750
Cash at end of period $ 12,579,991 3,260,666
Supplemental cash flow disclosures:    
Cash paid for income taxes   $ 420,250
Cash paid for interest $ 135