Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.3.0.814
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss $ (5,416,317) $ (464,019)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Provision for bad debts 4,344 $ 91,831
Regional developer fees recognized upon acquisition of development rights (254,250)
Net franchise fees recognized upon termination of franchise agreements (480,250)
Notes receivable issued for payment of transfer fees (49,850)
Depreciation and amortization 822,489 $ 141,707
Gain on sale of property and equipment (11,500)
Deferred income taxes 147,800
Bargain purchase gain (384,214)
Stock based compensation expense 646,077 $ 42,047
Changes in operating assets and liabilities, net of effects from acquisitions:    
Restricted cash 36,145 (158,950)
Accounts receivable 94,684 (8,582)
Income taxes receivable (53,989) (320,290)
Prepaid expenses and other current assets 224,131 (45,230)
Deferred franchise costs (18,100) $ 178,000
Deposits and other assets (125,594)
Accounts payable and accrued expenses 164,945 $ 450,515
Co-op funds liability (26,834) 44,971
Payroll liabilities 779,271 188,159
Other liabilities (35,294) 56,547
Deferred rent $ 62,549 543,563
Income taxes payable (419,297)
Deferred revenue $ (134,925) (435,354)
Net cash used in operating activities (4,008,682) $ (114,382)
Cash flows from investing activities:    
Cash paid for acquisitions (4,652,525)
Reacquisition and termination of regional developer rights (1,075,500)
Purchase of property and equipment (1,461,125) $ (538,323)
Proceeds received on sale of property and equipment 11,500 2,500
Payments received on notes receivable 21,562 19,301
Net cash used in investing activities $ (7,156,088) (516,522)
Cash flows from financing activities:    
Deferred offering costs $ (511,921)
Repayments on note payable $ (110,000)
Net cash used in financing activities (110,000) $ (511,921)
Net decrease in cash (11,274,770) (1,142,825)
Cash at beginning of period 20,796,783 3,516,750
Cash at end of period $ 9,522,013 2,373,925
Supplemental cash flow disclosures:    
Cash paid for income taxes $ 420,250
Cash paid for interest $ 1,445