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
Cash flows from operating activities:    
Net loss $ (8,797,321) $ (3,031,220)
Adjustments to reconcile net loss to net cash used in operating activities:    
Provision for bad debts 61,629 $ 102,782
Regional developer fees recognized upon acquisition of development rights (254,250)
Regional developer fees recognized upon termination of regional developer agreements (282,750)
Net franchise fees recognized upon termination of franchise agreements (521,350)
Notes receivable issued for payment of transfer fees (59,850)
Depreciation and amortization 1,268,955 $ 210,123
(Gain) loss on sale of property and equipment (11,500) 10,127
Deferred income taxes 40,800 $ 1,758,100
Bargain purchase gain (261,147)
Stock based compensation expense 825,145 $ 101,830
Changes in operating assets and liabilties, net of effects from acquisitions:    
Restricted cash (160,706) (165,790)
Accounts receivable (99,963) (369,532)
Income taxes receivable 324,833 (395,814)
Prepaid expenses and other current assets 9,892 (352,196)
Deferred franchise costs 127,550 $ (20,400)
Deposits and other assets (39,235)
Accounts payable (291,480) $ 952,230
Accrued expenses 165,602 92,418
Co-op funds liability 14,474 132,471
Payroll liabilities 875,431 489,574
Other liabilities (105,973) (25,447)
Deferred rent $ 246,686 545,164
Income taxes payable (419,297)
Deferred revenue $ 128,049 (52,568)
Net cash used in operating activities (6,796,479) (437,445)
Cash flows from investing activities:    
Cash paid for acquisitions (4,925,525) $ (900,000)
Reacquisition and termination of regional developer rights $ (1,075,500)
Advances for reacquisition and termination of regional developer rights $ (507,500)
Purchase of property and equipment $ (4,065,946) (659,305)
Proceeds received on sale of property and equipment 11,500 2,500
Payments received on notes receivable 42,388 4,179
Net cash used in investing activities $ (10,013,083) (2,060,126)
Cash flows from financing activities:    
Proceeds from Issuance Initial Public Offering $ 22,425,000
Proceeds from issuance of common stock - follow-on public offering $ 14,374,998
Offering costs paid (1,351,403) $ (2,647,396)
Proceeds from exercise of stock options 534
Repayments on note payable (218,500)
Net cash provided by financing activities 12,805,629 $ 19,777,604
Net (decrease) increase in cash (4,003,933) 17,280,033
Cash at beginning of year 20,796,783 3,516,750
Cash at end of year $ 16,792,850 $ 20,796,783