Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.4.0.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows from operating activities:    
Net loss $ (3,525,134) $ (1,903,723)
Adjustments to reconcile net loss to net cash used in operating activities:    
Provision for bad debts 847
Regional developer fees recognized upon acquisition of development rights $ (159,500)
Net franchise fees recognized upon termination of franchise agreements $ (41,100)
Depreciation and amortization $ 575,544 $ 122,596
Gain on sale of property and equipment (11,500)
Stock based compensation expense $ 197,669 132,287
Changes in operating assets and liabilities, net of effects from acquisitions:    
Restricted cash (71,985) (113,985)
Accounts receivable (902,190) $ (71,611)
Income taxes receivable 32,021
Prepaid expenses and other current assets (78,997) $ 295,599
Deferred franchise costs 121,602 74,550
Deposits and other assets (3,339) (8,401)
Accounts payable (1,229,146) (16,876)
Accrued expenses (234,291) 321,085
Co-op funds liability (96,546) 111,957
Payroll liabilities (829,933) 9,523
Other liabilities 9,790 (12,117)
Deferred rent 628,181 (14,794)
Deferred revenue (311,874) (98,998)
Net cash used in operating activities $ (5,759,728) (1,343,061)
Cash flows from investing activities:    
Cash paid for acquisitions (1,830,000)
Reacquisition and termination of regional developer rights $ (275,000) (545,000)
Purchase of property and equipment $ (287,942) (14,021)
Proceeds received on sale of property and equipment 11,500
Payments received on notes receivable $ 17,258 6,729
Net cash used in investing activities (545,684) $ (2,370,792)
Cash flows from financing activities:    
Issuance of common stock, offering costs adjustment (1,042)
Proceeds from exercise of stock options 1,600
Repayments on notes payable (120,500)
Net cash used in financing activities (119,942)
Net decrease in cash (6,425,354) $ (3,713,853)
Cash at beginning of period 16,792,850 20,796,783
Cash at end of period $ 10,367,496 $ 17,082,930