Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:    
Net loss $ (2,658,227) $ (6,786,515)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Recovery) provision for bad debts (10,830)
Regional developer fees recognized upon acquisition of development rights (138,500)
Net franchise fees recognized upon termination of franchise agreements (31,200) (184,159)
Depreciation and amortization 1,081,212 1,212,659
Loss on disposition or impairment 417,971
Deferred income taxes 55,332
Stock based compensation expense 227,121 757,394
Changes in operating assets and liabilities:    
Restricted cash 53,980 (179,893)
Accounts receivable (161,302) (1,053,714)
Income taxes receivable 38,960 32,167
Prepaid expenses and other current assets (57,721) 6,338
Deferred franchise costs 164,469 211,650
Deposits and other assets 50,687 12,637
Accounts payable (83,620) (1,120,615)
Accrued expenses (32,572) (268,436)
Co-op funds liability 9,337 (96,715)
Payroll liabilities (140,877) (954,687)
Other liabilities (112,278) 44,826
Deferred rent (343,191) 877,156
Deferred revenue 787,262 (416,001)
Net cash used in operating activities (734,657) (8,055,238)
Cash flows from investing activities:    
Cash paid for acquisitions (811,451)
Reacquisition and termination of regional developer rights (325,000)
Purchase of property and equipment (106,254) (1,341,402)
Payments received on notes receivable 25,826 11,904
Net cash used in investing activities (80,428) (2,465,949)
Cash flows from financing activities:    
Borrowings on revolving credit note payable 1,000,000
Issuance of common stock, offering costs adjustment (1,042)
Proceeds from exercise of stock options 83,498 65,592
Repayments on notes payable (231,500) (217,450)
Net cash provided by (used in) financing activities 851,998 (152,900)
Net increase (decrease) in cash 36,913 (10,674,087)
Cash at beginning of period 3,009,864 16,792,850
Cash at end of period $ 3,046,777 $ 6,118,763