Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (6,786,515) $ (3,759,593)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Recovery) Provision for bad debts (10,830) 4,345
Regional developer fees recognized upon acquisition of development rights (138,500) (159,500)
Net franchise fees recognized upon termination of franchise agreements (184,159) (343,250)
Depreciation and amortization 1,212,659 401,098
Gain on sale of property and equipment (11,500)
Deferred income taxes
Stock based compensation expense 757,394 289,499
Changes in operating assets and liabilities, net of effects from acquisitions:    
Restricted cash (179,893) (57,392)
Accounts receivable (1,053,714) 241,646
Income taxes receivable 32,167 103,084
Prepaid expenses and other current assets 6,338 278,730
Deferred franchise costs 211,650 5,700
Deposits and other assets 12,637 (40,423)
Accounts payable (1,120,615) (65,521)
Accrued expenses (268,436) 246,192
Co-op funds liability (96,715) 95,253
Payroll liabilities (954,687) 256,881
Other liabilities 44,826 (23,734)
Deferred rent 877,156 (36,356)
Deferred revenue (416,001) 31,273
Net cash used in operating activities (8,055,238) (2,543,568)
Cash flows from investing activities:    
Cash paid for acquisitions (811,451) (4,242,975)
Reacquisition and termination of regional developer rights (325,000) (945,000)
Purchase of property and equipment (1,341,402) (485,308)
Proceeds received on sale of property and equipment 11,500
Payments received on notes receivable 11,904 13,559
Net cash used in investing activities (2,465,949) (5,648,224)
Cash flows from financing activities:    
Issuance of common stock, offering costs adjustment (1,042)
Proceeds from exercise of stock options 65,592
Repayments on notes payable (217,450) (25,000)
Net cash used in financing activities (152,900) (25,000)
Net decrease in cash (10,674,087) (8,216,792)
Cash at beginning of period 16,792,850 20,796,783
Cash at end of period $ 6,118,763 $ 12,579,991