Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (3,062,035) $ (9,413,407)
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 (46,115) (314,859)
Depreciation and amortization 1,550,013 1,908,238
Gain on sale of fixed assets (34,355)
Loss on disposition or impairment 417,971
Deferred income taxes 66,697
Stock based compensation expense 412,512 1,012,700
Changes in operating assets and liabilities:    
Restricted cash 176,924 (91,383)
Accounts receivable (303,590) (1,108,181)
Income taxes receivable 38,960 32,167
Prepaid expenses and other current assets (105,252) (525,905)
Deferred franchise costs 139,369 194,300
Deposits and other assets 73,632 49,649
Accounts payable (336,534) (1,183,328)
Accrued expenses (168,332) (119,990)
Co-op funds liability 24,942 (95,893)
Payroll liabilities (216,540) (1,079,085)
Other liabilities (555,982) 33,837
Deferred rent (377,995) 912,730
Deferred revenue 889,213 (405,977)
Net cash used in operating activities (1,416,497) (10,343,717)
Cash flows from investing activities:    
Cash paid for acquisitions (811,450)
Reacquisition and termination of regional developer rights (325,000)
Purchase of property and equipment (190,589) (1,497,874)
Payments received on notes receivable 39,888 25,945
Net cash used in investing activities (150,701) (2,608,379)
Cash flows from financing activities:    
Borrowings on revolving credit note payable 1,000,000
Issuance of common stock, offering costs adjustment (1,042)
Purchases of treasury stock under employee stock plans (2,655) (83,391)
Proceeds from sale of treasury stock 292,671
Proceeds from exercise of stock options 127,466 66,527
Repayments on notes payable (231,500) (436,350)
Net cash provided by (used in) financing activities 1,185,982 (454,256)
Net decrease in cash (381,216) (13,406,352)
Cash at beginning of period 3,009,864 16,792,850
Cash at end of period $ 2,628,648 $ 3,386,498