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 ($)
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (9,413,407) $ (5,416,317)
Adjustments to reconcile net loss to net cash used in operating activities:    
(Recovery) provision for bad debts (10,830) 4,344
Regional developer fees recognized upon acquisition of development rights (138,500) (254,250)
Net franchise fees recognized upon termination of franchise agreements (314,859) (480,250)
Notes receivable issued for payment of transfer fees (49,850)
Depreciation and amortization 1,908,238 822,489
Gain on sale of property and equipment (11,500)
Bargain purchase gain (384,214)
Deferred income taxes 147,800
Stock based compensation expense 1,012,700 646,077
Changes in operating assets and liabilities, net of effects from acquisitions:    
Restricted cash (91,383) 36,145
Accounts receivable (1,108,181) 94,684
Income taxes receivable 32,167 (53,989)
Prepaid expenses and other current assets (525,905) 224,131
Deferred franchise costs 194,300 (18,100)
Deposits and other assets 49,649 (125,594)
Accounts payable (1,183,328) 77,817
Accrued expenses (119,990) 87,128
Co-op funds liability (95,893) (26,834)
Payroll liabilities (1,079,085) 779,271
Other liabilities 33,837 (35,294)
Deferred rent 912,730 62,549
Deferred revenue (405,977) (134,925)
Net cash used in operating activities (10,343,717) (4,008,682)
Cash flows from investing activities:    
Cash paid for acquisitions (811,450) (4,652,525)
Reacquisition and termination of regional developer rights (325,000) (1,075,500)
Purchase of property and equipment (1,497,874) (1,461,125)
Proceeds received on sale of property and equipment 11,500
Payments received on notes receivable 25,945 21,562
Net cash used in investing activities (2,608,379) (7,156,088)
Cash flows from financing activities:    
Issuance of common stock, offering costs adjustment (1,042)
Purchases of treasury stock under employee stock plans (83,391)
Proceeds from exercise of stock options 66,527
Repayments on notes payable (436,350) (110,000)
Net cash used in financing activities (454,256) (110,000)
Net decrease in cash (13,406,352) (11,274,770)
Cash at beginning of period 16,792,850 20,796,783
Cash at end of period $ 3,386,498 $ 9,522,013