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 ($)
 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net loss $ (1,647,064) $ (3,525,134)
Adjustments to reconcile net loss to net cash used in operating activities:    
Net franchise fees recognized upon termination of franchise agreements (41,100)
Depreciation and amortization 577,987 575,544
Loss on disposition or impairment 417,971
Deferred income taxes 36,220
Stock based compensation expense 95,065 197,669
Changes in operating assets and liabilities:    
Restricted cash 21,843 (71,985)
Accounts receivable (214,860) (902,190)
Income taxes receivable 38,960 32,021
Prepaid expenses and other current assets (393,995) (78,997)
Deferred franchise costs 159,519 121,602
Deposits and other assets 40,868 (3,339)
Accounts payable 34,230 (1,229,146)
Accrued expenses (138,455) (234,291)
Co-op funds liability 21,761 (96,546)
Payroll liabilities (353,326) (829,933)
Other liabilities 102,459 9,790
Deferred rent (309,367) 628,181
Deferred revenue 253,467 (311,874)
Net cash used in operating activities (1,256,717) (5,759,728)
Cash flows from investing activities:    
Reacquisition and termination of regional developer rights (275,000)
Purchase of property and equipment (39,325) (287,942)
Payments received on notes receivable 10,008 17,258
Net cash used in investing activities (29,317) (545,684)
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 116,277 1,600
Repayments on notes payable (163,500) (120,500)
Net cash provided by (used in) financing activities 952,777 (119,942)
Net decrease in cash (333,257) (6,425,354)
Cash at beginning of period 3,009,864 16,792,850
Cash at end of period $ 2,676,607 $ 10,367,496