Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Operating activities:    
Net income (loss) $ 2,104,331 $ (687,702)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 758,526 1,323,542
Deferred rent payable 187,472 201,078
Deferred taxes 140,333 37,832
Accrued interest on member loans    185,204
(Income) loss on equity method investments (320,336) (400,208)
Derivative income (2,784,711)   
Issuance of stock-based compensation 167,368  
Changes in operating assets and liabilities:    
Accounts receivable (449,750) (737,813)
Inventory 12,501 (13,075)
Prepaid expenses and other current assets 139,151 (624,647)
Other intangibles     
Security deposits 109,465 13,713
Other assets (921,595) (5,405)
Accounts payable (605,824) (308,608)
Accrued expenses (1,509,169) (382,768)
Deferred revenue 51,993 (3,590)
Net cash used in operating activities (2,922,534) (1,402,447)
Investing activities:    
Purchase of property and equipment (2,752,083) (1,538,314)
Investment 358,855 84,914
Due from related parties 177,701 (278,062)
Net cash used in investing activities (2,215,527) (1,731,462)
Financing activities:    
Cash overdraft 309,954 (8,314)
Proceeds from line of credit 4,027,460 3,955,419
Repayment of line of credit (3,350,476) (2,044,308)
Repayment of notes payable (10,000) (10,000)
Proceeds from member loans   2,000,000
Contributions from members   520,000
Distributions to members (444,304) (976,217)
Net cash provided by financing activities 532,634 3,436,580
Effect of exchange rate changes on cash 43,693 62,986
Net (decrease) increase in cash (4,561,734) 365,657
Cash and cash equivalents, beginning of year 11,681,086 1,043,730
Cash and cash equivalents, end of year 7,119,352 1,409,387
Supplemental disclosure of cash flow data:    
Interest paid 107,806 161,916
Income taxes paid $ 278,910 $ 336,437