Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Operating activities:    
Net income (loss) $ 3,131,299 $ (2,696,530)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 1,129,064 1,717,406
Deferred rent payable 289,275 41,553
Deferred taxes 140,333 42,426
Accrued interest on member loans    349,705
(Income) loss on equity method investments (588,996) (563,583)
Derivative expense (1,793,124)   
Stock-based compensation 326,753   
Changes in operating assets and liabilities:    
Accounts receivable (805,422) 347,715
Inventory 33,708 415,569
Prepaid expenses and other current assets 263,438 (526,033)
Other intangibles      
Security deposits 109,200 (10,789)
Other assets (43,109) (20,948)
Accounts payable (1,418,169) (566,782)
Accrued expenses (1,413,582) 423,160
Deferred revenue 83,963 (38,798)
Net cash provided by (used in) operating activities (559,245) (1,085,929)
Investing activities:    
Purchase of property and equipment (4,562,397) (1,424,476)
Purchase of minority interest (75,000)   
Investment 502,753 218,125
Due from related parties (60,487) (984,876)
Net cash used in investing activities (4,195,131) (2,191,227)
Financing activities:    
Cash overdraft 442,515 (105,664)
Proceeds from line of credit 6,897,940 5,950,000
Repayment of line of credit (5,087,551) (3,522,222)
Repayment of notes payable (15,000) (15,000)
Proceeds from member loans   2,000,000
Contributions from members   520,000
Distributions to members (760,605) (1,383,407)
Net cash provided by financing activities 1,477,299 3,443,707
Effect of exchange rate changes on cash (34,115) 105,711
Net (decrease) increase in cash (3,311,192) 272,262
Cash and cash equivalents, beginning of year 11,681,086 1,043,730
Cash and cash equivalents, end of year 8,369,894 1,315,992
Supplemental disclosure of cash flow data:    
Interest paid 107,070 237,433
Income taxes paid $ 217,172 $ 453,180