Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Operating activities:    
Net income $ 7,101,219 $ 5,040,072
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 2,191,450 1,438,728
Deferred rent payable 4,854,901 3,087,012
Deferred taxes (10,058,254) 197,276
Income from equity method investments (1,038,854) (1,149,060)
Derivative income (6,141,000) (3,854,000)
Stock-based compensation 811,658 538,954
Impairment of fixed assets 2,975,744 467,238
Changes in operating assets and liabilities:    
Accounts receivable (343,426) (796,336)
Inventory (12,814) (160,913)
Prepaid expenses and other current assets (973,614) (1,752,491)
Due from related parties, net (159,574) (960,481)
Security deposits (76,060) (1,383,765)
Other assets 101,455 540,433
Accounts payable (931,577) 727,171
Accrued expenses 2,632,803 (1,115,479)
Deferred revenue 1,108,376 127,950
Net cash provided by operating activities 2,042,433 992,309
Investing activities:    
Purchase of property and equipment (13,582,852) (7,276,180)
Purchase of minority interests 0 (75,000)
Distribution from equity investment 930,936 885,888
Net cash used in investing activities (12,651,916) (6,465,292)
Financing activities:    
Cash overdraft 888,156 (171,245)
Net proceeds from line of credit 0 2,078,205
Proceeds from term loan 6,000,000 1,079,930
Repayment of term loan (1,495,000) 0
Repayment of equipment financing agreement (64,282) 0
Repayment of notes payable 0 (15,000)
Distributions to non-controlling interests (590,913) (977,867)
Net cash provided by financing activities 4,737,961 1,994,023
Effect of exchange rate changes on cash (191,610) (297,122)
Net decrease in cash and cash equivalents (6,063,132) (3,776,082)
Cash and cash equivalents, beginning of year 7,905,004 11,681,086
Cash and cash equivalents, end of year 1,841,872 7,905,004
Supplemental disclosure of cash flow data:    
Interest paid 411,789 294,726
Income taxes paid 474,658 808,622
Noncash investing and financing activities:    
Noncash property, fixtures and equipment additions $ 721,045 $ 0