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, 2016
Dec. 31, 2015
Operating activities:    
Net (loss) income $ (16,455,869) $ 7,101,219
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 2,647,333 2,191,450
Amortization of discount on warrants 70,500 0
Deferred rent payable 1,880,595 4,854,901
Deferred taxes 10,042,641 (10,058,254)
Income from equity method investments (674,289) (1,038,854)
Derivative income (100,000) (6,141,000)
Stock-based compensation 837,995 811,658
Impairment of fixed assets 95,773 2,975,744
Changes in operating assets and liabilities:    
Accounts receivable (826,374) (343,426)
Inventory (156,732) (12,814)
Prepaid expenses and other current assets 1,731,286 (973,614)
Due from related parties, net 811,750 (159,574)
Security deposits 208,503 (76,060)
Other assets 194,220 101,455
Accounts payable 907,648 (931,577)
Accrued expenses 358,677 2,632,803
Deferred revenue 528,563 1,108,376
Net cash provided by operating activities 2,102,220 2,042,433
Investing activities:    
Purchase of property and equipment (10,609,838) (13,582,852)
Distribution from equity investment 519,095 930,936
Net cash used in investing activities (10,090,743) (12,651,916)
Financing activities:    
Cash overdraft (293,816) 888,156
Net proceeds from line of credit 0 6,000,000
Proceeds from term promissory notes 6,250,000 0
Repayment of term loan (2,495,000) (1,495,000)
Repayment of equipment financing agreement (226,872) (64,282)
Proceeds from rights offering (3,862,990) 0
Proceeds from liquidating trust 1,197,375 0
Distributions to non-controlling interests (252,985) (590,913)
Net cash provided by financing activities 8,041,692 4,737,961
Effect of exchange rate changes on cash (297,259) (191,610)
Net decrease in cash and cash equivalents (244,090) (6,063,132)
Cash and cash equivalents, beginning of year 1,841,872 7,905,004
Cash and cash equivalents, end of year 1,597,782 1,841,872
Supplemental disclosure of cash flow data:    
Interest paid 856,291 411,789
Income taxes paid 111,600 474,658
Noncash investing and financing activities:    
Noncash property, fixtures and equipment additions from equipment financing 991,141 721,045
Noncash discount on detachable warrants $ 905,000 $ 0