XML 22 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Net income (loss) $ 4,225,197 $ (16,971,797)
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:    
Amortization of debt discount 1,134,432 327,455
Loss on extinguishment of debt   2,086,280
Initial fair value of derivative warrant liability included as interest expense   5,189,000
(Gain) loss on derivative warrant liability (10,580,000) 6,032,000
Depreciation and amortization expense 88,788 292,329
Share-based payments 2,995,251 1,974,191
Changes in operating assets and liabilities:    
Accounts receivable (101,192) (143,141)
Prepaid expenses and other assets (109,384) (12,321)
Inventory (22,462) (11,627)
Accounts payable and accrued liabilities 245,357 174,948
Net cash used in operating activities: (2,124,013) (1,062,683)
INVESTING ACTIVITIES    
Purchase of property and equipment (38,925) (11,615)
Lending on Note receivable – related party (26,500)  
Purchase of GC Finance Arizona LLC (106,000)  
Net cash used in investing activities (171,425) (11,615)
FINANCING ACTIVITIES    
Proceeds from exercise of warrants and stock options 1,599,181  
Proceeds from the sale of common stock – accrued stock payable 175,000  
Borrowings under notes payable   2,500,000
Increase in Infinity Note – related party   497,500
Payments on notes payable   (917,307)
Net cash provided by financing activities 1,774,181 2,080,193
NET (DECREASE) INCREASE IN CASH (521,257) 1,005,895
CASH, BEGINNING OF PERIOD 773,795 58,711
CASH, END OF PERIOD 252,538 1,064,606
SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION    
Cash paid for interest 131,763 213,813
NON-CASH TRANSACTIONS    
Portion of warrant derivative liability recorded as additional paid-in capital upon exercise of warrants 7,301,000  
12% Note principal used to exercise 12% Warrants 668,750  
Acquisition of MHPS – accrued stock payable 155,000  
Derivative warrant liability recorded as debt discount   2,450,000
Warrants issued in connection with debt recorded as debt discount   31,100
10% Notes and 14% Mortgage Note Payable converted to 12% Notes   550,000
Chiefton Acquisition [Member]    
NON-CASH TRANSACTIONS    
Acquisition of MHPS – accrued stock payable $ 155,000  
IPG Acquisition [Member]    
NON-CASH TRANSACTIONS    
Issuance of common stock and warrants from accrued stock payable   $ 1,069,775