Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net income (loss) $ 2,923,742 $ (2,351,355)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Depreciation 4,357 1,944
Amortization of patents and website 2,872,638 860,657
Amortization of expenses connected to equity to be issued for services 355,711 121,564
Net reversal of expense related to forfeiture of unvested stock (179,708)   
Impairment of Goodwill 2,144,488   
Deferred tax asset (1,949,401)   
Income tax payable 467,997   
Stock based compensation on warrants 31,182 94,930
Stock based compensation 2,070,813 1,347,774
Non-cash revenue    (1,000,000)
Non-cash other income (3,930)   
Realized loss - available for sale    38,819
Gain on sale of assets of discontinued operations    (168,216)
Other non-cash adjustments 24,994   
Changes in operating assets and liabilities    
Accounts receivable (10,182,950) (330,000)
Assets of discontinued operations - current portion    82,145
Prepaid expenses and other current assets (207,182) 39,000
Accounts payable and accrued expenses 4,860,286 315,394
Net cash provided by (used in) operating activities 3,233,037 (947,344)
Cash flows from investing activities:    
Acquisition of patents (6,850,800) (1,950,000)
Purchase of property, equipment, and other intangible assets (24,903) (10,000)
Proceeds received from sale of marketable securities    129,397
Sale of real estate property (discontinuted operations)    1,052,320
Capitalized cost related to improvements of real estate property (discontinued operations)    (16,750)
Net cash used in investing activities (6,875,703) (795,033)
Cash flows from financing activities:    
Payment on note payable in connection with the acquisition of IP Liquidity (937,500)   
Payment on note payable in connection with the acquisition of Cyberfone Systems, LLC    (500,000)
Proceeds from sale of preferred and common stock, net of issuance costs 6,388,266 5,752,596
Cash received upon exercise of warrant 138,222   
Net cash provided by financing activities 5,588,988 5,252,596
Net increase in cash 1,946,322 3,510,219
Cash at beginning of period 3,610,262 2,354,169
Cash at end of period 5,556,584 5,864,388
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for: Interest 20 702
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued in connection with the acquisition of Cyberfone Systems, LLC    2,280,000
Common stock issued in connection with the acquisition of Clouding Corp. 281,000   
Earn-out liabilities in connection with the acquisition of Clouding Corp. 13,119,000   
Common stock granted in connection with the acquisition of TLI Communications, LLC 817,800   
Series B Convertible Preferred Stock issued in connection with the acquisition of Dynamic Advances LLC 1,403,690   
Series B Convertible Preferred Stock issued in connection with the acquisition of IP Liquidity Ventures, LLC 1,403,690   
Common stock issued in connection with the acquisition of Selene Communication Technologies 980,000   
Value of warrants pertaining to equity issuance 11,595 11,595
Notes payable issued in connection with the acquisition of IP Liquidity Ventures, LLC, Dynamic Advances, LLC, Selene Communication Technologies, LLC, and Clouding Corp. 7,000,000   
Common Stock issued for prepaid services (298,301) 441,256
Acquisition of patents in connection with a non-cash settlement    $ 1,000,000