Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (9,284,267) $ (598,863)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 3,758 2,833
Amortization of intangible assets 5,627,461 1,392,326
Non-cash equity compensation 1,413,724 $ 1,234,983
Stock issued for services 750,334  
Non-cash interest, discounts and financing costs 1,625,322  
Deferred tax liability (509,207)  
Deferred tax assets (5,307,139)  
Impairment of IP 766,498  
Change in fair value of Clouding IP earn out (2,304,301)  
Other non-cash adjustments 14,980  
Changes in operating assets and liabilities    
Accounts receivable (487,328) $ 252,050
Prepaid expenses and other current assets 51,455 (218,037)
Accounts payable and accrued expenses 2,046,662 334,294
Net cash provided by (used in) operating activities $ (5,592,048) 2,399,586
Cash flows from investing activities:    
Acquisition of patents   $ (5,100,800)
Purchase of property, equipment and other intangible assets $ (20,668)  
Net cash provided by (used in) investing activities $ (20,668) $ (5,100,800)
Cash flows from financing activities:    
Payment on note payable in connection with the acquisition of IP Liquidity   (937,500)
Cash received upon exercise of warrant   138,222
Proceeds received from sale of Preferred Stock / common stock, net of issuance costs   $ 6,388,266
Payment on note payable in connection with the acquisition of IP Liquidity $ (1,109,375)  
Payment on assumed note payable in connection with the acquisition of Orthophoenix (5,000,000)  
Payment on note payable in connection with the acquisition of Dynamic Advances (2,624,375)  
Payment on note payable in connection with the acquisition of Medtech and Orthophoenix (4,200,000)  
Payment on Due to MdR Escrow (TLI) (50,000)  
Conversion of AP to note payable 705,093  
Payment on note payable in connection with the acquisition of Sarif (276,250)  
Repayment on convertible notes (5,050,000)  
Cash received upon issuance of notes payable (net of issuance costs) 19,600,000  
Cash received upon exercise of warrant 18,751  
Net cash provided by financing activities 2,013,844 $ 5,588,988
Effect of exchange rate changes on cash 3,545  
Net increase in cash (3,595,327) $ 2,887,774
Cash at beginning of period 5,082,569 3,610,261
Cash at end of period 1,487,242 6,498,035
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for: Interest expenses and loan fees 805,106 $ 20
Cash paid for: Taxes paid 14,662  
Loan fees $ 400,000  
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Series B Preferred Stock issued in connection with the acquisition of Dynamic Advances, LLC   $ 1,403,690
Series B Preferred Stock issued in connection with the acquisition of IP Liqudity Ventures, LLC   1,403,690
Common stock issued in connection with the acquisition of Selene Communication Technologies, LLC   980,000
Value of warrants pertaining to equity issuance   11,595
Notes payable in connection with the acquisition of Dynamic Advances, LLC, IP Liquidity Ventures, LLC, and Selene Communication Technologies, LLC   $ 6,000,000
Common stock issued in conjunction with note payable $ 1,000,000  
Warrants issued in conjunction with note payable 318,679  
Revenue share liability incurred in conjunction with note payable 1,000,000  
Non-cash interest increase in debt assumed in the acquisition of Orthophoenix 750,000  
Notes payable issued in conjunction with acquisition of BATO patent $ 10,000,000