Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities:    
Net loss $ (28,828,872) $ (16,939,859)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 4,262 7,578
Amortization of patents and website 7,453,004 10,825,164
Provision for allowance for doubtful accounts 12,226 375,750
Deferred tax asset 12,437,741 (7,618,580)
Deferred tax liability (1,044,998) (660,455)
Impairment of intangible assets 11,958,882 5,793,409
Impairment of goodwill 4,336,307 0
Stock based compensation 1,817,344 2,490,175
Stock issued for services 136,000 1,245,834
Loss on debt extinguishment   1,416,915
Non-cash interest, discount, and financing costs 1,223,341 2,220,992
Change in fair value of Clouding earnout (1,832,872) (6,137,116)
Other non-cash adjustments 121,617 260,938
Changes in operating assets and liabilities    
Accounts receivable 29,547 (295,608)
Prepaid expenses and other assets (81,486) (116,791)
Bonds posted with courts 1,748,311 (45,915)
Accounts payable and accrued expenses 682,253 4,216,331
Net cash provided by (used in) operating activities 10,172,607 (2,961,238)
Cash flows from investing activities:    
Acquisition of patents (3,681,358)  
Purchase of property, equipment, and other intangible assets (8,388) (58,386)
Net cash used in investing activities (3,689,746) (58,386)
Cash flows from financing activities:    
Repayment of notes payable (5,379,103)  
Payment on MdR Escrow TLI   (50,000)
Cash received upon issuance of notes payable (net of issuance costs)   19,600,000
Cash received upon issuance of common stock (net of issuance costs) 4,654,130  
Cash received upon exercise of warrants 46,667 18,751
Repayment of convertible notes payable   (5,050,000)
Payments on note payable, net (375,805) (181,626)
Net cash provided (used in) by financing activities (4,007,890) 508,838
Effect of exchange rate changes on cash (31,808) (16,632)
Net increase (decrease) in cash 2,443,163 (2,527,418)
Cash at beginning of period 2,555,151 5,082,569
Cash at end of period 4,998,314 2,555,151
Cash paid for:    
Interest expense 1,917,304 1,982,140
Taxes paid 43,052 168,378
Loan fees   400,000
Cash invested in 3DNano 788,097  
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Common stock issued in conjunction with note payable   1,000,000
Warrant issued in conjunction with note payable   318,679
Revenue share liability incurred in conjunction with note payable   1,000,000
Common stock issued in conjunction with debt extinguishment   654,000
Includes officer loan 944,296  
Conversion of AP to notes payable   705,093
Medtech And Orthophoenix    
Cash flows from financing activities:    
Repayment of notes payable (2,953,779) (4,318,287)
Orthophoenix, LLC    
Cash flows from financing activities:    
Repayment of notes payable   (5,500,000)
Sarif Biomedical, LLC    
Cash flows from financing activities:    
Repayment of notes payable   (276,250)
IP Liquidity    
Cash flows from financing activities:    
Repayment of notes payable   (1,109,375)
Dynamic Advances, LLC    
Cash flows from financing activities:    
Payment on MdR Escrow TLI   (2,624,375)
Orthophoenix, LLC    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Non-cash interest increase in debt assumed in an acquisition   $ 750,000
License | 3D Nano    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Note payable issuance in conjunction with the acquisition 100,000  
GE | Patents    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Note payable issuance in conjunction with the acquisition 944,296  
Seimens | Patents    
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES    
Note payable issuance in conjunction with the acquisition $ 1,672,294