Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (31,333,569) $ (28,828,872)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation 26,106 4,262
Amortization of patents 1,824,162 7,453,004
Deferred tax asset 12,437,741
Deferred tax liability (1,044,998)
Loss on sale or disposal of subsidiaries, net 2,610,784
Gain on payable settlements (2,970,313)  
Gain on Fortress loan extinguishment (11,940,493)
Gain on extinguishment of warrant liability (305,358)
Change in warrant liability 21,855,723
Impairment of intangible assets 2,475,149 11,958,882
Impairment of goodwill 228,401 4,336,307
Stock based compensation 1,976,816 1,953,344
Amortization of debt discount 3,561,109
Warrant expense from warrant exchange to common stock 980,400
Non-cash interest, discount, and financing costs 1,223,341
Change in fair value of Clouding earnout (1,482,012) (1,832,872)
Revenue share liability
Allowance for doubtful accounts 12,226
Non-controlling interest 163,848
Litigation liability 2,150,000
Other non-cash adjustments 121,617
Changes in operating assets and liabilities:    
Accounts receivables 88,243 29,547
Bonds posted with courts 1,748,311
Prepaid expenses and other assets 335,194 (81,486)
Other non-current assets 201,203
Accounts payable and accrued expenses (1,253,875) 682,253
Net cash provided by (used in) operating activities (1,069,644) 10,172,607
CASH FLOWS FROM INVESTING ACTIVITIES    
Acquisition of patents (3,681,358)
Purchase of property and equipment (7,788) (8,388)
Net cash used in investing activities (7,788) (3,689,746)
CASH FLOWS FROM FINANCING ACTIVITIES    
Payment on note payable (1,273,000) (8,708,687)
Proceeds received on issuance of notes payable 5,488,693
Proceeds received on private placement 16,074,416 4,654,080
Proceeds from warrant purchase 17,410
Proceeds received on exercise of warrants 141,100 46,667
Net cash provided by (used in) financing activities 20,448,619 (4,007,890)
Effect of foreign exchange rate changes 317,867 (31,808)
Net increase in cash and cash equivalents 9,950,215 2,443,163
Cash and cash equivalents — beginning of year 4,998,314 2,555,151
Cash and cash equivalents — end of year 14,948,529 4,998,314
SUPPLEMENTAL CASH FLOW INFORMATION    
Cash paid for interest expense 1,543,925 1,917,034
Cash paid during the year for income taxes 5,459 43,052
Supplemental schedule of non-cash investing and financing activities:    
Issuance of Series D Preferred Stock 678,713
Conversion of Series B Preferred Stock 20
Conversion of Series D Preferred Stock 63
Warrants converted to Series E preferred stock 21,525,410
Common stock issued for note conversion 1,446,053
Restricted stock issuance 78
Warrants exercised / reclass to equity 18,187  
Discount of note payable 1,482,271
Beneficial conversion feature 4,017,729
Common stock issued for account payable 331,739
Common stock issued for note conversion 103,750
Note payable issuance in conjunction with the acquisition of patent $ 2,717,220