Cash Flow

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (2,875,200) $ (246,300)
Income from discontinued operations 41,000 3,366,600
Loss from continuing operations (2,916,200) (3,612,900) [1]
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization [2] 395,300 595,300 [1]
Stock-based compensation expense 87,300 94,000
Stock issued for services 115,000  
Non-cash expense for interest, common stock issued for debt penalty 1,168,900 1,009,000
Amortization of note discount (29,600)  
Non-cash expense for interest, warrants - accretion of debt discount (35,500) 6,200
Non-cash expense for extension of warrants   114,900
Non-cash expense for issuance of warrants   174,000
Gain on settlement   (102,300)
Gain on debt extinguishment (128,000)  
Changes in operating assets and liabilities:    
Accounts receivable (569,000) 254,300
Costs in Excess of billings on uncompleted contracts   13,600
Prepaid expenses and other assets 205,100 160,500
Accounts payable and accrued liabilities 320,000 (278,700)
Revenue contract liabilities 512,300 (490,700)
Deferred revenue (216,100) (127,900)
Payroll taxes payable 16,500 (1,300)
Net cash used by operating activities (1,074,000) (2,192,000)
Cash flows from investing activities:    
Purchase of property and equipment (15,600) (240,800)
Proceeds (purchase) of intangibles (100) (15,500)
Proceeds from sale of discontinued operations, net of costs   2,285,500
Distributions for notes receivable   (300,000)
Proceeds from notes receivable 224,000  
Net cash provided by investing activities 208,300 1,729,200
Cash flows from financing activities:    
Payments of notes and capital lease obligations (761,200) (980,900)
Proceeds from short-term notes 850,000 750,000
Proceeds from warrant extensions   148,600
Proceeds from outside minority investment in new subsidiary 300,000  
Proceeds from the sale of common stock and warrants, net of expenses 420,000  
Net cash provided by (used in) financing activities 808,800 (82,300)
Net cash flows from discontinued operations 41,000 461,400
Net decrease in cash (15,900) (83,700)
Cash at the beginning of period 54,100 [3] 233,200
Cash at the end of period 38,200 149,500
Supplemental disclosures of cash flow information:    
Cash paid for interest 48,800 197,600
Financing of prepaid insurance premiums $ 373,900 $ 438,300
[1] Excludes discontinued operations.
[2] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.
[3] These numbers were derived from the audited financial statements for the year ended December 31, 2017.

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