v3.8.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2017
Dec. 31, 2016
Current Assets:    
Cash $ 827 $ 1,790
Accounts receivable, net of allowances of $1,166 and $914, respectively 8,041 13,952
Inventory, net of reserves of $263 and $84, respectively 165
Loans receivable, net of reserves of $913 and $891, respectively 3,359 382
Other current assets 3,903 2,100
Total current assets 16,130 18,389
Property and equipment, net 118 533
Goodwill 10,185 23,368
Customer lists, net 5,582 8,589
Tradenames, net 1,471 3,178
Other intangible assets, net 256
Cost method investment 340
Other assets 160 256
Total assets 33,986 54,569
Current Liabilities:    
Accounts payable 9,188 10,907
Accrued expenses 13,688 10,721
Deferred revenue 4,034 3,058
Income taxes payable 94 53
Bank debt 116 121
Notes payable, related parties 9,531
Contingent consideration 515
Derivative financial instruments 2,826 1,749
Term loans, current portion, net of debt discount 27,296 21,147
Total current liabilities 57,242 57,802
Long-term Liabilities:    
Notes payable, related parties, net of current portion 8,632
Deferred income taxes 538 1,002
Term loans, net of current portion, net of debt discount 1,166 1,860
Derivative financial instruments 1,690 1,316
Total long-term liabilities 3,394 12,810
Total Liabilities 60,636 70,612
Commitments and Contingencies
Stockholders' Deficit:    
Series J Preferred Stock; $0.0001 par value; 50,000,000 shares authorized; 1,000 and 0 issued and outstanding as of September 30, 2017 and December 31, 2016, respectively
Common stock; $0.0001 par value; 1,000,000,000 shares authorized; 405,198,809 and 28,516,804 issued and 405,165,060 and 28,210,003 outstanding as of September 30, 2017 and December 31, 2016, respectively 39 2
Common stock warrants, no par 771 1,727
Treasury stock, at cost - 33,750 and 306,801 shares at September 30, 2017 and December 31, 2016, respectively (2) (1)
Additional paid-in capital 153,026 130,869
Accumulated deficit (180,661) (148,983)
Total InterCloud Systems, Inc. stockholders' deficit (26,827) (16,386)
Non-controlling interest 177 343
Total stockholders' deficit (26,650) (16,043)
Total liabilities and stockholders' deficit $ 33,986 $ 54,569

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v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Statements of Operations [Abstract]        
Service revenue $ 9,912 $ 17,192 $ 31,249 $ 52,663
Product revenue 122 2,361 856 7,113
Total revenue 10,034 19,553 32,105 59,776
Cost of revenue 7,278 13,940 24,354 44,530
Gross profit 2,756 5,613 7,751 15,246
Operating expenses:        
Depreciation and amortization 253 565 959 1,677
Salaries and wages 2,358 5,088 7,962 13,399
Selling, general and administrative 1,340 3,757 6,468 11,826
Goodwill impairment charge   3,767
Intangible asset impairment charge 959
Total operating expenses 3,951 9,410 20,115 26,902
Loss from operations (1,195) (3,797) (12,364) (11,656)
Other income (expenses):        
Change in fair value of derivative instruments 3,194 11,191 (351) 15,987
Interest expense (1,795) (2,833) (7,353) (10,966)
Gain on conversion of debt 68 416
Loss on extinguishment of debt, net (4,414) (1,630) (5,468) (9,442)
Loss on investment in equity method investee (1) (30)
Loss on disposal of subsidiary (5,226)
Other expense (1,350) (927) (1,471) (244)
Total other (expense) income (4,365) 5,868 (19,869) (4,279)
(Loss) income from continuing operations before income taxes (5,560) 2,071 (32,233) (15,935)
(Benefit from) provision for income taxes (31) 48 (389) 164
Net (loss) income from continuing operations (5,529) 2,023 (31,844) (16,099)
Gain on discontinued operations, net of tax     465
Net (loss) income (5,529) 2,023 (31,844) (15,634)
Net loss (income) attributable to non-controlling interest 31 44 166 (22)
Net (loss) income attributable to InterCloud Systems, Inc. common stockholders $ (5,498) $ 2,067 $ (31,678) $ (15,656)
Basic net (loss) income per share attributable to InterCloud Systems, Inc. common stockholders:        
Net (loss) income from continuing operations $ (0.01) $ 0.22 $ (0.19) $ (1.91)
Net income on discontinued operations, net of taxes 0.06
Net (loss) income per share (0.01) 0.22 (0.19) (1.85)
Diluted net (loss) income per share attributable to InterCloud Systems, Inc. common stockholders:        
Net (loss) income from continuing operations (0.01) 0.01 (0.19) (1.91)
Net income on discontinued operations, net of taxes 0.06
Net (loss) income per share $ (0.01) $ 0.01 $ (0.19) $ (1.85)
Basic weighted average common shares outstanding 436,049,406 9,253,135 169,069,899 8,194,650
Diluted weighted average common shares outstanding 436,049,406 25,425,642 169,069,899 8,194,650

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (31,844) $ (15,634)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on discontinued operations (465)
Provision for bad debts 455 135
Depreciation and amortization 959 1,677
Amortization of debt discount and deferred debt issuance costs 4,598 5,340
Stock compensation for services 1,828 2,359
Issuance of shares to non-employees for services 12 189
Change in fair value of derivative instruments 351 (15,987)
Deferred income taxes (464) (35)
Goodwill impairment charge 3,767
Intangible asset impairment charge 959
Gain on conversion of debt (416)
Loss on extinguishment of debt 5,468 9,442
Loss on disposal of subsidiary 5,226
Loss on investment in equity method investee 23
Changes in operating assets and liabilities:    
Accounts receivable 2,728 1,615
Inventory 165 831
Other assets (1,025) (4,178)
Accounts payable and accrued expenses 4,638 3,441
Income taxes 40
Deferred revenue 1,067 (1,245)
Net cash used in operating activities of continuing operations (1,072) (12,908)
Net cash provided by operating activities of discontinued operations 413
Net cash used in operating activities (1,072) (12,495)
Cash flows from investing activities:    
Purchases of equipment (29) (124)
Issuance of notes receivable (201) (1,035)
Cash proceeds from sale of Highwire 4,000
Cash proceeds from sale of SDNE 1,134
Net cash paid upon disposal of the AWS Entities (105)
Net cash paid upon the disposal of Nottingham (8)
Cash received for acquired assets 112
Net cash provided by (used in) investing activities of continuing operations 4,791 (1,047)
Net cash provided by investing activities of discontinued operations 21,887
Net cash provided by investing activities 4,791 20,840
Cash flows from financing activities:    
Proceeds from bank borrowings 15
Repayments of bank borrowings (5) (8)
Proceeds from term loans 380 495
Debt issuance costs on new term loans (50)
Term loan-related repayments from proceeds of sale of subsidiary (3,625)
Repayment of term loans (916) (14,154)
Repayments of receivables purchase agreements (480)
Cancellations of shares issued for interest (1)
Net cash used in financing activities (4,682) (13,667)
Net decrease in cash (963) (5,322)
Cash, beginning of period 1,790 7,944
Cash, end of period 827 2,622
Supplemental disclosures of cash flow information:    
Cash paid for interest 189 3,011
Cash paid for income taxes 42 125
Non-cash investing and financing activities:    
Issuance of shares of common stock pursuant to conversion of debt 13,886 5,035
Issuance of warrants pursuant to acquisition 36
Issuance of shares of common stock pursuant to acquisition 1,173
Addition to debt discount 2,387 2,941
Issuance of shares of common stock in lieu of cash compensation 189
Issuance of shares of common stock pursuant to loan covenants 828
Issuance of warrants for settlement of accounts payable 460
Issuance of warrants pursuant to JGB Waltham and JGB Concord amendment 972
Issuance of shares of common stock for payout of incentives earned 50
Issuance of shares of common stock pursuant to bridge financing agreement 320
Issuance of shares of Series J preferred stock pursuant to conversion of related-party debt $ 4,917

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