Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.8.0.1
Consolidated Statements of Cash Flows
$ in Thousands
 12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Cash Flows from Operating Activities:      
Net Loss $ (99,836) $ (71,290) $ (53,883)
Reconciliation of net loss to net cash used in operating activities:      
Depreciation expense 1,165 944 26
Noncash interest expense 0 0 167
Amortization of intangible asset 1,651 0 0
Amortization of debt discount 1,314 1,466 314
Amortization of product revenue license fee 534 183 0
Amortization of forgivable loans to registered representatives 693 176 0
Amortization of deferred clearing credit (209) (13) 0
Stock-based compensation expense 14,005 12,128 14,291
Issuance of common stock for research and development expenses 200 0 0
Issuance of subsidiaries' common shares for research and development expenses 50 0 0
Recovery for doubtful accounts (191) (47) 0
Deferred tax benefit 0 (73) 0
Common shares issuable for license expenses 0 1,682 0
Common shares issuable for PIK interest expense 500 0 0
Common shares issued for PIK interest expense 541 0 0
Change in fair value of investments (226) 1,071 1,675
Change in fair value of derivative liabilities (8,391) 1,039 438
Change in fair value of subsidiary convertible note 457 78 0
Loss on write off of investment 250 0 0
Research and development-licenses acquired, expense 4,164 3,838 11,406
Change in fair value of subsidiaries' assets and liabilities 132 1,034 0
Increase (decrease) in cash and cash equivalents resulting from changes in operating assets and liabilities:      
Cash deposits with clearing organizations (11) 0 0
Accounts receivable (5,928) (1,830) 0
Receivables from broker-dealers and clearing organizations (4,038) (4,048) 0
Forgivable loans receivable (597) (84) 0
Securities owned, at fair value 372 (179) 0
Inventory 32 (203) 0
Other receivables - related party 1,172 (1,634) (156)
Prepaid expenses and other current assets (3,481) (204) (739)
Other assets 0 (12) 0
Accounts payable and accrued expenses 9,727 5,395 5,889
Accounts payable and accrued expenses - related party 172 0 0
Securities sold, but not yet purchased, at fair value (147) 298 0
Interest payable 176 61 (1)
Interest payable - related party 602 66 0
Other long-term liabilities (284) 4,346 195
Net cash used in operating activities (85,430) (45,812) (20,378)
Cash Flows from Investing Activities:      
Purchase of marketable securities, at fair value 0 0 (79,947)
Sale of marketable securities 0 0 99,949
Purchase of research and development licenses (3,365) (3,785) (10,448)
Purchase of property and equipment (2,080) (6,370) (283)
Purchase of license 0 (350) (1,250)
Purchase of short-term investment (certificates of deposit) (56,091) 0 0
Redemption of short-term investment (certificates of deposit) 20,089 0 0
Security deposits paid (251) (6) 0
Security deposits refund 42 0 22
Acquisition of business - National (19) 4,626 0
Collection on notes receivable - disposal of Gilman branches 46 0 0
Investment in Origo Acquisition Corp. 0 (175) (158)
Net cash (used in) provided by investing activities (41,629) (6,060) 7,885
Cash Flows from Financing Activities:      
Proceeds from issuance of Series A preferred stock 25,000 0 0
Payment of costs related to the issuance of Series A preferred stock (2,804) 0 0
Proceeds from exercise of stock options 27 0 216
Proceeds from issuance of common stock under ESPP 191 189 59
Proceeds from subsidiaries’ offering 95,116 39,662 57,817
Payment of costs related to subsidiaries’ offering 0 (2,844) (6,321)
Proceeds from at-the-market offering 0 434 0
Payment of cost related to at-the-market offering 0 (79) 0
Payment of NSC note (3,608) (6,392) 0
Proceeds from NSC note 0 0 10,000
Payment of debt issuance costs associated with NSC Note 0 0 (855)
Proceeds from 2017 Subordinated Note Financing 28,355 0 0
Payment of debt issuance costs associated with 2017 Subordinated Note Financing (81) 0 0
Proceeds from subsidiaries' Convertible Note 9,914 4,609 0
Payment of debt issuance costs associated with subsidiaries’ Convertible Note (104) (594) 0
Proceeds from IDB Note 0 920 0
Proceeds from Opus Credit Facility 2,500 7,000 0
Payment of Preferred A dividends (299) 0  
Net cash provided by financing activities 154,207 42,905 60,916
Net increase (decrease) in cash, cash equivalents, and restricted cash 27,148 (8,967) 48,423
Cash, cash equivalents, and restricted cash at beginning of period 104,154 112,768  
Cash, cash equivalents and restricted cash at end of period 131,302 104,154 112,768
Acquisition of National Holdings Corp.      
Goodwill 0 (18,645) 0
Accounts receivable 0 (4,889) 0
Cash deposits with clearing organizations 0 (1,030) 0
Receivables from broker-dealers and clearing organizations 0 (1,607) 0
Securities owned, at fair value 0 (2,178) 0
Prepaid expenses and other current assets 0 (1,985) 0
Property and equipment, net 0 (1,132) 0
Restricted cash 0 (353) 0
Accounts payable and accrued expenses 0 6,079 0
Accrued commissions and payroll payable 0 14,029 0
Deferred clearing and marketing credits 0 1,007 0
Warrants issuable 0 13,406 0
Other current liabilities 0 707 0
Non-controlling interests 0 17,717 0
Net cash acquired in acquisition of National Holdings Corp. 0 4,626 0
Fortress [Member]      
Supplemental disclosure of non-cash financing and investing activities:      
Issuance of restricted stock 2 2 2
Issuance of warrants by subsidiary in conjunction with NSC debt 750 634 114
Issuance of subsidiaries’ common shares for settlement 2,062 0 0
Debt discount related to Opus Credit Facility 201 0 0
Beneficial conversion feature related to Opus Credit Facility 0 2,006 0
Unpaid debt offering cost 58 0 0
Common shares issuable for license acquired 1,682 0 0
Conversion of subsidiaries notes payable 314 0 0
Property, plant and equipment included in accounts payable and accrued liabilities 982 0 0
National [Member]      
Supplemental disclosure of cash flow information:      
Cash paid for interest 14 51 0
Cash paid for income taxes 2,399 104 0
Acquisition of National Holdings Corp.      
Fixed assets (acquired but not paid) 0 512 0
Dividend payable in warrants 0 14,055 0
Business acquired (192) 0 0
Customer Lists [Member]      
Acquisition of National Holdings Corp.      
Intangible assets 0 (13,500) 0
Trademarks [Member]      
Acquisition of National Holdings Corp.      
Intangible assets 0 (3,000) 0
non-related party [Member] | Fortress [Member]      
Supplemental disclosure of cash flow information:      
Cash paid for interest 675 349 80
related party [Member] | Fortress [Member]      
Supplemental disclosure of cash flow information:      
Cash paid for interest 1,839 0 0
Restricted Stock [Member] | Fortress [Member]      
Supplemental disclosure of non-cash financing and investing activities:      
Issuance of warrants in conjunction with NSC debt $ 0 $ 793 $ 175