CIG WIRELESS CORP.

CIK:0001432754|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Operating revenue:
Rent revenue	$ 6,526,900	$ 3,174,636
Management fees to related parties	77,077	222,200
Service revenue	313,780us-gaap_OtherSalesRevenueNet	112,208us-gaap_OtherSalesRevenueNet
Total operating revenue	6,917,757us-gaap_Revenues	3,509,044us-gaap_Revenues
Cost of operations:
Site rental	1,884,755	1,219,288
Other site-related costs	1,058,663cigw_OtherCosts	910,924cigw_OtherCosts
General and administrative expenses	8,577,415us-gaap_GeneralAndAdministrativeExpense	6,376,395us-gaap_GeneralAndAdministrativeExpense
Shared services from related parties	0cigw_SharedServicesWithRelatedParties	266,118cigw_SharedServicesWithRelatedParties
Depreciation, amortization and accretion expense	4,531,118	2,495,066
Impairment loss	703,744us-gaap_AssetImpairmentCharges	457,409us-gaap_AssetImpairmentCharges
Total operating expenses	16,755,695us-gaap_OperatingExpenses	11,725,200us-gaap_OperatingExpenses
Loss from operations	(9,837,938)us-gaap_OperatingIncomeLoss	(8,216,156)us-gaap_OperatingIncomeLoss
Other (expenses) income
Interest expense	(3,099,531)us-gaap_InterestExpense	(1,609,896)us-gaap_InterestExpense
Interest expense from related parties	(68,251)cigw_InterestExpensesToRelatedParties	(20,575)cigw_InterestExpensesToRelatedParties
Gain on extinguishment of accounts payable	0	78,000
Losses allocated to related party investors	34,670	37,118
Indemnification fees	(2,215,110)cigw_IndemnityAndOtherFees	0cigw_IndemnityAndOtherFees
Losses on modification of non-controlling interest	0	(2,687,743)
Gain on change in fair value of derivatives	7,765,004	200,659
Total other (expenses) income	2,416,782us-gaap_OtherNonoperatingIncomeExpense	(4,002,437)us-gaap_OtherNonoperatingIncomeExpense
Net loss	(7,421,156)us-gaap_ProfitLoss	(12,218,593)us-gaap_ProfitLoss
Losses attributable to non-controlling interest	2,811,650	3,237,788
Net loss attributable to CIG Wireless Corp.	(4,609,506)us-gaap_NetIncomeLoss	(8,980,805)us-gaap_NetIncomeLoss
Accretion of preferred stock to redemption values	(23,627,648)	(1,818,779)
Preferred stock dividends	(19,939,999)us-gaap_DividendsPreferredStock	(1,648,786)us-gaap_DividendsPreferredStock
Net loss attributable to common stockholders	$ (48,177,153)	$ (12,448,370)
Net loss per share:
Net loss per share attributable to common stockholders, basic and diluted	$ (1.56)	$ (0.49)
Weighted average common shares outstanding, basic and diluted	30,809,316	25,298,861

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (7,421,156)us-gaap_ProfitLoss	$ (12,218,593)us-gaap_ProfitLoss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, amortization and accretion expense	4,531,118	2,495,066
Impairment loss	703,744us-gaap_AssetImpairmentCharges	457,409us-gaap_AssetImpairmentCharges
Amortization of deferred financing costs and debt discounts	289,621	220,305
Write-off of related party receivables and payable	0	165,723
Write-off of issuance costs on long-term subordinated obligations to related parties	0	28,944
Indemnity fees	1,910,110cigw_IndemnityFees	0cigw_IndemnityFees
Management fees revenue from related parties	(8,350)us-gaap_ManagementFeesRevenue	(8,350)us-gaap_ManagementFeesRevenue
Losses allocated to related party investors	(34,670)	(37,118)
Loss on modification of Class A interest	0	2,687,743
Gain from extinguishment of liabilities	0cigw_GainLossOnSaleOfAccountsPayable	(78,000)cigw_GainLossOnSaleOfAccountsPayable
Gain from decrease in fair value of derivatives	(7,765,004)	(200,659)
Stock-based compensation	2,487,145us-gaap_ShareBasedCompensation	467,235us-gaap_ShareBasedCompensation
Reversal of stock compensation due to forfeitures of unvested stock options	0	(777,373)
Changes in operating assets and liabilities:
Accounts receivable	(132,898)	(7,550)
Accounts receivable from related parties	(48,189)	(213,851)
Prepaid expenses and other assets	(76,382)	(162,322)
Other noncurrent assets	(1,782,345)	(382,398)
Accounts payable and accrued liabilities	293,732	648,043
Accounts payable to related parties	0	266,118
Deferred revenue	615,740	683,273
Other noncurrent liabilities	312,138	222,539
Net cash used in operating activities	(6,125,646)	(5,743,816)
Cash flows used in investing activities:
Cash paid for purchase and construction of fixed assets	(5,003,748)	(3,165,050)
Cash paid for acquisitions, net of cash acquired	(13,300,798)	(45,028,995)
Increase in restricted cash	(192,899)	(533,854)
Net cash used in investing activities	(18,497,445)	(48,727,899)
Cash flows provided by financing activities:
Proceeds from credit facility, net of discounts	15,707,184us-gaap_ProceedsFromLinesOfCredit	15,121,352us-gaap_ProceedsFromLinesOfCredit
Proceeds from notes payable to related party	7,000,000us-gaap_ProceedsFromNotesPayable	0us-gaap_ProceedsFromNotesPayable
Common stock sold for cash, net of issuance costs	0	1,352,910
Preferred stock sold for cash, net of issuance costs	0	2,686,946
Redeemable preferred stock, net of issuance costs	2,721,167	36,779,166
Dividends on preferred stock	(152,460)cigw_CashDividendsPreferredStock	(90,893)cigw_CashDividendsPreferredStock
Payments for debt issuance costs	(14,680)us-gaap_PaymentsOfDebtIssuanceCosts	(52,513)us-gaap_PaymentsOfDebtIssuanceCosts
Payments for debt issuance costs accrued in prior year	0	(231,737)
Payments for equity issuance costs for conversion of debt	0us-gaap_PaymentsOfStockIssuanceCosts	(73,478)us-gaap_PaymentsOfStockIssuanceCosts
Distributions to related party investors	(450,000)us-gaap_RepaymentsOfRelatedPartyDebt	(7,472)us-gaap_RepaymentsOfRelatedPartyDebt
Payments on notes payable	0cigw_PaymentsOnNotesPayable	(35,000)cigw_PaymentsOnNotesPayable
Payments on notes payable to related parties	(150,249)	(800,000)
Net advances from related parties	125,002	(5,051)
Net cash provided by financing activities	24,785,964	54,644,230
Net increase in cash	162,873	172,515
Cash and cash equivalents, at beginning of period	2,529,284	2,356,769
Cash and cash equivalents, at end of period	2,692,157	2,529,284
Supplemental disclosure of cash flow information:
Interest paid	2,763,059us-gaap_InterestPaid	1,316,309us-gaap_InterestPaid
Taxes paid	0us-gaap_IncomeTaxesPaid	0us-gaap_IncomeTaxesPaid
Acquisitions of businesses:
Fair value of assets acquired, net of cash acquired	13,510,190	48,720,995
Less: liabilities assumed	(209,392)	(641,750)
Fair value of assets, net of assumed liabilities and cash acquired	13,300,798	48,079,245
Common stock issued as consideration	0	(3,050,250)
Net cash paid of acquisition of businesses	13,300,798	45,028,995
Noncash investing and financing Activities:
Asset retirement obligations	56,273	28,287
Related party receivable used to pay related party convertible note	0	100,000
Common stock issued for conversion of related party convertible note payable	0	700,000
Common stock issued for accrued interest on related party convertible note payable	0	27,133
Common stock issued for conversion of liabilities	0	42,000
Common stock issued for conversion of noncontrolling interests	7,308,940	0
Accrual for Series B preferred stock dividends declared	302,488cigw_AccruedPreferredDividends	0cigw_AccruedPreferredDividends
Equity issuance costs paid with common stock	0cigw_EquityIssuanceCost	3,000cigw_EquityIssuanceCost
Accretion of preferred stock to redemption values	23,627,648	1,818,779
Dividends on Series A-1 and A-2 preferred stock	19,637,511cigw_PreferredStockDividend	1,405,433cigw_PreferredStockDividend
Derivative liability	3,573,390cigw_DerivativeLiabilityAssumed	5,498,383cigw_DerivativeLiabilityAssumed
Common stock issued for acquisition of business	0	3,050,250
Gain on settlement of long-term subordinated obligation to related party	$ 161,597	$ 0

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current Assets
Cash and cash equivalents	$ 2,692,157	$ 2,529,284
Accounts receivable	243,654us-gaap_AccountsReceivableNetCurrent	110,756us-gaap_AccountsReceivableNetCurrent
Accounts receivable from related parties	77,450	197,407
Prepaid expenses	541,512us-gaap_PrepaidExpenseCurrent	420,707us-gaap_PrepaidExpenseCurrent
Total current assets	3,554,773us-gaap_AssetsCurrent	3,258,154us-gaap_AssetsCurrent
Restricted cash	982,486	789,587
Property, equipment and software, net	66,934,094us-gaap_PropertyPlantAndEquipmentNet	57,288,544us-gaap_PropertyPlantAndEquipmentNet
Intangible assets	17,794,120	14,044,184
Goodwill	554,125us-gaap_Goodwill	554,125us-gaap_Goodwill
Long -term prepaid rent	2,178,196us-gaap_PrepaidExpenseNoncurrent	569,872us-gaap_PrepaidExpenseNoncurrent
Security deposits	27,037us-gaap_SecurityDeposit	0us-gaap_SecurityDeposit
Deferred rent assets	516,290	369,306
Deferred financing costs, net	299,609us-gaap_DeferredFinanceCostsNet	361,528us-gaap_DeferredFinanceCostsNet
Total assets	92,840,730us-gaap_Assets	77,235,300us-gaap_Assets
Current Liabilities
Accounts payable and accrued liabilities	2,445,389	1,848,359
Accounts payable due to related parties	0	43,144
Deferred revenue	979,998us-gaap_DeferredRevenueCurrent	685,423us-gaap_DeferredRevenueCurrent
Derivative liability	1,106,110us-gaap_DerivativeLiabilitiesCurrent	5,297,724us-gaap_DerivativeLiabilitiesCurrent
Current portion of notes payable to related parties	0	150,249
Total current liabilities	4,531,497us-gaap_LiabilitiesCurrent	8,024,899us-gaap_LiabilitiesCurrent
Long-term deferred revenue	890,932us-gaap_DeferredRevenueNoncurrent	513,900us-gaap_DeferredRevenueNoncurrent
Deferred rent liabilities	965,583us-gaap_DeferredRentCreditNoncurrent	655,050us-gaap_DeferredRentCreditNoncurrent
Asset retirement obligations	1,712,576	1,397,424
Long-term subordinated obligations to related parties	0us-gaap_SubordinatedLongTermDebt	654,616us-gaap_SubordinatedLongTermDebt
Long-term debt to related parties	7,000,000us-gaap_OtherLongTermDebtNoncurrent	0us-gaap_OtherLongTermDebtNoncurrent
Long-term debt, net of unamortized discounts	40,435,830us-gaap_LongTermDebtNoncurrent	24,515,624us-gaap_LongTermDebtNoncurrent
Total liabilities	55,536,418us-gaap_Liabilities	35,761,513us-gaap_Liabilities
Stockholders' (Deficit) Equity
Preferred stock, 100,000,000 shares authorized Series B 6% 2012 convertible redeemable preferred stock, 1,700,000 shares authorized, $0.00001 par value; 1,680,492 shares issued and outstanding	17us-gaap_PreferredStockValue	17us-gaap_PreferredStockValue
Common stock, 100,000,000 shares authorized, $0.00001 par value; 69,369,314 and 21,986,123 issued and outstanding, respectively	694us-gaap_CommonStockValue	220us-gaap_CommonStockValue
Additional paid-in capital	23,229,265us-gaap_AdditionalPaidInCapital	13,272,057us-gaap_AdditionalPaidInCapital
Accumulated deficit	(68,141,835)	(19,812,222)
Total CIG Wireless Corp. stockholders' deficit	(44,911,859)us-gaap_StockholdersEquity	(6,539,928)us-gaap_StockholdersEquity
Non-controlling interest	337,880us-gaap_MinorityInterest	10,458,470us-gaap_MinorityInterest
Total stockholders' (deficit) equity	(44,573,979)	3,918,542
Total liabilities and stockholders' (deficit) equity	92,840,730	77,235,300
Redeemable Common Stock [Member]
Current Liabilities
Series Redeemable stock	3,050,250	3,050,250
Series A-1 Redeemable Preferred Stock [Member]
Current Liabilities
Series Redeemable stock	59,453,695	26,203,701
Series A-2 Redeemable Convertible Preferred Stock [Member]
Current Liabilities
Series Redeemable stock	$ 19,374,346	$ 8,301,294