Net Element (NETE) Zach's Small-Cap Research Report

Zacks Investment Research Page 8 scr.zacks.com CASH FLOWS Cash flows from operating activities Net loss Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Non controlling interest Share based compensation Deferred revenues Net non cash items in other income Impairment for goodwill Depreciation and amortization Non cash interest YR 2018 Mar. 31, 2019 June 30, 2019 3 month 3 month $ (4,936,182) $ (1,120,847) $ (1,537,445) (86,551) (13,966) (40,225) 142,017 15,006 2,005,841 (216,742) (523,199) (523,199) (1,202,201) - - 636,000 - - 2,454,637 851,220 747,347 73,442 14,314 7,397 Sept 30, 2019 3 month $ (1,010,629) (28,783) 15,008 494,832 - - 755,985 14,972 Dec. 31, 2019 YR 2019 Mar. 31, 2020 June 30, 2020 3 month 3 month 3 month $ (2,789,461) $ (6,458,382) $ (1,366,216) $ (325,272) (23,287) (106,261) (11,228) (13,725) 15,007 2,050,862 38,400 7,499 456,834 (94,732) (470,205) 360,791 - - - - 1,326,566 1,326,566 - - 765,691 3,120,243 779,443 772,401 20,192 56,875 12,294 34,258 Sept 30, 2020 3 month $ (2,329,569) (12,916) 1,089,114 (437,267) - - 749,474 36,818 (Recovery of ) provision for loan losses 16,238 10,013 (18,940) 8,927 (9,226) (9,226) 485 (9,153) 11,515 Changes in assets and liabilities, net of acquisitions and the effect of consolidation of equity affiliates Account receivable (1,503,755) 1,151,285 13,976 (423,880) (1,005,139) (263,758) 2,520,395 (1,819,889) 655,057 Prepaid expenses and other assets 384,403 253,634 415,012 (442,293) (358,571) (132,218) 364,019 (651,405) (94,897) Accounts payable and accrued expenses Net cash (used in) provided by operating activities Cash flows from investing activities Purchase of portfolio and client acquisition costs 971,202 (875,266) (1,429,936) (3,267,492) (237,806) (360,172) (5,413,264) (651,365) (558,913) (182,855) (798,716) (412,204) 3,058,618 (1,642,618) (1,419,019) 880,841 (755,955) (2,152,649) 448,368 (763,654) (691,180) (2,313,662) (427,031) 67,681 380,680 48,009 (79,721) Purchase of fixed and other assets Net cash used in investing activities Cash flows from financing activities (114,931) (413,132) (55,155) (5,528,195) (1,064,497) (614,068) 4,659 (407,545) 325,628 (138,000) 6,049 (41,715) (365,552) (2,451,662) (420,982) 25,966 (543,379) (623,100) Proceeds from SBA loans Proceeds from indebtedness Repayment of indebtedness - - - 2,131,500 - 1,116,500 (2,785,134) (102,700) (106,384) - 920,184 (110,204) - - - 651,392 997,816 3,034,500 155,206 19,108 156,841 (162,447) (145,040) 145,040 - 1,510,656 - Lease liability Related party advances (payments) Net cash provided by (used in) financing activities Effect of exchange rate changes on cash Net increase in cash Cash at beginning of period Cash at end of period Cash paid during the period for: Interest Taxes Operating cash flow Free cash flow - 471,307 (29,213) - (171,615) 338,176 (653,634) 196,992 1,319,079 (34,399) (12,497) 18,768 (9,483,720) (1,117,808) 363,607 11,733,271 2,249,551 1,131,743 2,249,551 1,131,743 1,495,350 773,737 230,789 245,135 61,871 46,932 56,909 (3,119,342) (767,459) 640,776 (8,647,537) (1,831,956) 26,708 (30,098) 85,942 865,824 (6,555) (346,992) 1,495,350 1,148,358 255,069 16,703 250,312 (157,233) - 380,986 (31,950) (32,918) (50,032) 202,471 133,743 25,689 1,073,615 3,455,510 111,959 808,311 15,789 15,505 5,969 8,620 (32,103) (1,133,296) 145,314 79,243 1,148,358 2,249,551 1,116,255 1,261,569 1,116,255 1,116,255 1,261,569 1,340,812 - 730,993 336,120 - - 120,544 - - (237,684) (114,055) (1,017,027) 826,799 (603,236) (2,565,717) (1,438,009) 852,765 518,104 70,277 2,099,037 10,463 1,534,409 1,340,812 2,875,221 630,446 92,259 (892,831) (1,515,931)