Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.6
Consolidated Statements of Cash Flows (Unaudited) (USD $)
 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash Flows from Operating Activities:    
Net loss $ (1,708,794) $ (1,535,095)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 521,533 516,459
Noncash interest expense 33,288 67,923
Stock based compensation 196,986 52,420
Amortization of debt discount    230,014
Deferred compensation 29,111 35,790
Allowance for doubtful accounts 10,000 18,000
Gain on settlement of Contingent Consideration    (176,495)
Changes in Assets and Liabilities:    
Accounts receivable (75,595) 34,671
Prepaid expenses 5,212 (106,761)
Other assets (187) (31,524)
Accounts payable & accrued expenses 168,679 268,653
Deferred revenue 10,405 212,061
Deferred rent (4,922) (3,270)
Due to related party    13,500
Net Cash Used in Operating Activities (814,284) (403,654)
Cash Flows from Investing Activities:    
Capital expenditures (99,827) (54,983)
Net Cash Used in Investing Activities (99,827) (54,983)
Cash Flows from Financing Activities:    
Proceeds from the issuance of common stock 500,000 1,500,000
Proceeds from issuance of convertible debt 500,000   
Advances from (payments on) credit line    322
Advances from officer 128,379   
Repayments of capital lease obligations (152,729) (290,952)
Repayments of loan obligations (46,047) (673,674)
Net Cash Provided by Financing Activities 929,603 535,696
Increase in Cash and Cash Equivalents 15,492 77,059
Cash and Cash Equivalents, Beginning of Period 168,490 50,395
Cash and Cash Equivalents, End of Period 183,982 127,454
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 2,968 7,820
Cash paid for income taxes      
Noncash Investing and Financing Activities:    
Stock issued for deferred financing fees 42,500   
Accrual of preferred stock dividend 37,500 37,500
Fixed assets acquired under capital leases $ 309,297 $ 496,578
Issuance of capital stock in connection with acquisition of Safedata, LLC    150,000