Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.3.0.15
Consolidated Statements of Cash Flows (USD $)
 9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Net Loss $ (1,535,095) $ (739,397)
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization 516,459 246,706
Amortization of debt discount 230,014 89,450
Non cash interest expense 67,923 0
Deferred compensation 35,790 98,839
Allowance for doubtful accounts 18,000 (9,742)
Stock based compensation 52,420 10,446
Gain on settlement of contingent consideration (176,495) 0
Changes in Assets and Liabilities:    
Accounts receivable 34,671 (45,181)
Other Assets (31,524) 5,880
Prepaid Expenses and other current assets (106,761) (1,317)
Accounts payable and accrued expenses 268,653 318,681
Deferred revenue 212,061 (114,655)
Deferred rent (3,270) (1,668)
Due to Related Party 13,500 13,500
Net Cash Used in Operating Activities (403,654) (128,458)
Cash Flows from Investing Activities:    
Cash paid for equipment (54,983) (37,237)
Acquisition of SafeData, LLC net assets 0 (1,229,954)
Net Cash Used in Investing Activities (54,983) (1,267,191)
Cash Flows from Financing Activities:    
Proceeds from the issuance of common stock 1,500,000 300,000
Issuance of convertible debt 0 1,000,000
Repayments of capital lease obligations (290,952) (131,243)
Repayments of loan obligations (673,674) 0
Advances from (payments on) credit line 322 (7,500)
Advances from shareholder 0 235,603
Net Cash Provided by Financing Activities 535,696 1,396,860
Increase in Cash and Cash Equivalents 77,059 1,210
Cash and Cash Equivalents, Beginning of Period 50,395 28,160
Cash and Cash Equivalents, End of Period 127,454 29,370
Cash paid for interest 7,820 15,630
Cash paid for income taxes 0 0
Non cash investing and financing activity    
Issuance of capital stock in connection with acquisition of SafeData, LLC 150,000 850,000
Fixed assets acquired under capital leases $ 496,578 $ 0