Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.8
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash Flows from Operating Activities:    
Net loss $ (507,391) $ (692,027)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 512,916 613,834
Amortization of debt discount 13,785 12,992
Non -cash interest expense 56,877 41,589
Deferred compensation 6,982 4,390
Net (gain) loss attributable to joint venture (20,595) 17,542
Allowance for doubtful accounts 0 (11,801)
Stock - based compensation 104,441 169,986
Changes in Assets and Liabilities:    
Accounts receivable (18,164) (55,490)
Other assets (802) 1,948
Prepaid expenses and other current assets 30,621 118,592
Employee loan (18,370) (20,300)
Accounts payable and accrued expenses (38,019) 14,591
Deferred revenue (180,896) (65,866)
Deferred rent (4,752) (6,623)
Net Cash (Used in) Provided by Operating Activities (63,367) 178,103
Cash Flows from Investing Activities:    
Capital expenditures 0 (179,048)
Investment in joint venture 0 (21,300)
Net Cash Used in Investing Activities 0 (200,348)
Cash Flows from Financing Activities:    
Issuance of convertible debt 0 200,000
Repayments of capital lease obligations (57,792) (198,472)
Repayment of contingent consideration (6,204) (7,762)
Due to related party 32,108 34,836
Advances from officer 132,584 17,331
Net Cash Provided by Financing Activities 100,696 11,097
Increase (Decrease) in Cash and Cash Equivalents 37,329 (11,148)
Cash and Cash Equivalents, Beginning of Period 87,675 72,756
Cash and Cash Equivalents, End of Period 125,004 61,608
Cash paid for interest 40,865 10,597
Cash paid for income taxes 0 0
Non cash investing and financing activities:    
Accrual of preferred stock dividend 63,295 37,500
Warrants issued with convertible debt 0 35,702
Acquisition of equipment under capital lease 30,271 0
Cashless exercise of stock options $ 462 $ 0