Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

 v2.3.0.11
Consolidated Statements of Cash Flows (USD $)
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Net Loss $ (935,814) $ (464,841)
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization 361,167 73,376
Amortization of debt discount 153,341 0
Deferred compensation 23,860 65,893
Allowance for doubtful accounts 7,500 (9,742)
Stock based compensation 31,960 6,964
Changes in Assets and Liabilities:    
Accounts receivable 19,953 8,209
Other Assets 603 8,945
Prepaid Expenses and other current assets (140,674) (16,196)
Accounts payable and accrued expenses (13,219) 318,092
Deferred revenue 230,334 (140,739)
Deferred rent (1,817) (1,225)
Due to Related Party 9,000 9,000
Net Cash Used in Operating Activities (253,806) (142,264)
Cash Flows from Investing Activities:    
Cash paid for equipment (26,470) (33,799)
Acquisition of SafeData, LLC net assets 0 (1,229,954)
Net Cash Used in Investing Activities (26,470) (1,263,753)
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 (282,731) 0
Repayments of loan obligations (482,105) 0
Advances from Credit Line 0  
Advances from shareholder 0 230,729
Net Cash Provided by Financing Activities 735,164 1,530,729
Increase in Cash and Cash Equivalents 454,888 124,712
Cash and Cash Equivalents, Beginning of Period 50,395 28,160
Cash and Cash Equivalents, End of Period 505,283 152,872
Cash paid for interest 2,526 2,766
Cash paid for income taxes 0 0
Non cash investing and financing activity    
Issuance of capital stock in connection with acquisition of SafeData, LLC $ 0 $ 850,000