Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash Flows from Operating Activities:    
Net loss $ (515,587) $ (507,391)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization $ 412,462 512,916
Amortization of debt discount 13,785
Non cash interest expense $ 158,673 56,877
Deferred compensation $ 6,982
Loan impairment $ 18,300
Net (gain) on equity method investment (26,972) $ (20,595)
Stock-based compensation 73,883 104,441
Changes in Assets and Liabilities:    
Accounts receivable (23,714) (18,164)
Other assets (450) (802)
Prepaid expenses and other current assets (147,307) 30,621
Employee loan (28,000) (18,370)
Accounts payable and accrued expenses 128,084 (38,019)
Deferred revenue (26,905) (180,896)
Deferred rent $ 490 (4,752)
Due to related party 32,108
Net Cash (Used in) Provided by Operating Activities $ 22,957 $ (31,259)
Cash Flows from Financing Activities:    
Issuance of convertible debt 80,000
Repayments of capital lease obligations (165,320) $ (57,792)
Repayments of revolving credit facility $ (10,000)
Repayment of contingent consideration $ (6,204)
Advances from officer 132,584
Net Cash (Used in) Provided by Financing Activities $ (95,320) 68,588
Increase (Decrease) in Cash and Cash Equivalents (72,363) 37,329
Cash and Cash Equivalents, Beginning of Period 110,448 87,675
Cash and Cash Equivalents, End of Period 38,085 125,004
Supplemental Disclosure of Cash Flow Information    
Cash paid for interest $ 44,334 $ 40,865
Cash paid for income taxes
Non cash investing and financing activities:    
Accrual of preferred stock dividend $ 71,106 $ 63,295
Cashless exercise of stock options $ 462
Conversion of due to related party to convertible debt $ 245,601
Conversion of due to officer to convertible debt 1,065,762
Acquisition of equipment under capital lease $ 14,443 $ 30,271