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 $)
 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash Flows from Operating Activities:    
Net loss $ (1,340,449) $ (935,814)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 356,443 361,167
Noncash interest expense 20,685   
Stock based compensation 169,016 31,960
Amortization of debt discount    153,341
Deferred compensation 19,408 23,860
Allowance for doubtful accounts 10,000 7,500
Changes in Assets and Liabilities:    
Accounts receivable (9,848) 19,953
Prepaid expenses (12,836) (140,674)
Other assets 817 603
Accounts payable & accrued expenses 249,665 (13,219)
Deferred revenue (17,490) 230,334
Deferred rent (2,907) (1,817)
Due to related party    9,000
Net Cash Used in Operating Activities (557,496) (253,806)
Cash Flows from Investing Activities:    
Capital expenditures (68,769) (26,740)
Net Cash Used in Investing Activities (68,769) (26,740)
Cash Flows from Financing Activities:    
Proceeds from the issuance of common stock    1,500,000
Proceeds from issuance of convertible debt 500,000   
Advances from officer 115,274   
Repayments of capital lease obligations (81,228) (282,731)
Repayments of loan obligations (33,555) (482,105)
Net Cash Provided by Financing Activities 500,491 735,164
Increase in Cash and Cash Equivalents (125,774) 454,888
Cash and Cash Equivalents, Beginning of Period 168,490 50,395
Cash and Cash Equivalents, End of Period 42,716 505,283
Supplemental Disclosure of Cash Flow Information:    
Cash paid for interest 2,007 2,526
Cash paid for income taxes      
Noncash Investing and Financing Activities:    
Accrual of Preferred Stock Dividend $ 25,000 $ 25,000