Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Statements Of Cash Flows [Abstract]    
Net loss $ (2,308,045) $ (2,803,647)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 728,001 694,393
Amortization of debt discount    753,934
Non cash interest expense 45,890 167,925
Loss on extinguishment of debt    142,925
Loss on settlement of liabilities    8,975
Deferred compensation 19,480 19,333
Deferred financing fees    4,368
Allowance for doubtful accounts (21,199) 31,000
Stock based compensation 300,266 78,836
Gain on settlement of contingent consideration    (176,496)
Changes in Assets and Liabilities:    
Accounts receivable 114,021 62,391
Other assets 12,144 (5,138)
Prepaid expenses and other current assets 33,923 (155,460)
Employee Loan (10,000) 23,000
Accounts payable and accrued expenses 245,450 459,234
Deferred revenue 2,219 179,657
Deferred rent (6,938) (4,723)
Due to related party 38,051   
Net Cash Used in Operating Activities (806,737) (519,493)
Cash Flows from Investing Activities:    
Capital expenditures (106,053) (96,575)
Net Cash Used in Investing Activities (106,053) (96,575)
Cash Flows from Financing Activities:    
Proceeds from the issuance of common stock 500,000 1,755,000
Issuance of convertible debt 500,000   
Repayments of capital lease obligations (220,584) (328,470)
Repayments of loan obligations (92,757) (133,673)
Advances from credit line    322
Payment of preferred dividend    (12,500)
Repayment of contingent consideration (3,105) (546,516)
Advances from shareholder 133,502   
Net Cash Provided by Financing Activities 817,056 734,163
Increase (Decrease) in Cash and Cash Equivalents (95,734) 118,095
Cash and Cash Equivalents, Beginning of Year 168,490 50,395
Cash and Cash Equivalents, End of Year 72,756 168,490
Cash paid for interest 50,012 76,571
Cash paid for income taxes      
Non cash investing and financing activities:    
Stock issued in connection with Message Logic 108,894   
Accrual of preferred stock dividend 50,000 50,000
Warrants issued with convertible debt      
Stock issued in connection with acquisition of SafeData, LLC    150,000
Fixed assets acquired under capital leases 309,297 895,957
Stock issued for settlement of payables    255,000
Stock issued for financing fees 42,500 42,500
Stock issued for deferred compensation 443,664 21,250
Stock issued in settlement of convertible debt    1,000,000
Stock issued for accrued interest    $ 129,166