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
OPERATING ACTIVITIES    
Net loss $ (7,338,927) $ (16,312,989)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense 115,059 21,514
Common stock issued for services 270,000 25,000
Stock-based compensation 391,410 1,380,256
Stock issued for late payment 160,468   
Depreciation and amortization expense 549,151 751,072
Gain on adjustment in contingent consideration (625,357) (999,347)
Change in fair market value of derivative liabilities (359,530) 1,234,145
Amortization of deferred financing costs 263,255 39,958
Amortization of note discounts 3,935,108 370,810
Goodwill impairment 742,446 10,435,170
Intangible asset impairment 145,396 1,325,134
Loss on sale of assets 164   
Increase (decrease) in cash resulting from changes in:    
Accounts receivable (285,884) (216,145)
Other current assets (29,460) 25,331
Other assets 9,929 (1,800)
Accounts payable (327,828) 576,305
Accrued interest 335,035 112,796
Accrued and deferred personnel compensation 61,843 118,050
Deferred revenue - related party (164,738)   
Deferred revenue and customer deposits 55,206 72,887
Other liabilities (120,929) 151,168
Net cash used in operating activities (2,218,183) (890,685)
INVESTING ACTIVITIES    
Purchases of equipment (11,112) (12,189)
Acquisition of intangible assets    (77,000)
Cash paid for acquisitions    (209,833)
Net cash used in investing activities (11,112) (299,022)
FINANCING ACTIVITIES    
Proceeds from issuance of notes payable, net of finance offering costs 3,148,470 272,500
Payments on notes payable (831,708) (304,539)
Payments on cash payment obligation (87,500) (162,500)
Proceeds from issuance of common stock and warrants net of equity offering costs    1,011,203
Net cash provided by financing activities 2,229,262 816,664
Net change in cash (33) (373,043)
Cash at beginning of period 396 373,439
Cash at end of period 363 396
Cash paid during period for :    
Interest 33,385 20,650
Income taxes    3,220
Non cash investing and financing activities:    
Common stock issued for patents and trademarks    50,000
Debt discount 5,352,404 149,196
Adjustment to derivative liability due to debt repayment 69,332   
Adjustment to derivative liability due to debt conversion 3,421,579 143,961
Adjustment to derivative liability due to warrant cancellation 1,318   
Conversion of notes payable and interest into common stock    230,271
Conversion of accrued interest into convertible notes payable 137,649   
Share value issued in acquisitions    $ 11,318,069