Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.6
Consolidated Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
OPERATING ACTIVITIES    
Net loss $ (2,423,215) $ (1,692,240)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense (12,772) 46,384
Common stock issued for services    270,000
Stock-based compensation 93,502 113,861
Depreciation and amortization expense 33,813 154,617
Gain on adjustment in contingent consideration (305,712) (60,650)
Change in fair value of derivative liabilities 1,001,550 460,487
Amortization of deferred financing costs    35,154
Amortization of note discounts 1,334,729 277,349
Increase (decrease) in cash resulting from changes in:    
Accounts receivable 216,165 (29,797)
Other current assets (59,225) (324,119)
Other assets    2,939
Accounts payable 93,165 225,636
Accrued interest 108,031 41,740
Accrued and deferred personnel compensation (24,605) 106,077
Deferred revenue - related party    (33,000)
Deferred revenue and customer deposits 5,323 9,912
Other liabilities (260) 67,303
Net cash provided by (used in) operating activities 60,489 (328,347)
INVESTING ACTIVITIES    
Purchases of equipment    (5,515)
Acquisition deposit (195,630)   
Net cash used in investing activities (195,630) (5,515)
FINANCING ACTIVITIES    
Proceeds from issuance of notes payable, net of finance offering costs 200,000 585,100
Payments on notes payable (21,040) (188,894)
Payments on cash payment obligation    (62,500)
Net cash provided by financing activities 178,960 333,706
Net change in cash 43,819 (156)
Cash at beginning of period 363 396
Cash at end of period 44,182 240
Cash paid during period for :    
Interest 3,960 4,835
Non cash investing and financing activities:    
Note discount 133,725 320,557
Adjustment to derivative liability due to note repayment 15,406 49,728
Common stock payable recorded for earn out payment related to the Boomtext acquisition 1,711,490   
Settlement of working capital asset related to the Boomtext acquisition $ 153,317