Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended 12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Dec. 31, 2012
OPERATING ACTIVITIES      
Net loss $ (12,298,036) $ (2,683,785)  
Adjustments to reconcile net loss to net cash used in operating activities:      
Bad debt expense (10,778) 79,179  
Common stock issued for services 18,375 270,000  
Common stock issued for late payment    160,468  
Stock-based compensation 1,277,794 210,429  
Depreciation and amortization expense 92,129 301,383 549,151
(Gain) loss on adjustment in contingent consideration 193,465 (76,782)  
Change in fair value of derivative liabilities 3,813,598 (193,990) 359,530
Amortization of note discounts 6,134,367 1,020,749  
Loss on sale of assets    164  
Increase (decrease) in cash resulting from changes in:      
Accounts receivable 147,184 (110,239)  
Other current assets (33,733) (540,553)  
Other assets    (2,060)  
Accounts payable (84,388) (189,617)  
Accrued interest 159,132 83,598  
Accrued and deferred personnel compensation 25,747 (22,826)  
Deferred revenue - related party (35,262)     
Deferred revenue and customer deposits 1,926 (86,611)  
Other liabilities 119,061 454,123  
Net cash provided by used in operating activities (479,419) (1,225,514)  
INVESTING ACTIVITIES      
Purchases of equipment (2,799) (9,732)  
Acquisitions (400,000)     
Net cash used in investing activities (402,799) (9,732)  
FINANCING ACTIVITIES      
Proceeds from issuance of notes payable, net of finance offering costs 700,000 3,148,470  
Payments on notes payable (1,609,682) (772,547)  
Payments on cash payment obligation    (87,500)  
Proceeds from issuance of common stock, net of issuance costs 6,789,685     
Net cash provided by financing activities 5,880,003 2,288,423  
Net change in cash 4,997,785 1,053,177  
Cash at beginning of period 363 396 396
Cash at end of period 4,998,148 1,053,573 363
Cash paid during period for :      
Interest 53,389 33,108  
Non cash investing and financing activities:      
Debt discount from derivatives 4,614,714 2,733,412  
Adjustment to derivative liability due to note repayment 40,511 181,646  
Adjustment to derivative liability due to note conversion 10,945,413 1,020,859  
Adjustment to derivative liability due to Allonge / ASID conversion 349,694     
Adjustment to derivative liability due to non-employee warrant conversion 176,555     
Issuance of common stock for Boomtext earn-out 2,210,667     
Issuance of common stock for acquisitions 2,210,667     
Issuance of note payable for acquisition 1,365,096     
Earn-out payable recorded for acquisition 224,000     
Conversion of accrued interest into notes payable    137,649  
Conversion of notes payable into common stock 4,984,720     
Conversion of accrued interest into common stock 369,786     
Settlement of working capital asset related to the Boomtext acquisition $ 153,317