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 $)
 9 Months Ended 12 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
OPERATING ACTIVITIES      
Net loss $ (14,702,351) $ (5,040,183)  
Adjustments to reconcile net loss to net cash used in operating activities:      
Bad debt expense 10,843 104,484  
Common stock issued for services 86,006 270,000  
Common stock issued for late payment    160,468  
Stock-based compensation 2,349,832 314,990  
Depreciation and amortization expense 181,262 431,962 549,151
Loss on adjustment in contingent consideration 193,465 81,161  
Change in fair value of derivative liabilities 3,865,511 (407,079) (359,530)
Amortization of deferred financing costs    239,943  
Amortization of note discounts 6,134,367 2,551,161  
Loss on sale of assets    164  
Increase (decrease) in cash resulting from changes in:      
Accounts receivable (71,125) (208,898)  
Other current assets (88,091) (200,915)  
Other assets 27,999 1,540  
Accounts payable 624 (432,694)  
Accrued interest 64,535 195,225  
Accrued and deferred personnel compensation (90,795) (25,312)  
Deferred revenue - related party (35,262) (157,538)  
Deferred revenue and customer deposits (8,309) 12,984  
Other liabilities (3,325) 42,594  
Net cash used in operating activities (2,084,814) (2,065,943)  
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) (819,300)  
Payments on cash payment obligation    (87,500)  
Proceeds from issuance of common stock, net of issuance costs 6,897,177     
Net cash provided by financing activities 5,987,495 2,241,670  
Net change in cash 3,499,882 165,995  
Cash at beginning of period 363 396 396
Cash at end of period 3,500,245 166,391 363
Cash paid during period for :      
Interest 146,973 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 69,332  
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 for common stock for cashless exercise of warrants 23,904     
Issuance of common stock for Boomtext earn-out 2,210,667     
Issuance of common stock for acquisitions 1,296,060     
Issuance of common stock for accrued bonuses 37,000     
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