Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
OPERATING ACTIVITIES    
Net loss $ (16,759,031) $ (7,338,927)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Bad debt expense 32,858 115,059
Common stock and warrants issued for services 106,138 270,000
Common stock issued for late payment    160,468
Stock-based compensation 1,890,216 391,410
Depreciation and amortization expense 270,579 549,151
Gain (Loss) on adjustment in contingent consideration 28,465 (625,357)
Change in fair value of derivative liabilities 3,766,231 (359,530)
Amortization of deferred financing costs    263,255
Amortization of note discounts 6,134,367 3,935,108
Goodwill impairment 1,066,068 742,446
Intangible asset impairment 644,170 145,396
Loss on sale of assets    164
Increase (decrease) in cash resulting from changes in:    
Accounts receivable 128,613 (285,884)
Other current assets (104,605) (29,460)
Other assets 27,300 9,929
Accounts payable (17,521) (327,828)
Accrued interest 65,361 335,035
Accrued and deferred personnel compensation (71,493) 61,843
Deferred revenue - related party (35,262) (164,738)
Deferred revenue and customer deposits (45,208) 55,206
Other liabilities (76,134) (120,929)
Net cash used in operating activities (2,948,888) (2,218,183)
INVESTING ACTIVITIES    
Purchases of equipment (51,285) (11,112)
Acquisition of intangible assets (15,000)   
Acquisitions (400,000)   
Net cash used in investing activities (466,285) (11,112)
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) (831,708)
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 2,229,262
Net change in cash 2,572,322 (33)
Cash at beginning of period 363 396
Cash at end of period 2,572,685 363
Cash paid during period for :    
Interest 146,973 33,385
Non-cash investing and financing activities:    
Debt discount from derivatives 4,614,714 5,352,404
Adjustment to derivative liability due to note repayment 40,511 1,374
Adjustment to derivative liability due to note conversion 10,945,413 3,421,579
Adjustment to derivative liability due to Allonge / ASID conversion 349,694   
Adjustment to derivative liability due to non-employee warrant conversion 176,555   
Adjustment to derivative liability due to warrant cancellation    1,318
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     
Issuance of common stock for cashless exercise of warrants     
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