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 $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
OPERATING ACTIVITIES    
Net loss $ (1,763,748) $ (2,423,215)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Bad debt expense 3,983 (12,772)
Stock-based compensation 317,351 93,502
Depreciation and amortization expense 68,084 33,813
Gain (Loss) on adjustment in contingent consideration    (305,712)
Change in fair value of derivative liabilities (30,079) 1,001,550
Amortization of note discounts    1,334,729
Increase (decrease) in cash resulting from changes in:    
Accounts receivable (3,351) 216,165
Other current assets 11,219 (59,225)
Accounts payable 127,561 93,165
Accrued interest 826 108,031
Accrued and deferred personnel compensation 4,275 (24,605)
Deferred revenue and customer deposits (16,962) 5,323
Other liabilities 118,074 (260)
Net cash used in operating activities (1,162,767) 60,489
INVESTING ACTIVITIES    
Purchases of equipment (22,225)   
Acquisitions (2,368,019) (195,630)
Net cash used in investing activities (2,390,244) (195,630)
FINANCING ACTIVITIES    
Proceeds from issuance of notes payable, net of finance offering costs   200,000
Payments on notes payable   (21,040)
Proceeds from issuance of common stock, net of issuance costs 4,964,358   
Net cash provided by financing activities 4,964,358 178,960
Net change in cash 1,411,347 43,819
Cash at beginning of period 2,572,685 363
Cash at end of period 3,984,032 44,182
Cash paid during period for:    
Interest    3,960
Non-cash investing and financing activities:    
Note discount    133,725
Adjustment to derivative liability due to note repayment    15,406
Earn-out payable recorded for acquisition 2,273,000   
Common stock payable recorded for earn out payment related to the Boomtext acquisition   1,711,490
Issuance of common stock for acquisitions 672,505   
Settlement of working capital asset related to the Boomtext acquisition    $ 153,317