Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
OPERATING ACTIVITIES    
Net loss $ (16,312,989) $ (1,229,583)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on debt extinguishment 0 (199,401)
Bad debt expense 21,514 6,276
Stock issued for services 25,000 0
Stock-based compensation 1,380,256 156,785
Depreciation and amortization expense 751,072 6,348
Gain on adjustment in contingent consideration (999,347) 0
Change in fair market value of derivative liabilities 1,234,145 14,861
Amortization of deferred financing costs 39,958 6,667
Amortization of note discounts 370,810 50,789
Goodwill impairment 10,435,170 0
Intangible asset impairment 1,325,134 0
Increase (decrease) in cash resulting from changes in:    
Accounts receivable (216,145) (6,250)
Other current assets 25,331 (68,033)
Other assets (1,800) 0
Accounts payable 576,304 255,443
Settlement payable (24,917) 0
Accrued interest 112,796 68,288
Accrued and deferred personnel compensation 118,050 147,359
Deferred revenue and customer deposits 72,887 (94,386)
Other liabilities 176,085 65,880
Net cash used in operating activities (890,685) (818,957)
INVESTING ACTIVITIES    
Purchases of equipment (12,189) 0
Acquisition of intangible assets (77,000) 0
Cash paid for acquisitions (209,833) 0
Net cash used in investing activities (299,022) 0
FINANCING ACTIVITIES    
Proceeds from capital contributions by former parent 0 249,897
Proceeds from issuance of notes payable 272,500 1,043,615
Payments on notes payable (304,539) (128,615)
Payments on cash payment obligation (162,500) 0
Proceeds from issuance of common stock and warrants, 0 16,496
net of equity offering costs 1,011,203 0
Net cash provided by financing activities 816,664 1,181,393
Net change in cash (373,043) 362,436
Cash at beginning of period 373,439 11,003
Cash at end of period 396 373,439
Supplemental disclosures:    
Interest 20,650 1,436
Income Taxes 3,220 0
Non cash investing and financing activities:    
Debt discount 149,197 319,617
Conversion of accounts payable into common stock 0 893,469
Conversion of notes payable and interest into common stock 230,272 385,592
Effect of conversion of debt into common stock on derivative liability 143,961 0
Shares issued in acquisitions 11,318,069 0
Conversion of accrued compensation into common stock 0 224,537
Conversion of notes payable and interest into deferred revenue 0 200,000
Common stock issued for patents and trademarks $ 50,000 $ 0