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, 2014
Jun. 30, 2013
Dec. 31, 2013
OPERATING ACTIVITIES      
Net loss $ (3,193,911) $ (12,298,036)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Bad debt expense 35,057 (10,778)  
Common stock issued for services    18,375  
Stock-based compensation 577,871 1,277,794  
Depreciation and amortization expense 183,964 92,129  
Gain (loss) on adjustment in contingent consideration    193,465  
Change in fair value of derivative liabilities 57,792 (3,813,598)  
Amortization of note discounts    6,134,367  
Increase (decrease) in cash resulting from changes in:      
Accounts receivable (96,782) 147,184  
Other current assets 13,755 (33,733)  
Other assets        
Accounts payable 82,690 (84,388)  
Accrued interest 1,680 159,132  
Deferred revenue - related party 17,159 25,747  
Accrued and deferred personnel compensation    (35,262)  
Deferred revenue and customer deposits (87,882) 1,926  
Other liabilities (10,016) 119,061  
Net cash used in operating activities (2,534,208) (479,419)  
INVESTING ACTIVITIES      
Purchases of equipment (19,151) (2,799)  
Acquisitions (2,368,019) (400,000)  
Net cash used in investing activities (2,387,170) (402,799)  
FINANCING ACTIVITIES      
Proceeds from issuance of notes payable, net of finance offering costs    700,000 700,000
Payments on notes payable    (1,609,682) (1,609,682)
Proceeds from issuance of common stock, net of issuance costs 4,977,130 6,789,685  
Net cash provided by financing activities 4,977,130 5,880,003  
Net change in cash 55,752 4,997,785  
Cash at beginning of period 2,572,685 363 363
Cash at end of period 2,628,437 4,998,148 2,572,685
Cash paid during period for:      
Interest 1,680 51,569  
Non-cash investing and financing activities:      
Debt discount from derivatives    4,614,714  
Adjustment to derivative liability due to note repayment    40,511  
Adjustment to derivative liability due to note conversion    10,724,967  
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 672,505 1,218,060  
Issuance of note payable for acquisition    1,365,096  
Earn-out payable recorded for acquisition 2,273,000 224,000  
Conversion of notes payable into common stock    4,984,720  
Conversion of accrued interest into common stock    36978600.00%  
Settlement of working capital asset related to the Boomtext acquisition    $ 153,317