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, 2014
Sep. 30, 2013
Dec. 31, 2013
OPERATING ACTIVITIES      
Net loss $ (4,631,978) $ (14,702,351)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Bad debt expense 37,687 10,843  
Common stock payable for services 199,575 86,006  
Stock-based compensation 869,394 2,349,832  
Depreciation and amortization expense 300,273 181,262  
Gain (loss) on adjustment in contingent consideration    193,465  
Change in fair value of derivative liabilities (55,438) 3,865,511  
Amortization of note discounts    6,134,367  
Increase (decrease) in cash resulting from changes in:      
Accounts receivable 51,185 (71,125)  
Other current assets 20,778 (88,091)  
Other assets (8,290) 27,999  
Accounts payable (55,797) 624  
Accrued interest 2,562 64,535  
Deferred revenue - related party 39,675 (90,795)  
Accrued and deferred personnel compensation    (35,262)  
Deferred revenue and customer deposits (139,510) (8,309)  
Other liabilities (13,925) (3,325)  
Net cash used in operating activities (3,383,809) (2,084,814)  
INVESTING ACTIVITIES      
Purchases of equipment (24,865) (2,799)  
Acquisitions (2,368,019) (400,000)  
Net cash used in investing activities (2,392,884) (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 6,897,177  
Net cash provided by financing activities 4,977,130 5,987,495  
Net change in cash (799,563) 3,499,882  
Cash at beginning of period 2,572,685 363 363
Cash at end of period 1,773,122 3,500,245 2,572,685
Cash paid during period for:      
Interest 2,563 146,973  
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    10,726,967  
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 1,296,060  
Issuance of comon stock for cashless exercise of warrants    23,904  
Issuance of common stock for accrued bonus    37,000  
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