Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
OPERATING ACTIVITIES    
Net loss $ (3,059,449) $ (3,193,911)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Bad debt expense 4,111 $ 35,057
Common stock issued for services 363,001  
Stock-based compensation 766,464 $ 577,871
Depreciation and amortization expense 138,486 183,964
Change in fair value of derivative liabilities 6,815 $ (57,792)
Gain on adjustment in contingent consideration (2,000)  
Increase (decrease) in cash resulting from changes in:    
Accounts receivable 45,147 $ (96,782)
Other current assets (57,759) $ 13,755
Other assets (25,107)  
Accounts payable $ 125,134 $ 82,690
Accrued interest   1,680
Accrued and deferred personnel compensation $ (27,806) 17,159
Deferred revenue and customer deposits (112,447) (87,882)
Other liabilities 42,938 (10,016)
Net cash used in operating activities (1,792,472) (2,534,208)
INVESTING ACTIVITIES    
Purchases of equipment (50,513) $ (19,151)
Capitalized software development costs $ (402,106)  
Acquisitions   $ (2,368,019)
Net cash used in investing activities $ (452,619) (2,387,170)
FINANCING ACTIVITIES    
Proceeds from issuance of common stock, net of issuance costs 4,570,500 4,977,130
Net cash provided by financing activities 4,570,500 4,977,130
Net change in cash 2,325,409 55,752
Cash at beginning of period 848,230 2,572,685
Cash at end of period $ 3,173,639 2,628,437
Cash paid during period for:    
Interest   1,680
Non-cash investing and financing activities:    
Issuance of common stock for acquisitions   672,505
Earn-out payable recorded for acquisition   $ 2,273,000