Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
OPERATING ACTIVITIES    
Net loss $ (2,683,785) $ (2,309,503)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense 79,179 6,203
Common stock for services 270,000   
Stock-based compensation 210,429 596,336
Stock issued for late payment 160,468   
Depreciation and amortization expense 301,382 126,778
Gain on adjustment in contingent consideration (76,782)   
Change in fair market value of derivative liabilities (193,990) 584,506
Amortization of deferred financing costs 100,857 20,000
Amortization of note discounts 1,020,749 161,565
Loss on sale of assets 164   
Increase (decrease) in cash resulting from changes in:    
Accounts receivable (11,023) (111,966)
Other current assets (540,553) 34,362
Other assets (2,060) (41,433)
Accounts payable (189,617) 152,145
Accrued interest 83,598 53,727
Accrued and deferred personnel compensation (22,826) 8,161
Deferred revenue and customer deposits (86,611) 90,321
Other liabilities 454,123 29,346
Net cash used in operating activities (1,225,514) (599,452)
INVESTING ACTIVITIES    
Purchases of equipment (9,732) (6,186)
Acquisition of intangible assets    (75,001)
Cash paid for acquisitions    (91,153)
Net cash used in investing activities (9,732) (172,340)
FINANCING ACTIVITIES    
Proceeds from issuance of notes payable, net of finance offering costs 3,148,470 10,000
Payments on notes payable (772,547) (97,153)
Payments on cash payment obligation (87,500) (25,000)
Proceeds from issuance of common stock and warrants net of equity offering costs    533,701
Net cash provided by financing activities 2,288,423 421,548
Net change in cash 1,053,177 (350,244)
Cash at beginning of period 396 373,439
Cash at end of period 1,053,573 23,195
Cash paid during period for :    
Interest 33,108 3,113
Non cash investing and financing activities:    
Common stock issued for patents and trademarks    50,000
Debt discount 2,733,412   
Adjustment to derivative liability due to debt repayment 181,646   
Adjustment to derivative liability due to debt conversion 1,020,859   
Conversion of accrued interest into debt 137,649   
Fair value of assets acquired in acquisitions    41,414
Customer contracts    1,026,000
Customer relationships    814,000
Trade name    101,000
Technology / IP    399,000
Non-compete    6,000
Goodwill    9,063,763
Assumed liabilities - deferred revenue    (20,000)
Subordinated secured note payable    (606,064)
Cash payment obligation    (241,960)
Common stock issued for acquisitions    (10,492,000)
Cash paid for acquisitions    $ 91,153