Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
 9 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
OPERATING ACTIVITIES        
Net loss $ (5,040,183) $ (3,883,143)    
Adjustments to reconcile net loss to net cash used in operating activities:        
Bad debt expense 104,484       
Common stock for services 270,000       
Stock-based compensation 314,990 1,154,724 976,255 156,785
Stock issued for late payment 160,468       
Depreciation and amortization expense 431,962 318,560    
Loss on adjustment in contingent consideration 81,161       
Change in fair market value of derivative liabilities (407,079) 986,216    
Amortization of deferred financing costs 239,943 30,000    
Amortization of note discounts 2,551,161 248,412    
Loss on sale of assets (164)       
Increase (decrease) in cash resulting from changes in:        
Accounts receivable (208,898) (269,704)    
Other current assets (200,915) 28,525    
Other assets 1,540 (33,333)    
Accounts payable (442,920) 314,920    
Accounts payable - related party 10,226       
Accrued interest 195,225 83,022    
Accrued and deferred personnel compensation (25,312) 41,122    
Deferred revenue - related party (157,538)       
Deferred revenue and customer deposits 12,984 112,639    
Other liabilities 42,594 74,580    
Net cash used in operating activities (2,065,943) (793,460)    
INVESTING ACTIVITIES        
Purchases of equipment (9,732) (12,189)    
Acquisition of intangible assets    (77,000)    
Cash paid for acquisitions    (209,833)    
Net cash used in investing activities (9,732) (299,022)    
FINANCING ACTIVITIES        
Proceeds from issuance of notes payable, net of finance offering costs 3,148,470 (10,000)    
Payments on notes payable (819,300) (201,008)    
Payments on cash payment obligation (87,500) (100,000)    
Proceeds from issuance of common stock and warrants net of equity offering costs    1,011,203    
Net cash provided by financing activities 2,241,670 720,195    
Net change in cash 165,995 (372,287)    
Cash at beginning of period 396 373,439 373,439  
Cash at end of period 166,391 1,152 396 373,439
Cash paid during period for :        
Interest 33,108 11,048    
Income taxes    1,562    
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 69,332       
Adjustment to derivative liability due to debt conversion 1,020,859    143,961  
Conversion of accrued interest into debt 137,649       
Fair value of assets acquired in acquisitions    44,414    
Customer contracts    1,026,000    
Customer relationships    1,406,000    
Trade name    140,000    
Technology / IP    458,000    
Non-compete    16,000    
Goodwill    9,777,820    
Assumed liabilities - deferred revenue    (134,849)    
Subordinated secured note payable    (781,064)    
Subordinated note payable   (182,460)    
Cash payment obligation    (241,960)    
Common stock issued for acquisitions    (11,318,068)    
Cash paid for acquisitions    $ 209,833