Quarterly report pursuant to sections 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net income (loss) $ 95,496 $ (939,414)
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 71,374 61,776
Amortization of intangibles 147,231 52,600
Amortization of debt discount 0 4,250
Share-based compensation 34,212 1,131,854
Common stock issued for services 0 20,000
Stock warrants issued in exchange for services 28,528 31,089
Changes in assets and liabilities:    
Accounts receivable 335,833 (786,540)
Prepaid expenses and other current assets (82,923) 2,521
Deposits and other assets (161) 20,444
Accounts payable and accrued expenses (153,774) 380,610
Accrued interest 788 5,208
Deferred revenue 385,399 169,065
Net cash provided by operating activities 862,003 153,463
Cash flows from investing activities:    
Acquisition of intangible assets 0 (157,258)
Acquisition of new business 0 (441,964)
Purchase of property and equipment (31,375) (56,077)
Net cash used in investing activities (31,375) (655,299)
Cash flows from financing activities:    
Proceeds from line of credit 0 403,008
Repayment of bank line of credit (178,633) 0
Proceeds from term loan 350,000 0
Repayment of term loan (29,250) 0
Principal payments under capital leases obligations (39,220) (33,554)
Net cash provided by financing activities 102,897 369,454
Net increase (decrease) in cash and cash equivalents 933,525 (132,382)
Cash and cash equivalents – beginning of period 4,483 233,722
Cash and cash equivalents – end of period 938,008 101,340
Cash paid during period for:    
Interest expense 50,525 29,490
Income taxes $ 0 $ 0