Annual report pursuant to section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net income (loss) $ 322,548 $ (1,235,170)
Adjustments to reconcile net loss to net cash used in operating activities:    
Deferred income taxes (120,000) 0
Depreciation and amortization 105,330 92,037
Amortization of intangibles 196,633 103,523
Amortization of debt discount 0 4,250
Provision for bad debts 0 39,000
Share-based compensation 17,616 1,136,258
Gain from bargain purchase 0 (17,932)
Common stock issued for services 21,000 35,000
Warrant issued in exchange for services 28,528 105,080
Changes in certain assets and liabilities:    
Accounts receivable (65,464) (667,315)
Prepaid expenses and other assets (27,756) 22,240
Deposits and other assets (840) 35,925
Accounts payable and accrued liabilities (91,953) 693,137
Accrued interest 869 4,747
Due to related parties (3,270) (393)
Deferred revenues 357,755 42,416
Net cash provided by operating activities 740,996 392,803
Cash flows from investing activities:    
Acquisition of new business 0 (441,964)
Software development costs 0 (198,591)
Purchases of equipment (30,364) (103,819)
Net cash used in investing activities (30,364) (744,374)
Cash flows from financing activities:    
Repayment of notes payable to related parties 0 (7,054)
Proceeds from (repayment of) line of credit, net (178,633) 178,633
Proceed from term loan 350,000 0
Repayment of term loan (70,483) 0
Principal payment under capital lease obligations (53,107) (49,247)
Net cash provided by financing activities 47,777 122,332
Net increase (decrease) in cash and cash equivalents 758,409 (229,239)
Cash and cash equivalents, beginning of year 4,483 233,722
Cash and cash equivalents, end of year 762,892 4,483
During the year, cash was paid for the following:    
Income taxes 0 0
Interest $ 69,134 $ 66,776