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 $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities:    
Net income $ 120,741 $ 115,530
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes 24,110 0
Depreciation and amortization 28,330 27,353
Amortization of intangibles 49,402 48,427
Share-based compensation 11,284 4,404
Common stock issued in exchange for services 20,975 0
Stock warrants issued in exchange for services 0 28,512
Changes in assets and liabilities:    
Accounts receivable (9,832) 318,604
Prepaid expenses and other current assets (87,477) (24,381)
Deposits and other assets 0 (159)
Accounts payable and accrued expenses and due to related party 73,555 (224,415)
Accrued interest (271) 230
Deferred revenue 169,810 176,858
Net cash provided by operating activities 400,627 470,963
Cash flows from investing activities:    
Purchase of property and equipment 0 (23,065)
Net cash used in investing activities 0 (23,065)
Cash flows from financing activities:    
Repayment of bank line of credit 0 (178,633)
Repayment of long-term debt (41,995) 0
Principal payments under capital leases obligations (14,615) (12,440)
Net cash used in financing activities (56,610) (191,073)
Net increase in cash and cash equivalents 344,017 256,825
Cash and cash equivalents – beginning of period 762,892 4,483
Cash and cash equivalents – end of period 1,106,909 261,308
Cash paid during period for:    
Interest 4,503 16,000
Income taxes $ 0 $ 0