Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net income $ 180,631 $ 177,715
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes 44,036 0
Depreciation and amortization 56,486 48,374
Amortization of intangibles 110,471 97,829
Share-based compensation 63,069 8,808
Common stock issued in exchange for services 38,500 0
Stock warrants issued in exchange for services 0 28,528
Changes in assets and liabilities:    
Accounts receivable (210,936) 271,063
Prepaid expenses and other current assets (436,616) (68,777)
Deposits and other assets (2,823) (1,068)
Accounts payable and accrued expenses and due to related party 101,227 (587,023)
Accrued interest (751) 421
Deferred revenue 363,197 311,010
Net cash provided by operating activities 306,491 286,880
Cash flows from investing activities:    
Purchase of property and equipment (10,344) (29,179)
Net cash used in investing activities (10,344) (29,179)
Cash flows from financing activities:    
Repayment of bank line of credit 0 (178,633)
Repayment of long-term debt (90,300) 0
Principal payments under capital leases obligations (30,198) (25,978)
Net cash used in financing activities (120,498) (204,611)
Net increase in cash and cash equivalents 175,649 53,090
Cash and cash equivalents – beginning of period 762,892 4,483
Cash and cash equivalents – end of period 938,541 57,573
Cash paid during period for:    
Interest 24,974 29,730
Income taxes $ 0 $ 0