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 $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net income $ 428,796 $ 95,496
Adjustments to reconcile net income to net cash provided by operating activities    
Deferred income taxes 51,000 0
Depreciation and amortization 84,682 71,374
Amortization of intangibles 177,373 147,231
Share-based compensation 119,161 34,212
Common stock issued in exchange for services 69,500 0
Stock warrants issued in exchange for services 0 28,528
Changes in assets and liabilities:    
Accounts receivable (349,432) 335,833
Unbilled services (398,000) (133,000)
Prepaid expenses and other current assets (63,146) 50,077
Deposits and other assets (3,739) (161)
Accounts payable and accrued expenses and due to related party 415,931 (153,774)
Accrued interest 1,401 788
Deferred revenue 377,297 385,399
Net cash provided by operating activities 910,824 862,003
Cash flows from investing activities:    
Purchase of property and equipment (10,344) (31,375)
Net cash used in investing activities (10,344) (31,375)
Cash flows from financing activities:    
Repayment of bank line of credit 0 (178,633)
Proceeds from term loan 0 350,000
Repayment of note payable to related party (20,000) 0
Repayment of long-term debt (150,653) (29,250)
Principal payments under capital leases obligations (42,946) (39,220)
Net cash (used in) provided by financing activities (213,599) 102,897
Net increase in cash and cash equivalents 686,881 933,525
Cash and cash equivalents – beginning of period 762,892 4,483
Cash and cash equivalents – end of period 1,449,773 938,008
Cash paid during period for:    
Interest 48,391 50,525
Income taxes $ 0 $ 0