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, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net income $ 621,397 $ 565,768
Adjustments to reconcile net income to net cash provided by operating activities:    
Deferred income taxes (351,000) (181,000)
Depreciation and amortization 116,285 78,007
Amortization of intangibles 226,172 154,302
Provision for bad debts 59,837 0
Share-based compensation 23,904 40,937
Common stock issued in exchange for services 0 36,300
Changes in certain assets and liabilities:    
Accounts receivable (460,690) 101,701
Unbilled services 229,717 (616,209)
Prepaid expenses and other current assets 120,735 (88,713)
Deposits and other assets (1,881) 465
Accounts payable (4,773) (257,589)
Accrued expenses (77,751) (224,115)
Income tax payable 328,157 231,778
Accrued interest 2,165 (520)
Deferred revenues (587,118) 391,805
Net cash provided by operating activities 245,156 232,917
Cash flows from investing activities:    
Purchase of property and equipment (151,594) (24,869)
Software development costs (85,140) 0
Acquisition of new business 0 (80,000)
Net cash used in investing activities (236,734) (104,869)
Cash flows from financing activities:    
Proceeds from issuance of common stock and warrants, net of fees 0 812,023
Payment of cash dividend (264,699) 0
Repayment of contingent consideration (67,282) 0
Repayment of long term debt (149,195) (144,916)
Principal payments under capital leases obligations (49,130) (40,736)
Net cash (used in) provided by financing activities (530,306) 626,371
Net (decrease) increase in cash and cash equivalents (521,884) 754,419
Cash and cash equivalents – beginning of period 1,193,313 1,308,337
Cash and cash equivalents – end of period 671,429 2,062,756
Cash paid during period for:    
Interest 39,817 27,747
Income taxes $ 43,860 $ 0