Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities:    
Net (loss) income $ (486,469) $ 3,436,399
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Deferred income taxes 1,051,902 (2,214,902)
Depreciation and amortization 255,362 232,316
Amortization of intangibles 364,934 452,344
Bad debt write-off 44,147 0
Share-based compensation 34,265 42,795
Common stock issued in exchange for services 47,500 0
Stock warrants in exchange for services 19,923 0
Changes in certain assets and liabilities:    
Accounts receivable 120,993 (24,320)
Unbilled services 35,355 277,980
Prepaid expenses and other current assets (72,817) 112,525
Deposits and other assets (7,425) 1,002
Accounts payable 272,226 227,970
Accrued expenses 247,924 2,005
Income tax payable (80,369) (72,818)
Accrued interest 750 716
Deferred revenues 460,624 (679,852)
Net cash provided by operating activities 2,308,825 1,794,160
Cash flows from investing activities:    
Software development costs (514,280) (311,917)
Acquisition of customer list (60,000)  
Purchases of property and equipment (241,230) (184,802)
Net cash used in investing activities (815,510) (496,719)
Cash flows from financing activities:    
Payment of cash dividend (359,014) (264,699)
Proceeds from issuance of preferred stock 0 100
Repayment of contingent consideration (106,079) (188,933)
Repayments of long term debt (306,678) (300,033)
Principal payment under capital lease obligations (107,246) (116,140)
Net cash used in financing activities (879,017) (869,705)
Net increase in cash 614,298 427,736
Cash, beginning of year 1,621,049 1,193,313
Cash, end of year 2,235,347 1,621,049
During the year, cash was paid for the following:    
Income taxes 335,398 100,885
Interest $ 30,946 $ 64,462