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, 2018
Dec. 31, 2017
Cash flows from operating activities:    
Net income (loss) $ 262,432 $ (486,469)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Deferred income taxes 70,945 1,051,902
Depreciation and amortization 326,285 255,362
Amortization of intangibles 376,800 364,934
Bad debt write-off expense 96,026 44,147
Share-based compensation 28,000 34,265
Common stock issued in exchange for services 45,306 47,500
Stock warrants in exchange for services 0 19,923
Changes in certain assets and liabilities:    
Accounts receivable (137,687) 120,993
Unbilled services 255,761 35,355
Prepaid expenses and other current assets (77,439) (72,817)
Deposits and other assets 3,757 (7,425)
Accounts payable (66,078) 272,226
Accrued expenses 488,753 247,924
Income tax payable (77,097) (80,369)
Accrued interest 750 750
Deferred revenues (301,950) 460,624
Net cash provided by operating activities 1,294,564 2,308,825
Cash flows from investing activities:    
Software development costs (617,545) (514,280)
Acquisition of customer list 0 (60,000)
Acquisition of business (300,000) 0
Purchases of property and equipment (146,001) (241,230)
Net cash used in investing activities (1,063,546) (815,510)
Cash flows from financing activities:    
Payment of cash dividend 0 (359,014)
Payment for repurchase of common stock (3,661) 0
Repayment of contingent consideration (83,087) (106,079)
Repayments of long term debt (346,997) (306,678)
Principal payment under capital lease obligations (131,763) (107,246)
Net cash used in financing activities (565,508) (879,017)
Net (decrease) increase in cash (334,490) 614,298
Cash, beginning of year 2,235,347 1,621,049
Cash, end of year 1,900,857 2,235,347
Income taxes 217,210 335,398
Interest $ 43,337 $ 30,946