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, 2021
Dec. 31, 2020
Cash flows from operating activities:    
Net (loss) income $ (134,434) $ 175,647
Adjustments to reconcile net (loss) income to net cash provided by operating activities:    
Deferred income taxes 48,126 (164,602)
Depreciation and amortization 346,202 314,369
Amortization of intangibles 531,102 391,563
Amortization of right of use assets 517,387 416,061
Bad debt recovery (44,689) (2,274)
Share-based compensation 441,310 10,194
Gain on sale of product line (250,000) 0
Gain on bargain purchase (71,359) 0
Changes in assets and liabilities:    
Accounts receivable (301,928) 977,451
Unbilled services (232,146) 131,412
Prepaid expenses and other current assets (784,908) 54,614
Deposits and other assets 7,921 354
Accounts payable 162,910 (335,503)
Accrued expenses 412,362 141,040
Income tax payable (248,417) 165,676
Accrued interest 7,578 5,828
Deferred revenues 336,404 (136,678)
Operating lease obligations (517,387) (416,061)
Net cash provided by operating activities 226,034 1,729,091
Cash flows from investing activities:    
Purchase of property and equipment (114,761) (124,782)
Acquisition of business (645,703) (185,410)
Proceeds from sale of product line 250,000 0
Escrow accounts receivable 0 1,150,000
Net cash (used in) provided by investing activities (510,464) 839,808
Cash flows from financing activities:    
Payment of cash dividend (3,081,706) (4,051,145)
Proceeds from PPP loan 0 3,150,832
Payment of PPP loan 0 (3,150,832)
Proceeds from issuance of stock, net of expenses 4,180,904 0
Payment of long-term debt (213,523) (9,179)
Payment of long-term debt – related party (162,398) (131,827)
Payment of long-term convertible debt – related party (46,725) (277,106)
Payment of finance lease obligations (173,421) (162,627)
Net cash provided by (used in) financing activities 503,131 (4,631,884)
Net increase (decrease) in cash 218,701 (2,062,985)
Cash, beginning of year 6,595,416 8,658,401
Cash, end of year 6,814,117 6,595,416
Income taxes 380,997 41,957
Interest $ 45,116 $ 36,915