Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,807,211) $ (2,026,437)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 256,459 203,775
Provision for losses on accounts receivable 50,600 57,600
Provision (recovery) for inventory reserve (32,000) (26,800)
Stock-based compensation 18,367 195,545
(Increase) decrease in:    
Short-term investments, restricted (202) (4,776)
Accounts receivable (1,091,242) (1,358,611)
Inventory 62,229 (760,836)
Unbilled revenue (646,398) 0
Due from related party 55,837 243,902
Prepaid assets and other current assets 62,833 (290,130)
Other assets (33,000) (4,000)
Increase (decrease) in:    
Accounts payable 1,187,036 338,796
Accrued expenses 331,632 80,459
Deferred revenue (2,186) 127,523
Interest payable, related party 83,560 71,208
Due to related party 119,667 0
Net cash used in operating activities (3,384,019) (3,152,782)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (202,700) (219,711)
Purchases of intangible assets (397,950) (164,296)
Cash paid for asset acquisition (497,800) 0
Sale of short-term investments 182,061 506,345
Net cash provided by (used in) investing activities (916,389) 122,338
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payments made on demand notes payable, related party 37,500 0
Proceeds from payments on receivable from shareholder 0 105,000
Proceeds from issuance of demand notes payable, related party 1,650,000 300,000
Proceeds from sale of common stock, net of costs 5,966,805 680,000
Proceeds from exercise of stock options 3,000 0
Proceeds from issuance of convertible debentures 3,000,000 0
Payments from debt issuance costs (140,433) 0
Purchase of restricted stock (350) (337)
Proceeds from sale of subsidiary common stock 0 500,000
Net cash provided by financing activities 10,441,522 1,584,663
Net increase (decrease) in cash and cash equivalents 6,141,114 (1,445,781)
Cash and cash equivalents, beginning of the year 1,572,785 3,018,566
Cash and cash equivalents, end of the year 7,713,899 1,572,785
Supplemental disclosures of cash flows information:    
Interest Paid 55,639 0
Non-cash investing and financing activities:    
Conversion of accrued convertible debenture interest into common stock 11,280 6,100
Conversion of related party notes to common stock 90,967 100,000
Settlement of shareholder receivable $ 0 $ 240,000