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Quarterly report pursuant to sections 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.6
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities:    
Net loss $ (3,454,400) $ (350,821)
Adjustments to reconcile net loss to net cash (used in) operating activities:    
Provision for bad debts 84,476 10,060
Receivable collateral valuation service 309,117 0
Amortization of debt issuance costs 85,565 0
Gain on disposal of property and equipment (5,879) 0
Depreciation and amortization 185,937 106,404
Issuance of convertible notes in exchange for service rendered 38,175 22,000
Stock-based compensation 113,124 0
Changes in operating assets and libilities, net of effects of acquisition:    
Accounts receivable (331,690) (83,309)
Accounts receivable, secured-related party 0 7,376
Prepaid expenses and other current assets (13,083) (29,489)
Accounts payable 375,510 258,189
Accrued expenses 535,163 (70,161)
Deferred rent (2,145) (1,162)
Deferred revenue 96,672 4,969
Net cash (used in) operating activities (1,983,458) (125,944)
Cash flow from investing activities:    
Cash acquired as part of merger 337 3,200
Purchases of property and equipment (6,005) (115,046)
Purchases of intangible assets (306,989) (427,603)
Increase in restricted cash (105,932) 0
Proceeds received from officer loan repayment 150,000 0
Net cash (used in) investing activities (268,589) (539,449)
Cash flows from financing activities:    
Proceeds from (repayments in) line of credit, net (10,512) (4,293)
Principal payment on note payable 0 (2,874)
Proceeds from note payable 22,000 0
Proceeds received from issuance of convertible notes and warrants 2,006,000 328,000
Disbursemenents for debt issuance costs (266,473) 0
Proceeds from issuance of Series A and D preferred stock 0 1,169,419
Repayments of convertible notes payable 0 (10,000)
Disbursements to purchase treasury shares 0 (740,000)
Net cash provided by financing activities 1,751,015 740,252
Net (decrease) increase in cash and cash equivalents (501,032) 74,859
Cash and cash equivalents at beginning of period 766,602 294,838
Cash and cash equivalents at end of period 265,570 369,697
Supplemental disclosure of cash flow information:    
Cash paid for interest 89,942 13,058
Cash paid for income taxes 0 0
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of all preferred shares into common shares   0
Conversion of loans payable to convertible notes payable 200,000 0
Liabilities assumed in recapitalization 21,206 0
Conversion of convertible notes payable into common shares 20,000 0
Settlement of notes payable by disposal of property and equipment 15,151 0
Issuance of convertible notes payable to pay accounts payable 11,650 0
Conversion of convertible notes payable into Preferred Series B shares 0 350,000
Recognition of accrual to rescing common shares $ 0 $ 165,000