XML 41 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:    
Net (loss) income $ (430,218) $ 1,315,004
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Provision for bad debts 240,000 40,000
Gain from debt extinguishment (95,568) (150,562)
Interest expense related to warrant amortization 168,408 163,546
Accretion of debt discount on long term debt 41,679 0
Stock based compensation 474,084 265,585
Common stock issued in settlement of litigation 326,650 0
Depreciation and amortization expense 10,583 0
Changes in operating assets and liabilities:    
Accounts receivable, net (905,627) (2,894,979)
Related party receivable 163,703 (140,106)
Prepaid expenses 26,416 52,250
Due to related party 57,810 0
Accounts payable and accrued liabilities (644,147) 706,730
Net cash used in operating activities (566,227) (642,532)
Cash flows from investing activities:    
Purchase of equipment (5,000) 0
Net cash used in investing activities (5,000) 0
Cash flows from financing activities:    
Proceeds from exercise of stock options 0 77,000
Proceeds from issuance of long-term debt and warrants 1,550,000 200,000
Treasury stock recovered and cancelled in legal dispute 0 (36,789)
Proceeds from related party notes payable 296,300 642,453
Repayments on related party notes payable (311,900) (362,753)
Net cash provided by financing activities 1,534,400 519,911
Net increase (decrease) in cash and cash equivalents 963,173 (122,621)
Cash and cash equivalents at beginning of period 54,582 177,203
Cash and cash equivalents at end of period 1,017,755 54,582
Supplementary disclosure of cash flow information:    
Interest paid 114,059 37,726
Taxes paid 0 0
Supplementary disclosure of non-cash investing and financing activities:    
Warrants issued for debt costs associated with sale of debentures 0 279,000
Common stock issued to acquire Gleric Holdings, LLC 231,200 0
Common stock issued in conversion of related party payable $ 1,020,200 $ 0