XML 68 R5.htm IDEA: XBRL DOCUMENT v2.4.1.9
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Cash flows from operating activities    
Net loss $ (508,965)us-gaap_NetIncomeLoss $ (3,731,373)us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt (recoveries) 152,455us-gaap_ProvisionForDoubtfulAccounts (12)us-gaap_ProvisionForDoubtfulAccounts
Depreciation and amortization 43,965us-gaap_DepreciationDepletionAndAmortization 46,156us-gaap_DepreciationDepletionAndAmortization
Amortization of deferred financing costs 39,791us-gaap_AmortizationOfFinancingCosts 106,341us-gaap_AmortizationOfFinancingCosts
Amortization of discounts on convertible debts 197,786us-gaap_AmortizationOfDebtDiscountPremium 316,907us-gaap_AmortizationOfDebtDiscountPremium
Change in fair market value of derivative liabilities 77,110us-gaap_DerivativeGainLossOnDerivativeNet 793,579us-gaap_DerivativeGainLossOnDerivativeNet
Stock based compensation issued for services 0epaz_StockBasedCompensationIssuedForServices 37,500epaz_StockBasedCompensationIssuedForServices
Stock based compensation issued for services, related party 0epaz_StockBasedCompensationIssuedForServicesRelatedParty 2,236,489epaz_StockBasedCompensationIssuedForServicesRelatedParty
Decrease (increase) in assets:    
Accounts receivable (153,935)us-gaap_IncreaseDecreaseInAccountsReceivable (9,052)us-gaap_IncreaseDecreaseInAccountsReceivable
Other current assets 0us-gaap_IncreaseDecreaseInOtherCurrentAssets 246us-gaap_IncreaseDecreaseInOtherCurrentAssets
Increase (decrease) in liabilities:    
Accounts payable 6,363us-gaap_IncreaseDecreaseInAccountsPayable 40,324us-gaap_IncreaseDecreaseInAccountsPayable
Accrued expenses (85)us-gaap_IncreaseDecreaseInAccruedLiabilities (8,460)us-gaap_IncreaseDecreaseInAccruedLiabilities
Accrued expenses, related parties 42,822us-gaap_IncreaseDecreaseInAccountsPayableRelatedParties 29,072us-gaap_IncreaseDecreaseInAccountsPayableRelatedParties
Deferred revenues (68,683)us-gaap_IncreaseDecreaseInDeferredRevenue (25,903)us-gaap_IncreaseDecreaseInDeferredRevenue
Net cash provided by (used in) operating activities (171,417)us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations (168,186)us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
Cash flows from investing activities    
Cash acquired in merger 0us-gaap_CashAcquiredFromAcquisition 736us-gaap_CashAcquiredFromAcquisition
Purchase of equipment (7,236)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (2,211)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Acquisition of subsidiaries 0us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired (200,000)us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired
Net cash used in investing activities (7,236)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations (201,475)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
Cash flows from financing activities    
Payments on capital lease obligations payable (1,141)us-gaap_RepaymentsOfDebtAndCapitalLeaseObligations (5,701)us-gaap_RepaymentsOfDebtAndCapitalLeaseObligations
Proceeds from notes payable, related parties 113,375us-gaap_ProceedsFromRelatedPartyDebt 323,314us-gaap_ProceedsFromRelatedPartyDebt
Repayment of notes payable, related parties (38,500)us-gaap_RepaymentsOfRelatedPartyDebt (54,879)us-gaap_RepaymentsOfRelatedPartyDebt
Proceeds from convertible debts 253,179us-gaap_ProceedsFromConvertibleDebt 0us-gaap_ProceedsFromConvertibleDebt
Proceeds from long term debts 196,052us-gaap_ProceedsFromIssuanceOfLongTermDebt 93,268us-gaap_ProceedsFromIssuanceOfLongTermDebt
Repayment of long term debt (418,255)us-gaap_RepaymentsOfLongTermDebt (90,371)us-gaap_RepaymentsOfLongTermDebt
Net cash provided by financing activities 104,710us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations 265,631us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
Net increase (decrease) in cash (73,943)us-gaap_CashPeriodIncreaseDecrease (104,030)us-gaap_CashPeriodIncreaseDecrease
Cash - beginning 106,708us-gaap_Cash 208,567us-gaap_Cash
Cash - ending 32,765us-gaap_Cash 104,537us-gaap_Cash
Supplemental disclosures:    
Interest paid 291,435us-gaap_InterestPaid 94,163us-gaap_InterestPaid
Income taxes paid 0us-gaap_IncomeTaxesPaid 0us-gaap_IncomeTaxesPaid
Non-cash investing and financing activities:    
Acquisition of subsidiary in exchange for debt 0us-gaap_NoncashOrPartNoncashAcquisitionDebtAssumed1 102,000us-gaap_NoncashOrPartNoncashAcquisitionDebtAssumed1
Value of shares issued for conversion of debt 138,803us-gaap_StockIssued1 369,714us-gaap_StockIssued1
Beneficial conversion feature 222,228us-gaap_AdjustmentsToAdditionalPaidInCapitalConvertibleDebtWithConversionFeature 35,028us-gaap_AdjustmentsToAdditionalPaidInCapitalConvertibleDebtWithConversionFeature
Discount on derivatives 82,366epaz_DiscountOnDerivatives 0epaz_DiscountOnDerivatives
Deferred financing costs 28,750epaz_DeferredFinancingCosts 141,815epaz_DeferredFinancingCosts
Conversion of Preferred C to Common A 1,974,352epaz_ConversionOfPreferredCToCommon 0epaz_ConversionOfPreferredCToCommon
Derivative adjustment due to debt conversion 134,994epaz_DerivativeAdjustmentDueToDebtConversion 642,481epaz_DerivativeAdjustmentDueToDebtConversion
Dividends payable declared $ 0us-gaap_DistributedEarnings $ 11,000us-gaap_DistributedEarnings