XML 54 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash flows from operating activities:      
Net (loss) income $ (4,452,305) $ 2,384,729 $ (3,064,787)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:      
Stock-based expense 1,075,079 555,882 739,992
Depreciation and amortization expense 2,831,379 2,416,873 1,769,650
Provision (recovery) for doubtful accounts 136,350 75,384 (36,703)
Deferred tax liability (66,009)    
Disposal of property and equipment 86,388    
Expensing of deferred IPO costs 2,346,210    
Software license impairment charge     1,108,514
Accrued insurance proceeds (100,000)    
Non-cash interest expense on convertible debt   254,636 808,193
Non-cash interest expense on term debt     295,743
Warrant expense   14,928 89,741
Common stock issued for payment of account payable   20,000  
Derecognition of note payable   (700,000)  
Non-cash prepayment fee on conversion of convertible debt   601,318  
Changes in operating assets and liabilities net of effects of acquisitions:      
(Increase) decrease in settlement assets (575,707) 118,448 (46,859)
Increase in accounts receivables, prepaid expenses and other current assets (1,725,523) (1,825,403) (1,787,798)
Increase in software licenses     (80,209)
(Increase) decrease in security deposits and other assets (11,575) 32,051 52,247
Increase in accounts payable and accrued expenses 1,713,071 2,088,190 231,768
Increase (decrease) in due to merchants 409,076 (157,188) 201,103
Other (65,018) (13,128) (1)
Net cash provided by operating activities 1,601,416 5,866,720 280,594
Cash flows from investing activities:      
(Increase) decrease in restricted cash (9,448) 90,042  
Purchase of property and equipment (269,557) (161,705) (300,540)
Capitalized software development (1,360,091) (1,862,653) (1,970,349)
Purchase of intangible assets (149,420) (78,453) (79,618)
Cash paid for business combination, net of cash acquired (1,577,829)    
Net cash used in investing activities (3,366,345) (2,012,769) (2,350,507)
Cash flows from financing activities:      
Proceeds from issuance of common stock 774,749 269,965 6,058,702
Principal payments on capital lease obligations (324,795) (284,682) (187,144)
Payment of capital-raising expense     (343,969)
Repayment of long-term debt     (2,000,000)
Payment of IPO costs (354,531) (1,349,770)  
Net cash provided by (used in) financing activities 95,423 (1,364,487) 3,527,589
Effect of exchange rate changes on cash and cash equivalents     (27,600) [1]
Net (decrease) increase in cash and cash equivalents (1,669,506) 2,489,464 1,430,076
Beginning of period 7,671,963 5,182,499 3,752,423
End of period 6,002,457 7,671,963 5,182,499
Cash paid for:      
Interest 53,994 64,462 65,642
Income taxes 541,933 233,535 142
Non cash investing and financing activities:      
Convertible debt converted to common stock   8,979,926  
Common stock issued to pay accrued interest     1,103,936
Common stock issued for BPS acquisition 1,601,746    
Common stock issued for stock options and warrants exercised 13,335 354 19,661
Assets acquired under capital leases 530,984 349,484 223,965
Common stock issued for warrants exercised     2,000,000
Reduction of long-term debt through exercise of warrants     (2,000,000)
Accrued IPO costs   301,019  
Additional paid-In capital
     
Non cash investing and financing activities:      
Common stock issued for BPS acquisition $ 1,596,862    
[1] For the year ended December 31, 2012 and 2011, the effect of exchange rate changes on cash and cash equivalents was inconsequential.