|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
|
3 Months Ended |
12 Months Ended |
|
Mar. 31, 2013
|
Mar. 31, 2012
|
Dec. 31, 2012
|
Dec. 31, 2011
|
| Cash flows from operating activities: |
|
|
|
|
| Net loss |
$ (948,871) |
$ (1,789,766) |
$ (6,010,734) |
$ (2,135,573) |
| Less income from discontinued operations |
(18,664) |
127,146 |
136,310 |
457,566 |
| Loss from continuing operations |
(930,207) |
(1,916,912) |
(6,147,044) |
(2,593,139) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
| Bad debt expense |
22,000 |
32,955 |
133,907 |
21,200 |
| Receivable collateral valuation service |
|
|
502,315 |
|
| Amortization of debt issuance costs |
|
|
266,473 |
|
| Gain on disposal of property and equipment |
|
(5,879) |
(5,879) |
|
| Depreciation and amortization |
120,357 |
89,749 |
397,923 |
264,082 |
| Loss on settlement of accrued interest |
|
|
3,339 |
|
| Issuance of convertible notes in exchange for services rendered |
|
|
38,175 |
22,000 |
| Stock-based compensation |
117,847 |
66,104 |
347,657 |
|
| Common shares and warrants issued for services rendered |
|
|
113,000 |
|
| Changes in operating assets and libilities, net of effects of acquisition: |
|
|
|
|
| Accounts receivable |
(140,344) |
(20,524) |
(327,524) |
468,424 |
| Accounts receivable, secured - related party |
|
|
|
7,376 |
| Prepaid expenses |
34,950 |
(22,372) |
(89,265) |
(97,474) |
| Other current assets |
69,000 |
|
(68,790) |
(210) |
| Other assets |
|
|
(18,622) |
|
| Accounts payable |
42,613 |
622,808 |
(186,701) |
390,628 |
| Accrued expenses |
21,468 |
125,867 |
252,771 |
(123,338) |
| Deferred rent |
6,889 |
(1,073) |
(4,291) |
(2,324) |
| Deferred revenue |
105,655 |
120,508 |
200,846 |
(36,555) |
| Other current liabilities |
(69,000) |
|
69,000 |
|
| Net cash used in operating activities |
(598,772) |
(908,769) |
(4,522,710) |
(1,679,330) |
| Cash flows from investing activities: |
|
|
|
|
| Cash acquired as part of merger |
|
337 |
337 |
3,200 |
| Purchases of property and equipment |
(139,108) |
(138,183) |
(479,846) |
(1,060,887) |
| Purchases of courseware |
|
(3,200) |
(25,300) |
(54,090) |
| Increase in restricted cash |
(139) |
(105,865) |
(264,992) |
|
| Advances to officer for note receivable |
|
|
|
(388,210) |
| Proceeds received from officer loan repayments |
|
150,000 |
150,000 |
238,210 |
| Net cash used in investing activities |
(139,247) |
(96,911) |
(619,801) |
(1,261,777) |
| Cash flows from financing activities: |
|
|
|
|
| Proceeds from (repayments on) line of credit, net |
250 |
(5,769) |
16,785 |
(10,284) |
| Proceeds from issuance of common shares and warrants, net |
519,370 |
|
3,025,236 |
|
| Principal payment on notes payable |
|
|
|
(30,871) |
| Proceeds received from issuance of convertible notes and warrants |
|
150,000 |
1,706,000 |
255,000 |
| Proceeds from related party for convertible notes |
|
300,000 |
600,000 |
73,000 |
| Disbursemenents for debt issuance costs |
|
|
(266,473) |
|
| Proceeds from issuance of Series A, D and E preferred stock |
|
|
|
3,469,985 |
| Payments for stockholder rescissions |
|
|
|
(165,000) |
| Proceeds from note payable |
|
|
22,000 |
|
| Disbursements to purchase treasury shares |
|
|
(202,000) |
(761,200) |
| Net cash provided by financing activities |
519,620 |
444,231 |
4,901,548 |
2,830,630 |
| Cash flows from discontinued operations: |
|
|
|
|
| Cash flows from operating activities |
120,505 |
41,372 |
51,599 |
582,241 |
| Net cash provided by discontinued operations |
120,505 |
41,372 |
51,599 |
582,241 |
| Net increase (decrease) in cash and cash equivalents |
(97,894) |
(520,077) |
(189,364) |
471,764 |
| Cash and cash equivalents at beginning of year |
577,238 |
766,602 |
766,602 |
294,838 |
| Cash and cash equivalents at end of year |
479,344 |
246,525 |
577,238 |
766,602 |
| Supplemental disclosure of cash flow information: |
|
|
|
|
| Cash paid for interest |
1,284 |
2,431 |
273,718 |
34,804 |
| Cash paid for income taxes |
|
|
|
|
| Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
|
| Conversion of all preferred shares into common shares |
|
3,469,985 |
3,469,985 |
|
| Conversion of convertible notes payable into common shares |
|
|
1,775,825 |
|
| Issuance of stock options to officers to settle accrued payroll |
|
|
238,562 |
|
| Conversion of loans payable to convertible notes payable |
|
200,000 |
200,000 |
|
| Issuance of common shares and warrants to settle accrued interest |
|
|
70,654 |
|
| Issuance of stock options to officers to settle note payable |
|
|
22,000 |
|
| Liabilities assumed in recapitalization |
|
21,206 |
21,206 |
|
| Settlement of notes payable by disposal of property and equipment |
|
15,151 |
15,151 |
|
| Issuance of convertible notes payable to pay accounts payable |
|
|
11,650 |
|
| Conversion of convertible notes payable into Preferred Series B shares |
|
|
|
$ 350,000 |