|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
|
12 Months Ended |
|
Dec. 31, 2014
|
Dec. 31, 2013
|
| Cash flows from operating activities: |
|
|
| Net loss |
$ (1,692,658) |
$ (626,071) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
| Provision for bad debts |
300,000 |
460,000 |
| Loss (gain) from debt extinguishment |
56,078 |
(60,179) |
| Interest expense related to warrant amortization |
18,445 |
100,448 |
| Accretion of debt discount on long term debt |
48,199 |
113,358 |
| Stock based compensation |
351,610 |
516,666 |
| Depreciation and amortization expense |
40,909 |
22,000 |
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable, net |
853,257 |
(269,774) |
| Prepaid expenses and other assets |
56,425 |
8,703 |
| Due to related party |
(28,594) |
(33,616) |
| Accounts payable and accrued liabilities |
53,614 |
(47,390) |
| Net cash provided by operating activities |
57,285 |
184,145 |
| Cash flows from investing activities: |
|
|
| Purchase of equipment |
(51,083) |
(9,351) |
| Net cash used in investing activities |
(51,083) |
(9,351) |
| Cash flows from financing activities: |
|
|
| Repayments on long-term debt |
(700,000) |
(350,000) |
| Proceeds from draws on line of credit |
500,000 |
0 |
| Repayments on related party payable |
(135,699) |
(155,000) |
| Net cash used in financing activities |
(335,699) |
(505,000) |
| Net decrease in cash and cash equivalents |
(329,497) |
(330,206) |
| Cash and cash equivalents at beginning of period |
687,549 |
1,017,755 |
| Cash and cash equivalents at end of period |
358,052 |
687,549 |
| Supplementary disclosure of cash flow information: |
|
|
| Interest paid |
164,835 |
207,356 |
| Taxes paid |
0 |
0 |
| Supplementary disclosure of non-cash investing and financing activities: |
|
|
| Common stock issued to restructure debt |
180,000 |
0 |
| Common stock issued for prepaid services |
$ 112,500 |
$ 182,333 |