|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
|
12 Months Ended |
|
Dec. 31, 2011
|
Dec. 31, 2010
|
| Cash Flows From Operating Activities |
|
|
| Net loss |
$ (1,206,690) |
$ (1,007,433) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
| Depreciation and amortization |
1,181,958 |
1,199,750 |
| Stock based compensation |
274,878 |
191,080 |
| Provision for Doubtful Accounts |
256,756 |
|
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
32,214 |
160,095 |
| Inventories |
(101,290) |
61,209 |
| Prepaid expenses and other assets |
84,394 |
(41,915) |
| Accounts payable |
331,702 |
(105,178) |
| Accrued expenses |
257,875 |
(879,657) |
| Deferred revenues |
(7,960) |
(25,913) |
| Accrued interest payable |
637,290 |
766,832 |
| Net cash provided by operating activities |
1,741,127 |
318,870 |
| Cash Flows From Investing Activities |
|
|
| Purchases of leasehold improvements and equipment |
(1,066,809) |
(193,743) |
| Capitalization of software development costs |
(202,170) |
(263,902) |
| Net cash used in investing activities |
(1,268,979) |
(457,645) |
| Cash Flows From Financing Activities |
|
|
| Principal proceeds from long-term debt |
750,000 |
360,000 |
| Proceeds from revolving line of credit, net |
575,000 |
292,886 |
| Proceeds from equipment term loan |
|
538,000 |
| Principal payments on long-term debt |
(1,370,604) |
(1,723,142) |
| Payments in connection with Series D Preferred Stock and debt conversion agreement |
(10,000) |
|
| Proceeds from the exercise of options and warrants |
|
40,325 |
| Net cash used in financing activities |
(55,604) |
(491,931) |
| Increase (decrease) in cash |
416,544 |
(630,706) |
| Cash at beginning of period |
88,956 |
719,662 |
| Cash at end of period |
505,500 |
88,956 |
| Issuance of 1,331,814 of Series D Preferred Stock in connection with: |
|
|
| Conversion of long-term debt pursuant to debt conversion agreeement dated June 30, 2011 |
14,108,972 |
|
| Accrued interest payable on related long-term debt converted |
540,178 |
|
| Equipment purchases included in Accounts payable amounts above |
$ 448,951 |
$ 9,800 |