|
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
|
6 Months Ended |
|
Jun. 30, 2011
|
Jun. 30, 2010
|
| Cash Flows From Operating Activities |
 |
 |
| Net loss |
$ (1,114,796) |
$ (620,579) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
 |
 |
| Depreciation and amortization |
613,508 |
678,803 |
| Stock based compensation |
154,219 |
81,442 |
| Provision for Doubtful Accounts |
256,756 |
 |
| Changes in operating assets and liabilities: |
 |
 |
| Accounts receivable |
(202,815) |
(2,426) |
| Inventories |
(48,361) |
65,005 |
| Prepaid expenses and other assets |
27,092 |
(582) |
| Accounts payable |
45,869 |
(48,932) |
| Accrued expenses |
114,854 |
(685,542) |
| Deferred revenues |
(14,264) |
(23,985) |
| Accrued interest payable |
575,162 |
419,725 |
| Net cash provided by (used in) operating activities |
407,224 |
(137,071) |
| Cash Flows From Investing Activities |
 |
 |
| Purchases of leasehold improvements and equipment |
(468,706) |
(29,368) |
| Capitalization of software development costs |
(138,570) |
(150,778) |
| Net cash used in investing activities |
(607,276) |
(180,146) |
| Cash Flows From Financing Activities |
 |
 |
| Principal proceeds from long-term debt |
500,000 |
 |
| Proceeds from revolving line of credit |
575,000 |
150,000 |
| Proceeds from equipment term loan |
 |
618,805 |
| Principal payments on long-term debt |
(782,679) |
(854,685) |
| Payments in connection with Series D Preferred Stock and debt conversion agreement |
(10,000) |
 |
| Proceeds from the exercise of options and warrants |
 |
18,739 |
| Net cash provided by (used in) financing activities |
282,321 |
(67,141) |
| Increase (decrease) in cash |
82,269 |
(384,358) |
| Cash at beginning of period |
88,956 |
719,662 |
| Cash at end of period |
171,225 |
335,304 |
| 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 |
 |
| Accounts payable and accrued expenses in connection with debt conversion agreement dated June 30, 2011 |
$ 73,960 |
 |