|
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
|
9 Months Ended |
|
Sep. 30, 2012
|
Sep. 30, 2011
|
| Cash Flows From Operating Activities |
|
|
| Net loss |
$ (460,060) |
$ (994,710) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
| Depreciation and amortization |
883,606 |
896,686 |
| Stock based compensation |
66,665 |
224,117 |
| Provision for Doubtful Accounts |
10,000 |
256,756 |
| Changes in operating assets and liabilities: |
|
|
| Accounts receivable |
114,894 |
(92,442) |
| Inventories |
(26,601) |
(64,904) |
| Prepaid expenses and other assets |
2,436 |
(1,012) |
| Accounts payable |
(208,490) |
32,620 |
| Accrued expenses |
(250,526) |
37,015 |
| Deferred revenues |
(1,825) |
(5,013) |
| Accrued interest payable |
146,530 |
589,567 |
| Net cash provided by operating activities |
276,629 |
878,680 |
| Cash Flows From Investing Activities |
|
|
| Purchases of leasehold improvements and equipment |
(875,305) |
(620,182) |
| Capitalization of software development costs |
|
(163,850) |
| Net cash used in investing activities |
(875,305) |
(784,032) |
| Cash Flows From Financing Activities |
|
|
| Principal proceeds from notes |
|
50,000 |
| Principal proceeds from long-term debt |
990,000 |
750,000 |
| Proceeds from revolving line of credit, net |
|
575,000 |
| Principal payments on long-term debt |
(610,863) |
(1,092,476) |
| Payments in connection with Series D Preferred Stock and debt conversion agreement |
(11,664) |
(10,000) |
| Net cash provided by financing activities |
367,473 |
272,524 |
| Increase (decrease) in cash |
(231,203) |
367,172 |
| Cash and cash equivalents at beginning of period |
505,500 |
88,956 |
| Cash and cash equivalents at end of period |
274,297 |
456,128 |
| Issuance of 1,331,814 of Series D Preferred Stock in connection with: |
|
|
| Conversion of long-term debt pursuant to debt conversion agreement dated June 30, 2011 |
|
14,108,972 |
| Accrued interest payable on related long-term debt converted |
|
540,178 |
| Issuance of 156,066 of Series D Preferred Stock in connection with: |
|
|
| Conversion of long-term debt pursuant to debt conversion agreement dated September 28, 2012 |
1,475,000 |
|
| Accrued interest payable on related long-term debt converted, including $97,111 of Accrued Interest included in long-term debt at December 31, 2011 |
241,722 |
|
| Equipment purchases included in accounts payable |
$ 27,567 |
|