XML 33 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net loss $ (2,139,704) $ (1,985,493)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 26,465 28,420
Bad debt expense 21,488 9,314
Amortization of deferred financing costs 8,314 9,165
Amortization of beneficial conversion option 2,387 20,865
Amortization of original issue discount 1,206 9,906
Loss (Gain) on derivative (15,470) 15,470
Stock-based compensation 0 175,000
Stock issued for services 0 65,550
Changes in operating assets and liabilities:    
Accounts receivable 166,854 (6,274)
Prepaid expenses and other current assets 784 (21,628)
Accounts payable and accrued expenses (354,249) 757,927
Other long-term liabilities - related parties (37,419) 47,956
Deferred interest expense 42,502 24,377
Deferred revenues (88,840) (392,775)
Deferred compensation (94,728) 94,729
Total adjustments (320,706) 838,002
Net cash used in operating activities (2,460,410) (1,147,491)
Cash flows from investing activities:    
Repayment of equity receivable 0 5,600
Purchases of property and equipment (21,562) (53,779)
Net cash used in investing activities (21,562) (48,179)
Cash flows from financing activities:    
Proceeds from notes payable 320,000 859,056
Proceeds from notes payable - related parties 0 434,000
Repayment of notes payable (208,225) (251,421)
Repayment of notes payable - related parties (146,500) 0
Sale of Common Stock 2,731,021 60,000
Net cash provided by financing activities 2,696,296 1,101,635
Net increase (decrease) in cash 214,324 (94,035)
Cash - beginning of period 46,236 140,271
Cash - end of period 260,560 46,236
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest and taxes 138,070 101,113
Supplemental disclosure of non-cash financing activities:    
Accounts payable and accrued interest converted to equity 286,370 137,520
Notes payable converted to equity 469,500 562,056
Notes payable - related party converted to equity 95,000 382,292
Total non-cash financing activities $ 850,870 $ 1,081,868