XML 49 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
Condensed Statements of Cash Flows (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Operating activities    
Net income $ 21,390 $ 118,311
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Stock-based compensation 115,794 151,292
Depreciation and amortization 153,120 132,732
Deferred income tax expense 15,970 15,970
Loss on extinguishment of debt 61,500   
Changes in operating assets and liabilities:    
Accounts receivable (776,326) (960,480)
Inventories 377,332 (91,099)
Prepaid expenses and other current assets (111,983) 9,977
Accounts payable 208,170 (58,570)
Accrued payroll and related expenses (1,065) 82,897
Deferred income on shipments to distributors 44,768 170,116
Deferred service revenue (5,999) (49,054)
Change in deferred rent 21,059 28,187
Net cash provided by (used in) operating activities 123,730 (449,721)
Investing activities    
Purchases of equipment (61,900) (41,860)
Net cash used in investing activities (61,900) (41,860)
Financing activities    
Payments on capital leases (11,201) (9,656)
Proceeds from borrowings under bank line of credit agreement 1,695,778 4,422,333
Repayments of borrowings under bank line of credit agreement (1,644,690) (4,087,966)
Stock options exercised 6,993 6,480
Warrants exercised 12,500   
Proceeds from the issuance of related party and other short term notes payable    550,000
Repayment of short term note payable    (95,289)
Redemption of related party convertible note payable (25,000) (25,000)
Net cash provided by financing activities 34,380 760,902
Net increase in cash and cash equivalents 96,210 269,321
Cash and cash equivalents at beginning of period 606,255 390,513
Cash and cash equivalents at end of period 702,465 659,834
Supplemental cash flow information    
Cash paid for interest $ 190,063 $ 163,998