Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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 $ (3,838,522) $ (885,807)
Adjustments to reconcile net loss to cash flows used in operating activities:    
Depreciation and amortization 135,514 1,988
Amortization of debt discount 134,607 26,544
Provision for doubtful accounts 720,805 380,030
Non cash interest    20,770
Gain on settlement of debt (25,100)   
Stock Based Compensation 897,400 259,148
Common stock issued in settlement of interest    11,820
Loss on change of fair value of derivative liability 1,051,254 1,269
Changes in operating assets and liabilities:    
Accounts receivable 50,168 (925,813)
Accounts receivable-other (15,000)   
Prepaid expenses 11,685 (20,122)
Accounts payable and accrued expenses 505,582 (16,157)
Income taxes payable (1,600) 1,600
Due to factor (154,990) (45,966)
Deferred revenue 631,655 262,938
Net cash provided by (used in) operating activities 103,458 (927,758)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Acquisition and cancelation of treasury shares    (75,000)
Payment of acquisition deposit (25,000)   
Payment of long term deposits (3,056)   
Purchase of equipment (6,665) (820)
Net cash used in investing activities (34,721) (75,820)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from notes payable 328,480 112,000
Proceeds from convertible notes payable    58,000
Proceeds from lender advances    885,000
Repayments of lender advances (4,401)   
Repayments of convertible notes payable (58,000)   
Repayments of notes payable (174,999)   
Net Repayments of notes payable, related party (57,253) (47,077)
Net cash provided by financing activities 33,827 1,007,923
Net increase (decrease) in cash 102,564 4,345
Cash, beginning of the period 6,002 1,657
Cash, end of period 108,566 6,002
Supplemental disclosures of cash flow information:    
Interest paid 119,648   
Taxes paid    1,600
Non-cash financing activities:    
Common stock issued in settlement of notes payable    37,100
Common stock issued in legal settlement 3,000   
Common stock issued for exercise of options paid by amounts due to the option holders $ 135,000