Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash Flows from Operating Activities:    
Net loss $ (220,567) $ (559,123)
Adjustments to reconcile net loss from operations to net cash (used in) provided by operating activities:    
Stock-based compensation expense 7,593 6,641
Amortization of deferred financing costs 9,474 0
Depreciation 17,181 15,346
Amortization 120,840 120,840
Provision for doubtful accounts, net of recoveries 6,254 5,787
Deferred income taxes 102,624 102,624
Changes in assets and liabilities:    
Accounts receivable (663,321) 159,821
Inventories 90,125 68,573
Prepaid expenses and other current assets (51,637) 57,339
Deposits and other long term assets 238 0
Accounts payable 38,357 151,228
Accrued liabilities and expenses 137,716 (329,824)
Deferred revenue 45,890 177,197
Customer deposits (141,719) 464,463
Deferred lease liability (7,121) 17,197
Net Cash (Used In) Provided By Operating Activities (508,073) 458,109
Cash Flows From Investing Activities:    
Purchase of property and equipment (6,345) (120,667)
Change in restricted cash (550) 319,000
Net Cash (Used In) Provided By Investing Activities (6,895) 198,333
Cash Flows From Financing Activities:    
Payments on notes payable (158,109) (131,255)
Net proceeds from line of credit 406,652 0
Net Cash Provided By (Used In) Financing Activities 248,543 (131,255)
Net (decrease) increase in cash and cash equivalents (266,425) 525,187
Cash and cash equivalents at the beginning of the period 1,128,072 572,672
Cash and cash equivalents at the end of the period 861,647 1,097,859
Cash paid during the period for interest 37,719 19,297
Non-cash transactions:    
Accretion of discount on redeemable preferred stock 0 49,056
Accretion of dividends on redeemable preferred stock $ 47,628 $ 47,628