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 ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash Flows From Operating Activities:    
Net income (loss) $ 48,853 $ (176,373)
Adjustments to reconcile net income (loss) from operations to net cash (used in) provided by operating activities:    
Stock-based compensation expense 10,983 10,843
Amortization of deferred financing costs 14,211 0
Depreciation 24,255 24,451
Amortization 181,260 181,260
Provision for doubtful accounts, net of recoveries 583 (92,929)
Deferred income taxes 153,936 153,936
Changes in assets and liabilities:    
Accounts receivable (923,166) 402,631
Inventories 128,896 (19,588)
Prepaid expenses and other current assets (181,346) 76,220
Deposits and other long term assets 238 0
Accounts payable 129,860 90,925
Accrued liabilities and expenses 186,236 (557,376)
Deferred revenue 29,842 36,667
Customer deposits (215,183) 224,205
Deferred lease liability (14,339) 13,426
Net Cash (Used In) Provided By Operating Activities (424,881) 368,298
Cash Flows From Investing Activities:    
Purchase of property and equipment (6,345) (120,667)
Change in restricted cash 31,733 319,000
Net Cash Provided By Investing Activities 25,388 198,333
Cash Flows From Financing Activities:    
Payments on notes payable (228,943) (198,729)
Proceeds from exercise of warrants 262,500 0
Net proceeds from line of credit 333,567 0
Net Cash Provided By (Used In) Financing Activities 367,124 (198,729)
Net (decrease) increase in cash and cash equivalents (32,369) 367,902
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 1,095,703 940,574
Cash paid during the period for interest 39,892 25,661
Non-cash transactions:    
Accretion of discount on redeemable preferred stock 0 73,584
Accretion of dividends on redeemable preferred stock $ 47,628 $ 71,839