Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash Flows from Operating Activities:    
Net (loss) income $ (189,104) $ 42,830
Adjustments to reconcile net (loss) income from operations to cash (used in) provided by operating activities:    
Stock-based compensation expense 14,383 15,046
Amortization of deferred financing costs 18,949 9,100
Depreciation 31,827 33,556
Amortization 241,680 241,680
Provision for doubtful accounts, net of recoveries 19,951 (76,910)
Deferred income taxes 199,386 199,386
Changes in assets and liabilities:    
Accounts receivable (822,876) 276,244
Inventories 215,198 (87,868)
Prepaid expenses and other current assets (62,218) 75,934
Deposits and other long term assets 237 0
Accounts payable 73,874 (162,897)
Accrued liabilities and expenses (207,984) (907,132)
Deferred revenue 171,211 9,463
Customer deposits (84,877) 317,312
Deferred lease liability (21,557) 9,655
Net Cash Used In Operating Activities (401,920) (4,601)
Cash Flows From Investing Activities:    
Purchase of property and equipment (42,081) (120,668)
Change in restricted cash 31,723 319,000
Net Cash (Used In) Provided By Investing Activities (10,358) 198,332
Cash Flows From Financing Activities:    
Payments on note payable (300,612) (266,535)
Proceeds from exercise of warrants 262,500 0
Net Proceeds from line of credit 273,567 628,204
Net Cash Provided By Financing Activities 235,455 361,669
Net (decrease) increase in cash and cash equivalents (176,823) 555,400
Cash and cash equivalents at the beginning of the year 1,128,072 572,672
Cash and cash equivalents at the end of the year 951,249 1,128,072
Cash transactions:    
Cash paid during the year for interest 54,428 39,014
Cash paid during the year for income taxes, net of refunds (10,431) 1,420
Non-cash transactions:    
Accretion of discount on redeemable preferred stock 0 90,149
Accretion of dividends on redeemable preferred stock $ 47,628 $ 96,051