Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v2.4.0.6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash Flows from Operating Activities:    
Net loss $ (411,846) $ (728,824)
Adjustments to reconcile net income (loss) from operations to cash (used in) provided by operating activities:    
Stock based compensation expense 2,023 36,165
Depreciation 3,698 12,178
Amortization 60,420 60,420
Provision for doubtful accounts (927) 796
Increase / decrease in:    
Accounts receivable 1,329,423 462,401
Inventories (388,787) (553,801)
Prepaid expenses 68,935 112,301
Accounts payable (182,262) 95,422
Accrued liabilities & expenses (117,461) 93,872
Deferred revenue 116,335 (17,506)
Customer deposits (8,325) 25,777
Deferred lease liability (114) 6,224
Net Cash Provided by (Used In) Operating Activities 471,112 (394,575)
Cash Flows From Investing Activities:    
Purchase of property and equipment (14,725) (3,995)
Deposit of restricted cash (382,000)   
Net Cash Used In Investing Activities (396,725) (3,995)
Cash Flows From Financing Activities:    
Payments on note payable (12,279) (24,783)
Net Cash Used In Financing Activities (12,279) (24,783)
Net increase (decrease) in cash and cash equivalents 62,108 (423,353)
Cash and cash equivalents at the beginning of the period 1,163,758 961,091
Cash and cash equivalents at the end of the period 1,225,866 537,738
Cash transactions:    
Cash paid during the period for interest expense 1,365 1,745
Non-cash transactions:    
Accretion of discount on redeemable preferred stock 105,996 123,111
Accretion of dividends on redeemable preferred stock $ 66,901 $ 67,642