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 $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash Flows from Operating Activities:    
Net loss $ (778,208) $ (411,846)
Adjustments to reconcile net loss from operations to cash provided by (used in) operating activities:    
Stock based compensation expense 2,024 2,023
Depreciation 6,241 3,698
Amortization 60,420 60,420
Provision for doubtful accounts 3,675 (927)
Deferred income taxes 51,312 0
Changes in assets and liabilities:    
Accounts receivable 275,616 1,329,423
Inventories 51,770 (388,787)
Prepaid expenses 21,617 68,935
Accounts payable (335,129) (182,262)
Accrued liabilities & expenses (167,138) (117,461)
Deferred revenue 452,246 116,335
Customer deposits 264,897 (8,325)
Deferred lease liability 14,871 (114)
Net Cash (Used In) Provided By Operating Activities (75,786) 471,112
Cash Flows From Investing Activities:    
Purchase of property and equipment (120,667) (14,725)
Change in restricted cash 382,000 (382,000)
Net Cash Provided By (Used In) Investing Activities 261,333 (396,725)
Cash Flows From Financing Activities:    
Payments on note payable (65,199) (12,279)
Proceeds from borrowings on revolving credit facility 201,275 0
Net Cash Provided By (Used In) Financing Activities 136,076 (12,279)
Net increase in cash and cash equivalents 321,623 62,108
Cash and cash equivalents at the beginning of the period 572,672 1,163,758
Cash and cash equivalents at the end of the period 894,295 1,225,866
Supplemental Disclosures of Cash Flow Information:    
Cash paid during the period for interest expense 11,399 1,365
Non-cash transactions:    
Accretion of discount on redeemable preferred stock 24,528 105,996
Accretion of dividends on redeemable preferred stock $ 23,683 $ 66,901