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, 2014
Sep. 30, 2013
Cash Flows from Operating Activities:    
Net loss $ (176,373) $ (1,513,834)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Gain on sale of product line 0 (41,902)
Stock-based compensation expense 10,843 87,542
Depreciation 24,451 12,318
Amortization 181,260 181,260
Provision for doubtful accounts (92,929) 61,606
Deferred income taxes 153,936 292,953
Changes in assets and liabilities:    
Accounts receivable 402,631 1,195,996
Inventories (19,588) (206,931)
Prepaid expenses 76,220 101,389
Accounts payable 90,925 (288,463)
Accrued liabilities and expenses (557,376) (159,940)
Deferred revenue 36,667 89,834
Customer deposits 224,205 347,935
Deferred lease liability 13,426 (1,618)
Net Cash Provided By Operating Activities 368,298 158,145
Cash Flows From Investing Activities:    
Purchase of property and equipment (120,667) (18,633)
Change in restricted cash 319,000 (382,000)
Net Cash Provided By (Used In) Investing Activities 198,333 (400,633)
Cash Flows From Financing Activities:    
Payments on note payable (198,729) (121,797)
Net Cash Used In Financing Activities (198,729) (121,797)
Net increase (decrease) in cash and cash equivalents 367,902 (364,285)
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 940,574 799,473
Supplemental Disclosures of Cash Flow Information:    
Cash paid during the period for interest 25,661 20,622
Non-cash transactions:    
Accretion of discount on redeemable preferred stock 73,584 680,643
Accretion of dividends on redeemable preferred stock 71,839 176,594
Conversion of preferred stock to common stock $ 0 $ 2,681,878