Quarterly report pursuant to sections 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, 2012
Mar. 31, 2011
Cash flows from operating activities:    
Net loss $ (1,626,221) $ (27,266)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Provision for bad debts 32,955 36,832
Gain on disposal of property and equipment (5,879) 0
Depreciation and amortization 89,749 52,446
Issuance of convertible notes in exchange for services rendered 0 21,000
Stock-based compensation 66,104 0
Changes in operating assets and liabilities, net of effects of acquisition:    
Accounts receivable (348,101) (15,749)
Accounts receivable, secured - related party 0 (6,000)
Prepaid expenses and other current assets (22,372) 2,255
Accounts payable 631,932 (1,796)
Accrued expenses 114,092 (69,656)
Deferred rent (1,073) (581)
Deferred revenue 201,417 45,455
Net cash (used in) provided by operating activities (867,397) 36,940
Cash flows from investing activities:    
Cash acquired as part of merger 337 0
Purchases of property and equipment 0 (59,168)
Purchases of intangible assets (141,383) (51,750)
Increase in restricted cash (105,865) 0
Proceeds received from officer loan repayments 150,000 0
Net cash provided by (used in) investing activities (96,911) (110,918)
Cash flows from financing activities:    
Proceeds from (repayments on) line of credit, net (5,769) (2,513)
Principal payments on notes payable 0 (1,422)
Proceeds received from issuance of convertible notes 450,000 126,000
Net cash provided by financing activities 444,231 122,065
Net (decrease) increase in cash and cash equivalents (520,077) 48,087
Cash and cash equivalents at beginning of period 766,602 294,838
Cash and cash equivalents at end of period 246,525 342,925
Supplemental disclosure of cash flow information:    
Cash paid for interest 2,431 10,252
Cash paid for income taxes 0 0
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of all preferred shares into common shares 3,469,985 0
Conversion of loans payable to convertible notes 200,000 0
Liabilities assumed in recapitalization 21,206 0
Settlement of notes payable by disposal of property and equipment $ 15,151 $ 0