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, 2017
Mar. 31, 2016
Cash flows from operating activities:    
Net loss $ (3,101,581) $ (1,439,638)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 835,830 867,010
Deferred tax (654,755) (458,224)
Stock-based compensation expense 515,511 57,184
Provision for bad debt 145,891
Amortization of prepaid license fees 56,250
Amortization of customer deposits (56,250)
Changes in operating assets and liabilities:    
Accounts receivable (637,117) 743,108
Prepaid expenses and other current assets 290,097 (57,284)
Incremental direct costs 4,228 142,372
Accounts payable (981,376) (152,666)
Accrued expenses 297,457 789,639
Deferred revenue (54,282) (882,111)
Deferred rent (1,443) 3,794
Other liabilities (14,208) (58,071)
Net cash used in operating activities (3,355,748) (444,887)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 250,000
Costs incurred to develop technology (10,692)
Purchases of property and equipment (41,563)
Security deposit 45,379 (9,439)
Net cash (used in) provided by investing activities (6,876) 240,561
Cash flows from financing activities:    
Proceeds from the sale of common stock 3,000,000
Payment of offering costs (144,000)
Merchant reserve (165,841)
Net cash provided by (used in) financing activities 2,856,000 (165,841)
Effect of exchange rate fluctuations on cash and cash equivalents (112)
Net decrease in cash and cash equivalents (506,736) (370,167)
Cash and cash equivalents, beginning of period 6,068,973 2,070,693
Cash and cash equivalents, end of period 5,562,237 1,700,526
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes 300 4,605
Cash paid for interest