Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (2,321,157) $ (750,704)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,805,196 184,554
Deferred tax benefit (1,466,822) (512,589)
Stock-based compensation expense 236,369 $ 25,696
Amortization of prepaid license fees 112,500  
Amortization of premium on short-term investments, net 70,644  
Amortization of customer deposits (112,500)  
Change in fair value of warrant liability (91,560) $ (13,532)
Accretion of debt discount 5,208  
Changes in operating assets and liabilities:    
Accounts receivable 636,698 $ 125,469
Prepaid expenses and other current assets (23,483) $ (232,788)
Incremental direct costs (197,403)  
Accounts payable (1,350,043) $ 83,620
Accrued expenses 153,375 71,777
Deferred revenue (312,776) $ (97,405)
Deferred rent 39,534  
Net cash used in operating activities (2,816,220) $ (1,115,902)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 4,957,000 3,100,000
Purchases of short-term investments (925,000) (14,976,078)
Costs incurred to develop technology (231,437) (97,918)
Purchases of property and equipment (64,154) $ (11,597)
Security deposit (4,850)  
Net cash provided by (used in) investing activities 3,731,559 $ (11,985,593)
Cash flows from financing activities:    
Proceeds from the sale of common stock 5,235,300  
Repayment of note payable (1,272,006)  
Payment of offering costs (653,427)  
Merchant reserve (400,000)  
Payments of capital leases $ (15,232)  
Repurchase of common stock   $ (25,862)
Net cash provided by (used in) financing activities $ 2,894,635 (25,862)
Net increase (decrease) in cash and cash equivalents 3,809,974 (13,127,357)
Cash and cash equivalents, beginning of year 1,519,467 18,736,495
Cash and cash equivalents, end of year 5,329,441 $ 5,609,138
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes $ 4,631  
Cash paid for interest    
Non-cash disclosures:    
Working capital adjustment to note payable $ 32,281  
Accrued expenses related to license fee   $ 450,000