Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.4.0.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Cash flows from operating activities:    
Net loss $ (1,439,638) $ (1,542,878)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 867,010 934,923
Deferred tax benefit (458,224) (969,626)
Stock-based compensation expense 57,184 122,070
Amortization of prepaid license fees $ 56,250 56,250
Amortization of premium on short-term investments, net 42,638
Amortization of customer deposits $ (56,250) (56,250)
Change in fair value of warrant liability (20,290)
Accretion of debt discount 2,604
Changes in operating assets and liabilities:    
Accounts receivable $ 743,108 435,763
Prepaid expenses and other current assets (57,284) 64,739
Incremental direct costs 142,372 (137,704)
Accounts payable (152,666) (379,765)
Accrued expenses 789,639 654,838
Deferred revenue (882,111) 308,195
Deferred rent 3,794 $ 19,767
Other liabilities (58,071)
Net cash used in operating activities (444,887) $ (464,726)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments $ 250,000 2,879,000
Costs incurred to develop technology (62,587)
Purchases of property and equipment (26,403)
Security deposit $ (9,439) (4,850)
Net cash provided by investing activities 240,561 2,785,160
Cash flows from financing activities:    
Merchant reserve (165,841) (305,110)
Net cash used in financing activities (165,841) (305,110)
Net (decrease) increase in cash and cash equivalents (370,167) 2,015,324
Cash and cash equivalents, beginning of period 2,070,693 1,519,467
Cash and cash equivalents, end of period 1,700,526 3,534,791
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes $ 4,605 4,631
Non-cash disclosures:    
Working capital adjustment to note payable $ 31,804