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, 2016
Jun. 30, 2015
Cash flows from operating activities:    
Net loss $ (2,245,907) $ (2,321,157)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,678,242 1,805,196
Deferred tax benefit (594,393) (1,466,822)
Gain on lease cancellation (423,998)
Stock-based compensation expense 99,830 236,369
Amortization of prepaid license fees 112,500 112,500
Amortization of premium on short-term investments, net 70,644
Amortization of customer deposits (112,500) (112,500)
Change in fair value of warrant liability (91,560)
Accretion of debt discount 5,208
Changes in operating assets and liabilities:    
Accounts receivable 737,670 636,698
Prepaid expenses and other current assets 105,840 (23,483)
Incremental direct costs 304,169 (197,403)
Accounts payable (163,944) (1,350,043)
Accrued expenses 587,400 153,375
Deferred revenue (2,384,908) (312,776)
Deferred rent 7,585 39,534
Other liabilities 59,306
Net cash used in operating activities (2,233,108) (2,816,220)
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 500,000 4,957,000
Purchases of short-term investments (925,000)
Costs incurred to develop technology (231,437)
Purchases of property and equipment (64,154)
Security deposit 6,716 (4,850)
Net cash provided by investing activities 506,716 3,731,559
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)
Proceeds from line of credit 1,572,576
Payment of deferred financing costs (458,555)
Merchant reserve (166,078) (400,000)
Payments of capital leases (15,232)
Net cash provided by financing activities 947,943 2,894,635
Net (decrease) increase in cash and cash equivalents (778,449) 3,809,974
Cash and cash equivalents, beginning of period 2,070,693 1,519,467
Cash and cash equivalents, end of period 1,292,244 5,329,441
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 32,281
Issuance of warrants in connection with Master Credit Facility $ 783,458