Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net loss $ (1,778,400) $ (1,756,500)
Income from discontinued operations 41,000 478,300
Net loss from continuing operations (1,819,400) (2,234,800) [1]
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization [2] 281,800 408,700 [1]
Stock-based compensation expense 59,500 56,800
Stock issued for services 71,000  
Non-cash expense for interest, common stock issued for debt penalty 780,800 820,000
Amortization of note discount (19,800)  
Non-cash expense for interest, warrants - accretion of debt discount 4,000 4,000
Non-cash expense for extension of warrants   83,600
Changes in operating assets and liabilities:    
Accounts receivable (570,200) 446,100
Costs in Excess of billings on uncompleted contracts   (98,700)
Prepaid expenses and other assets 170,700 281,400
Accounts payable and accrued liabilities 610,200 644,600
Revenue contract liabilities 322,800 (840,400)
Deferred revenue (212,400) (94,200)
Payroll taxes payable 24,200 (7,000)
Net cash used by operating activities (296,800) (529,900)
Cash flows from investing activities:    
Purchase of property and equipment   (61,700)
Proceeds (purchase) of intangibles (100) 2,400
Proceeds from notes receivable 224,000  
Net cash provided by (used in) investing activities 223,900 (59,300)
Cash flows from financing activities:    
Payments of notes and capital lease obligations (273,600) (557,000)
Proceeds from short-term notes 350,000 450,000
Proceeds from warrant extensions   138,600
Proceeds from the sale of common stock and warrants, net of expenses 120,000  
Net cash provided by financing activities 196,400 31,600
Net cash flows from discontinued operations 41,000 611,700
Net increase in cash 164,500 54,100
Cash at the beginning of period 54,100 [3] 233,200
Cash at the end of period 218,600 287,300
Supplemental disclosures of cash flow information:    
Cash paid for interest 41,900 53,300
Financing of prepaid insurance premiums $ 148,200 $ 175,300
[1] Excludes discontinued operations.
[2] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles.
[3] These numbers were derived from the audited financial statements for the year ended December 31, 2017.