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, 2015
Jun. 30, 2014
Cash flows from operating activities:    
Net loss $ (1,472,700) $ (736,500)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Provision for doubtful accounts receivable (17,200) (1,000)
Depreciation and amortization [1] 293,300 216,700
Stock-based compensation expense $ 148,600 685,400
Gain on extinguishment of debt   $ (24,400)
Changes in operating assets and liabilities:    
Cash - restricted $ 66,000  
Accounts receivable 1,435,500 $ (1,343,100)
Costs in excess of billings on uncompleted contracts (124,300) (94,700)
Prepaid expenses and other assets 176,400 (75,300)
Accounts payable and accrued liabilities (331,100) 615,600
Billings in excess of revenue on uncompleted contracts 157,900 179,000
Deferred revenue $ 376,500 419,500
Customer deposits   212,000
Payroll taxes payable $ 11,400 (28,200)
Net cash provided by operating activities 720,300 25,000
Cash flows from investing activities:    
Purchase of property and equipment (350,800) (2,305,000)
Purchase of intangibles (26,300) (53,900)
Net cash used in investing activities (377,100) (2,358,900)
Cash flows from financing activities:    
Payments of notes payments and capital lease obligations (242,800) (153,000)
Payments of related party notes payable and accrued interest $ (25,500) (10,000)
Proceeds from exercise of warrants   662,000
Proceeds from the sale of common stock and warrants, net of expenses   776,000
Net cash provided by (used in) financing activities $ (268,300) 1,275,000
Net increase (decrease) in cash 74,900 (1,058,900)
Cash at the beginning of period 229,200 [2] 2,419,100
Cash at the end of period 304,100 1,360,200
Supplemental disclosures of cash flow information:    
Cash paid for interest 46,600 $ 74,400
Conversion of debt and accrued interest to equity 257,400  
Financing of prepaid insurance premiums 273,900  
Capital lease additions $ 214,400  
[1] Includes depreciation of property, equipment and leasehold improvement and amortization of intangibles
[2] These numbers were derived from the audited financial statements for the year ended December 31, 2014. See accompanying notes