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 $)
 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net loss $ (426,000) $ (1,296,400)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Provision for doubtful accounts receivable 24,500 101,600
Depreciation and amortization 275,900 [1] 247,100 [1]
Stock-based compensation expense 87,600 581,100
Amortization of debt discount 2,000 99,900
Gains on extinguishment of debt (8,500) (305,800)
Changes in operating assets and liabilities:    
Cash - restricted 195,800 (312,400)
Accounts receivable (316,300) (850,900)
Costs in Excess of billings on uncompleted contracts (38,100) 107,200
Inventory and Inventory held for sale (135,500) (40,600)
Prepaid expenses and other assets (104,400) (55,100)
Accounts payable 340,700 70,600
Accrued liabilities and related party notes payable accrued interest 111,400 181,400
Billings in excess of revenue on uncompleted contracts (130,000) 194,400
Payroll taxes payable (107,900) (42,200)
Net cash used in operating activities (228,800) (1,320,100)
Cash flows from investing activities:    
Purchase of property and equipment (355,800) (66,200)
Proceeds the sale of property and equipment (13,400)   
Net cash used in investing activities (369,200) (66,200)
Cash flows from financing activities:    
Proceeds from notes payable and related party notes payable 50,000 575,000
Payments of notes payments and capital lease obligations (100,300) (235,200)
Payments of related party notes payable and accrued interest (3,400) (54,000)
Proceeds from subscription receivable 100,000   
Proceeds from the sale of common stock and warrants, net of expenses 785,300 1,090,000
Net cash provided by financing activities 831,600 1,375,800
Net increase (decrease) in cash 233,600 (10,500)
Cash at the beginning of period 70,400 [2] 81,100
Cash at the end of period 304,000 70,600
Supplemental disclosures of cash flow information:    
Cash paid for interest 65,000 144,000
Conversion of accounts payable and accrued expenses to notes payable    66,900
Discount on note payable (4,900) (99,900)
Purchase of assets under capital leases    121,300
Purchase of assets through note payable $ 110,000   
[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, 2012.