Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Cash flows from operating activities:    
Net income $ 1,841,000 $ 1,369,000
Less: loss from discontinued operations, net of taxes of $0 (242,000) (199,000)
Income from continuing operations, net of taxes 2,083,000 1,568,000
Adjustments to reconcile income from continuing operations to cash provided by operating activities:    
Depreciation and amortization 799,000 711,000
Interest on finance lease with purchase option 4,000 4,000
(Gain) loss on extinguishment of debt (5,381,000) 27,000
Amortization of debt discount/debt issuance costs 17,000 129,000
Deferred tax expense 3,000 5,000
Recovery of bad debt reserves (17,000) (107,000)
Loss on disposal of property and equipment 27,000
Issuance of common stock for services 188,000 104,000
Stock-based compensation 87,000 92,000
Changes in operating assets and liabilities of continuing operations    
Accounts receivable 432,000 2,479,000
Unbilled receivables 7,121,000 (3,085,000)
Prepaid expenses, inventories and other assets 1,076,000 714,000
Accounts payable, accrued expenses and unearned revenue (5,609,000) 289,000
Cash provided by continuing operations 803,000 2,957,000
Cash used in discontinued operations (315,000) (259,000)
Cash provided by operating activities 488,000 2,698,000
Cash flows from investing activities:    
Purchases of property and equipment (650,000) [1] (1,366,000) [2]
Proceeds from sale of property and equipment 1,000 4,000
Cash used in investing activities of continuing operations (649,000) (1,362,000)
Cash provided by investing activities of dicontinued operations 13,000
Cash used in investing activities (649,000) (1,349,000)
Cash flows from financing activities:    
Repayments of revolving credit borrowings (41,834,000) (47,058,000)
Borrowing on revolving credit 41,834,000 46,737,000
Proceeds from issuance of long-term debt 5,666,000
Principal repayments of finance lease liabilities (205,000) (229,000)
Principal repayments of long term debt (219,000) (1,045,000)
Payment of debt issuance costs (15,000) (85,000)
Proceeds from issuance of common stock upon exercise of options 6,000
Cash (used in) provided by financing activities of continuing operations (439,000) 3,992,000
Effect of exchange rate changes on cash 9,000 (18,000)
(Decrease) increase in cash and finite risk sinking fund (restricted cash) (591,000) 5,323,000
Cash and finite risk sinking fund (restricted cash) at beginning of period 19,370,000 11,697,000
Cash and finite risk sinking fund (restricted cash) at end of period 18,779,000 17,020,000
Supplemental disclosure:    
Interest paid 106,000 207,000
Income taxes paid 15,000 30,000
Non-cash financing activities:    
Equipment purchase subject to finance lease 132,000
Equipment purchase subject to finance $ 29,000
[1] Net of financed amount of $0 and $29,000 for the three and six months ended June 30, 2021, respectively.
[2] Net of financed amount of $51,000 and $132,000 for the three and six months ended June 30, 2020, respectively.