Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:    
Net income $ 671,000 $ 2,737,000
Less: loss on discontinued operations (Note 9) (421,000) (412,000)
Income from continuing operations, net of taxes 1,092,000 3,149,000
Adjustments to reconcile net income from continuing operations to cash (used in) provided by operating activities:    
Depreciation and amortization 1,687,000 1,596,000
Interest on finance lease with purchase option 7,000 9,000
Loss on deconsolidation of subsidiary (Note 14) 1,062,000
(Gain) loss on extinguishment of debt (Note 10) (5,381,000) 27,000
Amortization of debt issuance/debt discount costs 40,000 294,000
Deferred tax benefit (3,860,000) (119,000)
Provision for (recovery of) bad debt reserves 26,000 (101,000)
Loss on disposal of property and equipment 2,000 29,000
Issuance of common stock for services 427,000 232,000
Stock-based compensation 250,000 236,000
Changes in operating assets and liabilities of continuing operations:    
Accounts receivable (1,739,000) 3,620,000
Unbilled receivables 5,458,000 (6,469,000)
Prepaid expenses, inventories and other assets 1,165,000 1,147,000
Accounts payable, accrued expenses and unearned revenue (6,552,000) 4,217,000
Cash (used in) provided by continuing operations (6,316,000) 7,867,000
Cash used in discontinued operations (521,000) (499,000)
Cash (used in) provided by operating activities (6,837,000) 7,368,000
Cash flows from investing activities:    
Purchases of property and equipment (net) [1] (1,577,000) (1,715,000)
Proceeds from sale of property and equipment 17,000 4,000
Deconsolidation of subsidiary - cash (4,000)
Cash used in investing activities of continuing operations (1,564,000) (1,711,000)
Cash provided by investing activities of discontinued operations 118,000
Cash used in investing activities (1,564,000) (1,593,000)
Cash flows from financing activities:    
Borrowing on revolving credit 74,987,000 102,788,000
Repayments of revolving credit borrowings (74,987,000) (103,109,000)
Proceeds from issuance of long-term debt 5,666,000
Principal repayment of finance lease liabilities (334,000) (615,000)
Principal repayments of long term debt (440,000) (2,759,000)
Payment of debt issuance costs (48,000) (85,000)
Proceeds from sale of Common Stock, net of offering costs paid (Note 7) 5,765,000
Proceeds from issuance of Common Stock upon exercise of options 6,000
Cash provided by financing activities of continuing operations 4,943,000 1,892,000
Effect of exchange rate changes on cash (1,000) 6,000
(Decrease) increase in cash and finite risk sinking fund (restricted cash) (Note 2) (3,459,000) 7,673,000
Cash and finite risk sinking fund (restricted cash) at beginning of period (Note 2) 19,370,000 11,697,000
Cash and finite risk sinking fund (restricted cash) at end of period (Note 2) 15,911,000 19,370,000
Supplemental disclosure:    
Interest paid 230,000 366,000
Income taxes paid 47,000 70,000
Non-cash investing and financing activities:    
Equipment purchase subject to finance lease 556,000 856,000
Equipment purchase subject to financing $ 29,000 $ 27,000
[1] Net of financed amount of $585,000 and $883,000 for the year ended December 31, 2021 and 2020, respectively.