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, 2014
Jun. 30, 2013
Cash flows from operating activities:    
Net loss $ (3,958,000) $ (3,853,000)
Less: income on discontinued operations 2,105,000 15,000
Loss from continuing operations (6,063,000) (3,868,000)
Depreciation and amortization 2,309,000 2,576,000
Amortization of debt discount 43,000  
Amortization of fair value of customer contracts   (1,043,000)
Deferred tax expense (benefit) 60,000 (1,636,000)
(Benefit) provision for bad debt and other reserves (6,000) 43,000
Impairment loss on goodwill 380,000 1,149,000
(Gain) loss on disposal of plant, property and equipment (16,000) 2,000
Foreign exchange loss (6,000) (2,000)
Issuance of common stock for services 129,000 99,000
Stock-based compensation (17,000) 54,000
Accounts receivable (2,654,000) 60,000
Unbilled receivables 793,000 1,482,000
Prepaid expenses, inventories and other assets 966,000 1,078,000
Accounts payable, accrued expenses and unearned revenue (247,000) (3,603,000)
Cash used in continuing operations (4,329,000) (3,609,000)
Cash used in discontinued operations (1,527,000) (167,000)
Cash used in operating activities (5,856,000) (3,776,000)
Cash flows from investing activities:    
Purchases of property and equipment (333,000) (175,000)
Proceeds from sale of property and equipment 42,000  
Non-controlling distribution/redemption   (508,000)
Payment to finite risk sinking fund (14,000) (18,000)
Cash used in investing activities of continuing operations (305,000) (701,000)
Proceeds from property insurance claims of discontinued operations (see Note 10) 5,727,000  
Net cash provided by (used in) investing activities 5,422,000 (701,000)
Cash flows from financing activities:    
Net borrowing of revolving credit 1,391,000 1,671,000
Principal repayments of long term debt (1,236,000) (1,449,000)
Cash provided by financing activities of continuing operations 155,000 222,000
Principal repayments of long term debt for discontinued operations (18,000) (18,000)
Cash provided by financing activities 137,000 204,000
Decrease in cash (297,000) (4,273,000)
Cash at beginning of period 333,000 4,368,000
Cash at end of period 36,000 95,000
Interest paid 341,000 353,000
Income taxes paid $ 30,000 $ 104,000