Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 96,000	$ (806,000)
Less: loss from discontinued operations, net of taxes of $0	(157,000)	(131,000)
Income (loss) from continuing operations, net of taxes	253,000	(675,000)
Adjustments to reconcile income (loss) from continuing operations to cash provided by operating activities :
Depreciation and amortization	372,000	1,155,000
Amortization of debt issuance costs	8,000	9,000
Deferred tax expense	22,000	35,000
Provision for (recovery of) bad debt reserves	13,000	(17,000)
Gain on disposal of plant, property, and equipment	(8,000)
Issuance of common stock for services	60,000	48,000
Stock-based compensation	46,000	23,000
Changes in operating assets and liabilities of continuing operations
Accounts receivable	3,165,000	1,983,000
Unbilled receivables	65,000	(1,133,000)
Prepaid expenses, inventories and other assets	348,000	(392,000)
Accounts payable, accrued expenses and unearned revenue	(1,729,000)	975,000
Cash provided by continuing operations	2,615,000	2,011,000
Cash used in discontinued operations	(181,000)	(139,000)
Cash provided by operating activities	2,434,000	1,872,000
Cash flows from investing activities:
Purchases of property and equipment	(248,000)	(22,000)
Proceeds from sale of plant, property, and equipment	8,000
Payment to finite risk sinking fund	(50,000)	(35,000)
Cash used in investing activities of continuing operations	(290,000)	(57,000)
Cash provided by investing activities of discontinued operations	17,000	17,000
Cash used in investing activities	(273,000)	(40,000)
Cash flows from financing activities:
Repayments of revolving credit borrowings	(14,033,000)	(12,675,000)
Borrowing on revolving credit	14,033,000	11,115,000
Principal repayments of long term debt	(304,000)	(304,000)
Cash used in financing activities	(304,000)	(1,864,000)
Effect of exchange rate changes on cash	(4,000)	3,000
Increase (decrease) in cash	1,853,000	(29,000)
Cash at beginning of period	1,063,000	163,000
Cash at end of period	2,916,000	134,000
Supplemental disclosure:
Interest paid	54,000	102,000
Income taxes paid	$ 96,000	$ 12,000