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, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net loss $ (36,039,000) $ (3,179,000)
Less: loss on discontinued operations (1,568,000) (30,000)
Loss from continuing operations (34,471,000) (3,149,000)
Adjustments to reconcile net income from continuing operations to cash provided by operations:    
Depreciation and amortization 4,126,000 5,470,000
Amortization of debt discount 36,000 12,000
Amortization of fair value of customer contracts (1,298,000) (3,667,000)
Deferred tax benefit (639,000) (234,000)
(Benefit) provision for bad debt and other reserves (304,000) 124,000
Foreign exchange translation gain 4,000 1,000
Impairment of goodwill 27,856,000 0
Loss on disposal of plant, property and equipment 49,000 15,000
Issuance of common stock for services 206,000 217,000
Stock-based compensation 125,000 191,000
Changes in operating assets and liabilities of continuing operations:    
Accounts receivable 3,769,000 5,929,000
Unbilled receivables 3,448,000 1,390,000
Prepaid expenses, inventories and other assets 1,828,000 2,845,000
Accounts payable, accrued expenses and unearned revenue (6,431,000) (11,631,000)
Cash used in continuing operations (1,696,000) (2,487,000)
Cash used in discontinued operations (1,020,000) (922,000)
Cash used in operating activities (2,716,000) (3,409,000)
Cash flows from investing activities:    
Purchases of property and equipment, net (944,000) (412,000)
Proceeds from sale of plant, property and equipment 0 121,000
Change in restricted cash, net 0 1,500,000
Payments to finite risk sinking fund (35,000) (1,918,000)
Non-controlling distribution/redemption (508,000) 0
Cash used in investing activities of continuing operations (1,487,000) (709,000)
Cash used in investing activities of discontinued operations 0 (2,000)
Net cash used in investing activities (1,487,000) (711,000)
Cash flows from financing activities:    
Net repayments of revolving credit 0 0
Principal repayments of long term debt (2,796,000) (3,532,000)
Proceeds from issuance of long-term debt 3,000,000 0
Cash provided by (used in) financing activities of continuing operations 204,000 (3,532,000)
Principal repayment of long-term debt for discontinued operations (36,000) (35,000)
Cash provided by (used in) financing activities 168,000 (3,567,000)
Decrease in cash (4,035,000) (7,687,000)
Cash at beginning of period 4,368,000 12,055,000
Cash at end of period 333,000 4,368,000
Supplemental disclosure:    
Interest paid 714,000 922,000
Income taxes paid 110,000 479,000
Issuance of Common Stock for debt 200,000 0
Issuance of Warrants for debt 59,000 0
Purchase of equipment through capital lease obligation $ 71,000 $ 0