v3.22.2.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities:    
Net (loss) income $ (2,124,000) $ 3,179,000
Less: loss from discontinued operations, net of taxes (Note 10) (442,000) (285,000)
(Loss) income from continuing operations, net of taxes (1,682,000) 3,464,000
Adjustments to reconcile (loss) income from continuing operations to cash used in operating activities:    
Depreciation and amortization 1,433,000 1,208,000
Interest on finance lease with purchase option 7,000
Gain on extinguishment of debt (5,381,000)
Amortization of debt issuance costs 44,000 28,000
Deferred tax benefit (147,000) (2,931,000)
(Recovery of) provision for bad debt reserves (47,000) 1,000
Loss on disposal of property and equipment 1,000 1,000
Issuance of common stock for services 363,000 304,000
Stock-based compensation 310,000 149,000
Changes in operating assets and liabilities of continuing operations    
Accounts receivable 1,426,000 (2,158,000)
Unbilled receivables 2,689,000 8,757,000
Prepaid expenses, inventories and other assets 829,000 1,700,000
Accounts payable, accrued expenses and unearned revenue (5,553,000) (9,180,000)
Cash used in continuing operations (334,000) (4,031,000)
Cash used in discontinued operations (559,000) (296,000)
Cash used in operating activities (893,000) (4,327,000)
Cash flows from investing activities:    
Purchases of property and equipment (947,000) [1] (1,132,000)
Proceeds from sale of property and equipment 25,000 1,000
Cash used in investing activities of continuing operations (922,000) (1,131,000)
Cash flows from financing activities:    
Repayments of revolving credit borrowings (54,414,000) (59,900,000)
Borrowing on revolving credit 54,414,000 59,900,000
Proceeds from capital line 524,000
Principal repayments of finance lease liabilities (821,000) (281,000)
Principal repayments of long term debt (375,000) (330,000)
Payment of debt issuance costs (35,000) (40,000)
Proceeds from sale of Common Stock, net of Offering costs paid 618,000
Proceeds from stock subscription, net of Offering costs paid 4,816,000
Proceeds from issuance of common stock upon exercise of options 13,000
Cash (used in) provided by financing activities of continuing operations (694,000) 4,783,000
Effect of exchange rate changes on cash (4,000) (4,000)
Decrease in cash and finite risk sinking fund (restricted cash) (2,513,000) (679,000)
Cash and finite risk sinking fund (restricted cash) at beginning of period 15,911,000 19,370,000
Cash and finite risk sinking fund (restricted cash) at end of period 13,398,000 18,691,000
Supplemental disclosure:    
Interest paid 125,000 163,000
Income taxes paid 6,000 15,000
Equipment purchase subject to finance lease 114,000 319,000
Equipment purchase subject to financing $ 29,000
[1] Net of financed amount of $0 and $114,000 for the three and nine months ended September 30, 2022, respectively.

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