v3.21.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Cash flows from operating activities:    
Net income $ 3,179,000 $ 2,783,000
Less: loss from discontinued operations, net of taxes (Note 10) (285,000) (266,000)
Income from continuing operations, net of taxes 3,464,000 3,049,000
Adjustments to reconcile income from continuing operations to cash (used in) provided by operating activities:    
Depreciation and amortization 1,208,000 1,189,000
Interest on finance lease with purchase option 7,000 6,000
(Gain) loss on extinguishment of debt (5,381,000) 27,000
Amortization of debt issuance/debt discount costs 28,000 187,000
Deferred tax benefit (2,931,000) (2,000)
Provision for (recovery of) bad debt reserves 1,000 (94,000)
Loss on disposal of property and equipment 1,000 27,000
Issuance of common stock for services 304,000 166,000
Stock-based compensation 149,000 161,000
Changes in operating assets and liabilities of continuing operations    
Accounts receivable (2,158,000) (170,000)
Unbilled receivables 8,757,000 (6,382,000)
Prepaid expenses, inventories and other assets 1,700,000 1,284,000
Accounts payable, accrued expenses and unearned revenue (9,180,000) 4,055,000
Cash (used in) provided by continuing operations (4,031,000) 3,503,000
Cash used in discontinued operations (296,000) (329,000)
Cash (used in) provided by operating activities (4,327,000) 3,174,000
Cash flows from investing activities:    
Purchases of property and equipment (1,132,000) [1] (1,488,000) [2]
Proceeds from sale of property and equipment 1,000 4,000
Cash used in investing activities of continuing operations (1,131,000) (1,484,000)
Cash provided by investing activities of discontinued operations 118,000
Cash used in investing activities (1,131,000) (1,366,000)
Cash flows from financing activities:    
Repayments of revolving credit borrowings (59,900,000) (72,601,000)
Borrowing on revolving credit 59,900,000 72,280,000
Proceeds from issuance of long-term debt 5,666,000
Principal repayments of finance lease liabilities (281,000) (411,000)
Principal repayments of long term debt (330,000) (2,127,000)
Payment of debt issuance costs (40,000) (85,000)
Proceeds from sale of Common Stock, net of Offering costs paid (Note 15) 618,000
Proceeds from stock subscription, net of Offering costs paid (Note 15) 4,816,000
Proceeds from issuance of common stock upon exercise of options 6,000
Cash provided by financing activities of continuing operations 4,783,000 2,728,000
Effect of exchange rate changes on cash (4,000) (4,000)
(Decrease) increase in cash and finite risk sinking fund (restricted cash) (679,000) 4,532,000
Cash and finite risk sinking fund (restricted cash) at beginning of period 19,370,000 11,697,000
Cash and finite risk sinking fund (restricted cash) at end of period 18,691,000 16,229,000
Supplemental disclosure:    
Interest paid 163,000 286,000
Income taxes paid 15,000 34,000
Equipment purchase subject to finance lease 319,000 856,000
Equipment purchase subject to financing $ 29,000 $ 27,000
[1] Net of financed amount of $271,000 and $348,000 for the three and nine months ended September 30, 2021, respectively.
[2] Net of financed amount of $751,000 and $883,000 for the three and nine months ended September 30, 2020, respectively.

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