Quarterly report pursuant to sections 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities:    
Net loss $ (3,969,000) $ (2,915,000)
Less: loss from discontinued operations, net of taxes (266,000) (27,000)
Loss from continuing operations, net of taxes (3,703,000) (2,888,000)
Adjustments to reconcile net loss to cash used in operations:    
Depreciation and amortization 1,211,000 1,287,000
Amortization of debt discount 21,000 0
Amortization of fair value of customer contracts 0 (422,000)
Deferred tax expense (benefit) 30,000 (1,432,000)
(Benefit) provision for bad debt and other reserves (9,000) 5,000
Foreign exchange loss (16,000) (2,000)
Loss on disposal of plant, property and equipment 0 2,000
Issuance of common stock for services 64,000 49,000
Stock-based compensation (18,000) 51,000
Changes in operating assets and liabilities of continuing operations    
Accounts receivable 534,000 704,000
Unbilled receivables (755,000) 2,464,000
Prepaid expenses, inventories and other assets 197,000 548,000
Accounts payable, accrued expenses and unearned revenue 103,000 (2,479,000)
Cash used in continuing operations (2,341,000) (2,113,000)
Cash provided by (used in) discontinued operations 861,000 (139,000)
Cash used in operating activities (1,480,000) (2,252,000)
Cash flows from investing activities:    
Purchases of property and equipment, net (213,000) (116,000)
Payment to finite risk sinking fund (7,000) (9,000)
Cash used in investing activities (220,000) (125,000)
Cash flows from financing activities:    
Net borrowing of revolving credit 2,033,000 988,000
Principal repayments of long term debt (618,000) (719,000)
Cash provided by financing activities of continuing operations 1,415,000 269,000
Principal repayments of long term debt for discontinued operations (9,000) (9,000)
Cash provided by (used in) financing activities 1,406,000 260,000
Decrease in cash (294,000) (2,117,000)
Cash at beginning of period 333,000 4,368,000
Cash at end of period 39,000 2,251,000
Supplemental disclosure:    
Interest paid 144,000 155,000
Income taxes paid $ 18,000 $ 25,000