Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss	$ (2,542,000)	$ (3,958,000)
Less: (loss) income on discontinued operations	(936,000)	2,105,000
Loss from continuing operations	(1,606,000)	(6,063,000)
Adjustments to reconcile loss from continuing operations to cash used in operating activities:
Depreciation and amortization	1,909,000	2,309,000
Amortization of debt discount	43,000	43,000
Deferred tax expense	71,000	60,000
Recovery of bad debt reserves	(21,000)	(6,000)
Impairment loss on goodwill		380,000
Gain on disposal of plant, property and equipment		(16,000)
Issuance of common stock for services	140,000	129,000
Stock-based compensation	46,000	(17,000)
Changes in operating assets and liabilities of continuing operations
Accounts receivable	(1,322,000)	(2,654,000)
Unbilled receivables	1,332,000	793,000
Prepaid expenses, inventories and other assets	451,000	960,000
Accounts payable, accrued expenses and unearned revenue	(2,316,000)	(247,000)
Cash used in continuing operations	(1,273,000)	(4,329,000)
Cash used in discontinued operations	(798,000)	(1,527,000)
Cash used in operating activities	(2,071,000)	(5,856,000)
Cash flows from investing activities:
Purchases of property and equipment	(265,000)	(333,000)
Proceeds from sale of property and equipment		42,000
Payment to finite risk sinking fund	(17,000)	(14,000)
Cash used in investing activities of continuing operations	(282,000)	(305,000)
Proceeds from property insurance claims of discontinued operations		5,727,000
Net cash (used in) provided by investing activities	(282,000)	5,422,000
Cash flows from financing activities:
Repayments of revolving credit borrowings	(31,478,000)	(30,295,000)
Borrowing of revolving credit	33,162,000	31,686,000
Proceeds from Issuance of common stock	7,000
Principal repayments of long term debt	(1,164,000)	(1,236,000)
Principal repayments of long term debt-related party	(750,000)
Cash (used in) provided by financing activities of continuing operations	(223,000)	155,000
Principal repayments of long term debt for discontinued operations		(18,000)
Cash (used in) provided by financing activities	(223,000)	137,000
Effect of exchange rate changes on cash	(63,000)
Decrease in cash	(2,639,000)	(297,000)
Cash at beginning of period	3,680,000	333,000
Cash at end of period	1,041,000	36,000
Supplemental disclosure:
Interest paid	277,000	341,000
Income taxes paid	$ 50,000	$ 30,000