Annual report pursuant to section 13 and 15(d)

STATEMENTS OF CASH FLOWS

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STATEMENTS OF CASH FLOWS (USD $)
 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash Flows from Operating Activities    
Net (Loss) $ (864,995) $ (1,221,446)
Adjustments to reconcile net (loss) to net cash provided from operating activities:    
Depreciation 7,177 9,452
Amortization of software 27,017 9,006
Amortization of prepaids 16,538 (8,815)
Amortization of prepaid consulting 22,500 86,687
Amortization of original issue discount 24,953 11,541
Options issued for services 4,000   
Stock issued for Director's services 10,000   
Stock issued for compensation   385,000
Amortization of beneficial conversion value and warrant discounts 217,972 115,410
Loss on sales of assets    396
Changes in assets and liabilities:    
Accounts receivable 148,524 (91,339)
Accounts payable 41,185 71,041
Accounts payable - related parties 628  
Accrued expenses 125,694 (1,509)
Deferred revenue 38,445 (3,192)
Accrued interest 10,612  
Net Cash (Used in) Operating Activities (169,750) (637,768)
Cash Flows from Investing Activities    
Software development costs    (36,022)
Purchase of property and equipment    (15,649)
Net Cash (Used In) Investing Activities    (51,671)
Cash Flows from Financing Activities    
Proceeds from line of credit facility 164,192 18,705
Repayments of line of credit facility (162,309) (19,700)
Insurance premium repayments (9,792) 970
Proceeds provided by checks written in excess of cash balances 3,880   
Proceeds from factor, net of repayments (90,539) 115,126
Proceeds from shareholder 135,000   
Repayment to shareholder (10,000)  
Proceeds from convertible notes, third parties   250,000
Proceed from notes related parties 284,094 25,000
Repayment to related parties (145,764)  
Proceeds from issuance of stock   230,000
Net Cash Provided by Financing Activities 168,762 620,101
Net Change in Cash and Cash Equivalents (988) (69,338)
Cash and Cash Equivalents at Beginning of Period 988 70,326
Cash and Cash Equivalents at End of period    988
Supplemental disclosure of cash flow information:    
Cash paid for interest 25,500 7,106
Cash paid for taxes      
Non-cash investing and financing activities:    
Non-cash expense on consulting services for contributed capital   146,678
Premium financing 10,230  
Conversion of officer's accrued payroll to loans 125,694  
Conversion of note payable to common stock 137,500  
Original issue discount related to notes payable 41,000 11,541
Beneficial conversion feature and warrants related to notes payable $ 129,015 $ 115,410