Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF OPERATIONS

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
REVENUES:    
Project $ 1,884,079 $ 3,200,182
Maintenance and technical support 1,127,932 2,230,633
IT asset management services 872,577 674,078
Total Revenues 3,884,588 6,104,893
COST OF REVENUES:    
Project 1,487,516 1,580,665
Maintenance and technical support 458,960 785,872
IT asset management services 348,076 365,914
Total Cost of Revenues 2,294,552 2,732,451
GROSS PROFIT 1,590,036 3,372,442
OPERATING EXPENSES:    
Selling and marketing expenses 179,318 278,264
Salaries, wages and contract labor 3,098,782 3,370,191
Research and development 310,099 271,950
Professional Fees 393,531 306,458
General and administrative expenses 1,051,799 889,685
Total Operating Expenses 5,033,529 5,116,548
LOSS FROM OPERATIONS (3,443,494) (1,744,106)
OTHER INCOME (EXPENSES):    
Interest expense (4,519,035) (561,174)
Gain on settlement of debt 64,647
Warrant derivative gain (loss) 2,743,686 (264,099)
Other income, net 1,719 7,766
Total Other Income (Expense) (1,708,983) (817,507)
NET LOSS (5,152,477) (2,561,613)
Series A preferred stock dividends (17,760) (5,920)
Net loss applicable to common stock $ (5,170,237) $ (2,567,533)
NET LOSS APPLICABLE TO COMMON STOCK PER COMMON SHARE:    
Basic & Diluted $ (1.43) $ (1.36)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:    
Basic & Diluted 3,606,401 1,883,598