Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
OPERATING ACTIVITIES:    
Net loss $ (673,073) $ (75,604)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 541,121 364,207
Deferred rent 4,277 14,613
Deferred revenue (22,563) (10,508)
Deferred income taxes (320,507) (55,806)
Provision for (recovery of) doubtful accounts 34,810 (26,432)
Foreign exchange loss (gain) 221,554 (87,811)
Gain from reduction in referral fee (105,523) 0
Interest accretion on convertible promissory note 23,534 0
Stock-based compensation expense 62,154 0
Other 1,921 0
Changes in operating assets and liabilities:    
Accounts receivable 185,442 132,419
Other assets (60,233) 57,449
Accounts payable and other liabilities 208,949 (23,909)
Net cash provided by operating activities 101,863 288,618
INVESTING ACTIVITIES:    
Capital expenditures (102,325) (116,142)
Advances to majority shareholder (2,522) (205,000)
Repayment of advances to majority shareholder 1,000 200,000
Acquisitions 0 (275,000)
Net cash used in investing activities (103,847) (396,142)
FINANCING ACTIVITIES:    
Proceeds from note payable to majority shareholder 165,000 1,000,000
Repayments of note payable to majority shareholder (115,000) 0
Repayments of notes payable - other (600,246) (476,377)
Proceeds from line of credit 1,485,000 1,647,984
Repayments of line of credit (1,285,000) (1,544,297)
IPO-related costs (96,542) (240,000)
Net cash (used in) provided by financing activities (446,788) 387,310
EFFECT OF EXCHANGE RATE CHANGES ON CASH (16,651) (64,510)
NET (DECREASE) INCREASE IN CASH (465,423) 215,276
CASH - Beginning of the period 497,944 268,323
CASH - End of period 32,521 483,599
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:    
Acquisitions through assumption of promissory notes 0 1,225,000
Finance lease 0 6,703
Purchase of prepaid insurance through assumption of note 36,640 0
Accrued IPO-related costs 457,298 0
SUPPLEMENTAL INFORMATION - Cash paid during the period for:    
Income taxes 5,230 57,000
Interest $ 108,094 $ 60,864