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, 2013
Dec. 31, 2012
Cash flows from operating activities:    
Net (loss) income $ (1,436,387) $ 2,371,691
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:    
Depreciation and amortization expense 281,648 112,943
Deferred tax benefit (380,832)   
Change in fair value of warrant liability (330,147)   
Loss on sale of investments, net 7,640 5,530
Amortization of discount/premium on investments    (370)
Provision for bad debts    49,462
Gain on sale of property and equipment (4,158)   
Interest added to notes payable 16,881 102,026
Accretion of interest on notes payable 138,255 70,385
Changes in operating assets and liabilities:    
Accounts receivable 756,122 (18,041)
Accounts payable (46,294) 157,403
Accrued expenses 85,812 (169,346)
Prepaid expenses (28,445) (63,982)
Deferred income 524,420   
Net cash (used in) provided by operating activities (415,485) 2,617,701
Cash flows from investing activities:    
Proceeds from sale of marketable securities 242,206 150,796
Cash paid to purchase technology (200,000)   
Cash paid for acquisition, net of cash acquired (135,945)   
Costs incurred to develop technology (354,808) (358,247)
Sale of property and equipment 6,203   
Purchases of property and equipment (38,424) (20,513)
Security deposits 11,067 (2,144)
Net cash used in investing activities (469,701) (230,108)
Cash flows from financing activities:    
Distributions to members (200,000) (2,900,000)
Proceeds from IPO, net of offering costs 19,474,565   
Repayments of notes payable    (176,000)
Deferred IPO costs (509,923) (697,730)
Repurchase of common stock (11,255)   
Net cash provided by (used in) financing activities 18,753,387 (3,773,730)
Net increase (decrease) in cash and cash equivalents 17,868,201 (1,386,137)
Cash and cash equivalents, beginning of year 868,294 2,254,431
Cash and cash equivalents, end of year 18,736,495 868,294
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes      
Cash paid for interest      
Non-cash disclosures:    
IPO costs in accounts payable    107,610
Deferred revenue in accounts receivable    500,000
Conversion of notes payable to equity 1,643,036   
Reduction of additional paid-in capital for deferred IPO costs 1,342,163   
Fair value of warrant liabilities $ 415,368