Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2014
Sep. 30, 2013
Cash flows from operating activities:    
Net (loss) income $ (1,691,730) $ (886,478)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 314,619 182,399
Deferred tax benefit (1,130,306) (80,570)
Fair value of warrants issued to advisor in connection with acquisition 138,768  
Stock-based compensation expense 50,292   
Change in fair value of warrant liability 21,015 (315,759)
Loss on sale of marketable securities, net   7,640
Ammortization of premium on short-term investments, net 45,020   
Gain on sale of property and equipment    (4,158)
Interest added to notes payable    16,881
Accretion of interest on notes payable    138,255
Changes in operating assets and liabilities:    
Accounts receivable 128,128 1,532,222
Prepaid expenses and other current assets (216,761) (72,803)
Merchant reserve 236,480   
Incremental direct costs (35,171)   
Prepaid license fee (393,750)   
Accounts payable (718,067) (93,006)
Accrued expenses (402,836) 83,205
Deferred income (204,664)   
Customer deposits 393,750   
Merchant cash advances (447,371)   
Net cash (used in) provided by operating activities (3,912,584) 507,828
Cash flows from investing activities:    
Proceeds from maturities of short-term investments 6,243,000 242,206
Purchases of short-term investments (15,525,533)   
Cash paid to purchase technology    (200,000)
Costs incurred to develop technology (125,291) (243,325)
Cash paid for acquisition, net of cash acquired (3,549,802) (135,945)
Sale of property and equipment    6,203
Purchases of property and equipment (13,300) (32,564)
Net cash used in investing activities (12,970,926) (363,425)
Cash flows from financing activities:    
Proceeds from IPO, net of offering costs    19,474,565
Distributions to members    (200,000)
Deferred IPO costs    (479,356)
Payments of capital leases (5,305)   
Repurchase of common stock (25,862)   
Net cash (used in) provided by financing activities (31,167) 18,795,209
Net (decrease) increase in cash and cash equivalents (16,914,677) 18,939,612
Cash and cash equivalents, beginning of year 18,736,495 868,294
Cash and cash equivalents, end of period 1,821,818 19,807,906
Supplemental disclosures of other cash flow information:    
Cash paid for income taxes      
Cash paid for interest      
Non-cash disclosures:    
Common stock issued in connection with acquisition of NAPW 35,272,033   
Fair value of options issued in connection with acquisition of NAPW 556,496   
Fair value of warrants issued in connection with acquisition of NAPW 294,342   
Note payable - related party acquisition financing 434,582   
IPO costs in accounts payable    30,567
Deferred revenue in accounts receivable    152,137
Conversion of notes payable to equity    1,643,036
Reduction of additional paid-in capital for deferred IPO costs    $ 1,342,163