Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (3,519,041)	$ (34,438,321)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,498,136	2,730,880
Deferred tax benefit	(1,218,092)	1,509,395
Gain on lease cancellation	(423,998)
Impairment expense		26,744,249
Stock-based compensation expense	217,547	350,667
Amortization of deferred financing costs	156,594
Amortization of prepaid license fees	112,500	168,750
Amortization of premium on short-term investments, net		76,878
Amortization of customer deposits	(112,500)	(168,750)
Change in fair value of warrant liability	401,000	(93,784)
Accretion of debt discount		7,814
Loss on sale of property and equipment		32,649
Changes in operating assets and liabilities:
Accounts receivable	671,056	886,810
Prepaid expenses and other current assets	181,903	(682,541)
Incremental direct costs	476,300	(184,420)
Accounts payable	893,210	(1,630,793)
Accrued expenses	681,779	1,510,273
Deferred revenue	(3,560,351)	(1,089,802)
Deferred rent	10,279	63,267
Other liabilities	45,098
Net cash used in operating activities	(2,488,580)	(4,206,779)
Cash flows from investing activities:
Proceeds from maturities of short-term investments	500,000	5,297,000
Purchases of short-term investments		(925,000)
Costs incurred to develop technology		(393,385)
Purchases of property and equipment		(53,596)
Security deposit	194,411	(14,952)
Net cash provided by investing activities	694,411	3,910,067
Cash flows from financing activities:
Proceeds from the sale of common stock		5,235,300
Repayment of note payable		(1,294,753)
Payment of offering costs		(670,877)
Proceeds from line of credit	1,942,625
Payment of debt issuance costs related to Master Credit Facility	(488,082)
Payment of deferred offering costs related to CFL Transaction	(1,049,026)
Merchant reserve	(166,078)	(400,000)
Shares repurchased on vesting of restricted stock		(195,976)
Payments of capital leases		(15,232)
Net cash provided by financing activities	239,439	2,658,462
Net (decrease) increase in cash and cash equivalents	(1,554,730)	2,361,750
Cash and cash equivalents, beginning of period	2,070,693	1,519,467
Cash and cash equivalents, end of period	515,963	3,881,217
Supplemental disclosures of other cash flow information:
Cash paid for income taxes	4,605	4,631
Cash paid for interest	21,740
Non-cash investing and financing activities:
Issuance of warrants in connection with Master Credit Facility	783,458
Reclassification of derivative liability to additional paid in capital	781,000
Working capital adjustment to note payable		32,281
Increase in goodwill resulting from NAPW legal settlement		$ 133,693