Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Operating activities:    
Net loss $ (3,075,425) $ (200,554)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 1,434,867 1,102,056
Stock based compensation 586,159 686,448
Provision (recovery) of doubtful accounts 141,000 (757)
Amortization of financing fees 12,800 12,800
Adjustment of European liabilities related to discontinued operations 1,109 (5,144)
Change in operating assets and liabilities:    
Accounts receivable 2,059,830 1,693,820
Accounts payable (3,428,398) (2,658,571)
Accrued expenses and other liabilities (555,679) (294,928)
Prepaid expenses and other assets (15,249) 115,733
Net cash (used in) provided by operating activities (2,838,986) 450,903
Investing activities:    
Net cash received from NetSeer asset acquisition 235,763 0
Purchases of equipment and capitalized development costs (620,698) (695,484)
Net cash used in investing activities (384,935) (695,484)
Financing activities:    
Net proceeds on revolving line of credit 5,000,000 0
Payoff of NetSeer debt acquired (2,015,577) 0
Payments on capital leases (26,595) (25,878)
Net taxes paid on RSU grants exercised 0 (11,952)
Net cash provided by (used in) financing activities 2,957,828 (37,830)
Net change – cash (266,093) (282,411)
Cash, beginning of year 3,946,804 4,257,204
Cash, end of period 3,680,711 3,974,793
Supplemental information:    
Interest paid 105,062 34,529
Income taxes paid 0 10,000
Non cash investing and financing activities:    
NetSeer stock issuance (See Note 13) 4,459,244 0
Stock issuance for partial settlement of contingent liability 0 300,001
Write-down of domain names and corresponding contingent liability $ 222,477 $ 46,367