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8-K - interCLICK, Inc.v164819_8k.htm
 
interCLICK Announces Record Results and Accelerated Growth in Q3

Revenue Grows 150% Year-over-Year and 35% Sequentially
Supply Chain Efficiencies Lead to Record Gross Profit and EBITDA
Company Raises 2009 Full-Year Outlook and Issues Preliminary 2010 Guidance

NEW YORK – November 4, 2009 – interCLICK, Inc. (OTC.BB: INRK), the leading ad network in data and inventory transparency, announced today its results for the quarter ended September 30, 2009.  Earlier today, the Company announced that it has been granted approval to list its common stock on The NASDAQ Capital Market.  Effective with the commencement of trading on Thursday, November 5, 2009, interCLICK’s common stock will trade under the NASDAQ ticker symbol “ICLK.”

Summary Results
 
$ in millions (except per share amounts)
 
                   
      Q3 2009       Q3 2008    
Growth
 
Revenue
  $ 14.4     $ 5.8       150 %
Gross profit
  $ 7.3     $ 1.7       315 %
Gross margin
    50.4 %     30.3 %        
                         
EBITDA
  $ 1.4     $ (0.8 )  
nm
 
Free Cash Flow
  $ 1.4     $ (1.0 )  
nm
 
                         
Operating income (loss)
  $ 0.7     $ (1.4 )  
nm
 
Net earnings (loss)
  $ 0.3     $ (3.9 )  
nm
 
EPS
  $ 0.01     $ (0.20 )  
nm
 
                         
See reconciliation of GAAP to non-GAAP measures on attached financial tables.
 
 
Revenue was $14.4 million, up 150% year-over-year and 35% sequentially, an acceleration from 26% sequential growth in the prior period. Growth was driven primarily by increased demand from existing advertisers as well as strong penetration into new key accounts.  The Company previously forecasted that revenue would exceed $12.5 million.

Gross profit margin was 50.4%, 20.1 percentage points higher than the year-ago-period and 5.6 percentage points higher sequentially.  Gross margin expansion continued to be driven by supply chain management improvements and efficiencies generated through the Company’s advanced proprietary technology platform.


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NEW YORK              CHICAGO            LOS ANGELES             SAN FRANCISCO             WEST PALM BEACH
contact us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us online at www.interclick.com

 
EBITDA, a non-GAAP measure, was $1.4 million, compared to an EBITDA loss of $(0.8) million in the year-ago period and up 637% sequentially compared to $0.2 million. Free Cash Flow was $1.4 million, compared to negative Free Cash Flow of $(1.0) million in the year-earlier period and up 924% sequentially compared to $0.1 million.  Growth was driven by improved operating efficiencies leading to a reduction in operating expenses as a percentage of revenue versus the prior year period.

Operating income was $0.7 million, net income was $0.3 million, and EPS was $0.01 per share, compared to losses in the quarters ended September 30, 2008 and June 30, 2009.

“The third quarter was another outstanding quarter for interCLICK,” said Michael Mathews, interCLICK’s CEO.  “Our dedication to effective supply chain management continues to drive client satisfaction and differentiate us in the marketplace.  We look forward to ending the year strong and heading into 2010 with significant momentum.”
 

For the nine months ended September 30, 2009, interCLICK had revenue of $33.5 million, an increase of 139% compared to revenue of $14.0 million in the year-earlier period. The Company generated gross profit of $16.0 million, an increase of 336% compared to $3.7 million in the nine months ended September 30, 2008.  interCLICK recorded a net loss of $(0.7) million, or $(0.04) per share, compared to a net loss of $(11.4) million, or $(0.62) per share in the same nine months in 2008.

The Company ended the third quarter with cash and cash equivalents of $1.9 million. During the third quarter, the Company increased its credit facility with Crestmark Commercial Capital Lending LLC from $5.5 million to $7.0 million. As part of the amendment to the credit facility, Crestmark also agreed to reduce the monthly servicing fee the Company was previously paying from 0.575% to 0.375%, which translates to a 300 basis point reduction in the Company’s effective annualized cost of capital.

Business Outlook

interCLICK expects fourth quarter revenue to exceed $18 million, which would represent year-over-year growth of 110%, and EBITDA to exceed $1.5 million.  The Company raised its full year revenue forecast to more than $51 million, an increase of at least 125% compared to 2008, and full year EBITDA of at least $4 million. Previously, the Company had forecasted that full year revenue would exceed $44 million.

The Company announced preliminary guidance for 2010, including revenue growth of at least 55% to $80 million, and EBITDA of at least $9 million.


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NEW YORK              CHICAGO            LOS ANGELES             SAN FRANCISCO             WEST PALM BEACH
contact us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us online at www.interclick.com
 

 
 
Conference Call

The Company will host a conference call to discuss its third quarter financial results and business outlook on Wednesday, November 4, 2009, at 4:30 p.m. (EST).  The conference call can be accessed by dialing toll-free (888) 819-8033 (U.S.) or (913) 312-0709 (international).  A live audiocast of the conference call can be accessed from the Company’s website at http://www.interclick.com/MarketWatchV2.aspx.  A replay of the audiocast will be available through December 3, 2009.

Reclassifications

Certain amounts in the accompanying financial tables have been reclassified to conform to the third quarter 2009 presentation. 

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to period comparison. Company management believes that the non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of the performance of our core cash operations. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key metrics used by management.

EBITDA. As is common in the industry, the Company uses EBITDA as a measure of performance to demonstrate operating income exclusive of interest, taxes, depreciation, and amortization including stock-based compensation. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes certain of its decisions based on EBITDA and Free Cash Flow. Since an outside investor may base its evaluation of the Company's performance on the Company's net income or loss, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net income or loss, income or loss from operations or any other measure for determining operating performance of liquidity, as determined under GAAP.

Free Cash Flow. Free Cash Flow measures EBITDA less capital expenditures. Management believes that Free Cash Flow provides meaningful information about the Company’s liquidity and future cash availability to fund its operations. A limitation of using Free Cash Flow versus the GAAP measure of net cash provided by operating activities is that the Free Cash Flow does not represent the total increase or decreases in the cash balance from operations for the period.


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NEW YORK              CHICAGO            LOS ANGELES             SAN FRANCISCO             WEST PALM BEACH
contact us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us online at www.interclick.com
 

 
 
To comply with Regulation G of the Securities and Exchange Commission, interCLICK, Inc. attaches to this press release and will post to the Company's website (www.interclick.com) any reconciliations of certain non-GAAP measures to the nearest comparable GAAP measures that are presented in this press release.

About interCLICK

interCLICK, Inc. operates the interCLICK Network, an online advertising platform that combines advanced behavioral targeting with complete data and inventory transparency, allowing advertisers to identify and track their desired audience on an unprecedented level. interCLICK offers advanced proprietary demographic, behavioral, contextual, geographic and retargeting technologies across a network of name brand publishers to ensure the right message is delivered to a precise audience in a brand friendly environment. For more information about the interCLICK Network, visit http://www.interclick.com.

Safe Harbor

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”) including our expectations regarding revenue growth  and EBITDA for the fourth quarter and full year 2009, and preliminary guidance for 2010 including revenue growth and EBITDA. Additionally, words such as “seek,” “intend,” “believe,” “plan,” “estimate,” “expect,” “anticipate” and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of intense competition, the continuation or worsening of current economic conditions and the condition of the domestic and global credit and capital markets. Further information on interCLICK’s risk factors is contained in its filings with the Securities and Exchange Commission, including the final prospectus dated August 31, 2009. interCLICK does not undertake any duty nor does it intend to update the results of these forward-looking statements.

Contact

Roger Clark, CFO
(646) 395-1776
roger.clark@interclick.com





Page 4 of 4 (Financial Tables Attached)
 
 
NEW YORK              CHICAGO            LOS ANGELES             SAN FRANCISCO             WEST PALM BEACH
contact us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us online at www.interclick.com
 

 
 
interCLICK, Inc.
 
For the Three
   
For the Three
   
For the Three
   
For the Three
   
For the Three
   
For the Three
   
For the Three
 
(formerly Customer Acquisition Network Holdings, Inc.)
 
Months Ended
   
Months Ended
   
Months Ended
   
Months Ended
   
Months Ended
   
Months Ended
   
Months Ended
 
Quarterly Consolidated Statements of Operations: 1Q08 to 3Q09
 
Sept. 30, 2009
   
June 30, 2009
   
March 31, 2009
   
Dec. 31, 2008
   
Sept. 30, 2008
   
June 30, 2008
   
March 31, 2008
 
                                           
Revenues
  $ 14,395,236     $ 10,648,686     $ 8,423,291     $ 8,460,030     $ 5,756,707     $ 4,673,629     $ 3,561,967  
Cost of revenue
    7,141,926       5,882,655       4,474,279       5,304,078       4,011,020       3,488,190       2,830,807  
Gross profit
    7,253,310       4,766,031       3,949,012       3,155,952       1,745,687       1,185,439       731,160  
                                                         
Operating expenses:
                                                       
Sales and marketing
    2,317,245       1,734,354       1,416,522       892,187       886,511       1,127,515       429,749  
General and administrative
    3,383,752       2,928,162       1,709,193       2,366,567       1,881,513       2,010,278       2,221,568  
Technology support
    830,626       765,674       552,803       336,836       294,559       246,769       298,252  
Amortization of intangible assets
    49,760       49,760       49,760       104,570       104,571       104,630       104,738  
Total operating expenses
    6,581,383       5,477,950       3,728,278       3,700,160       3,167,153       3,489,192       3,054,308  
                                                         
Operating income/(loss) from continuing operations
    671,927       (711,919 )     220,734       (544,208 )     (1,421,466 )     (2,303,753 )     (2,323,148 )
                                                         
Other income (expense):
                                                       
Interest income
    -       -       12       2,192       8,140       3,329       3,433  
Loss on settlement of debt
    -       -       -       -       -       (20,121 )     -  
Loss on sale of available-for-sale securities
    -       (36,349 )     -       -       (116,454 )     -       -  
Loss on disposal of fixed assets
    -       -       -       1,750       (15,385 )     -       -  
Loss on change in warrant derivative liability
    (124,211 )     (159,294 )     (72,767 )     -       -       -       -  
Interest expense
    (245,854 )     (126,681 )     (113,592 )     (103,413 )     (189,382 )     (534,887 )     (698,616 )
Total other income (expense)
    (370,065 )     (322,324 )     (186,347 )     (99,471 )     (313,081 )     (551,679 )     (695,183 )
                                                         
Income/(loss) from continuing operations before income taxes
    301,862       (1,034,243 )     34,387       (643,679 )     (1,734,547 )     (2,855,432 )     (3,018,331 )
                                                         
Income tax benefit
    -       -       -       1,687,305       -       -       -  
                                                         
Equity in investee's loss, net of taxes
    -       -       -       -       (404,103 )     (249,128 )     -  
                                                         
Income/(loss) from continuing operations
    301,862       (1,034,243 )     34,387       1,043,626       (2,138,650 )     (3,104,560 )     (3,018,331 )
                                                         
Discontinued operations:
                                                       
Loss from discontinued operations, net of tax
    -       -       -       752,292       (1,053,059 )     (218,187 )     (716,986 )
Loss on sale of discontinued operations, net of tax
    -       -       (1,220 )     (2,448,147 )     (498,554 )     (624,981 )     -  
Net loss from discontinued operations
    -       -       (1,220 )     (1,695,855 )     (1,551,613 )     (843,168 )     (716,986 )
                                                         
Net income/(loss)
    301,862       (1,034,243 )     33,167       (652,229 )     (3,690,263 )     (3,947,728 )     (3,735,317 )
                                                         
Other comprehensive loss:
                                                       
Loss on sale of available-for-sale securities
    -       -       -       -       (197,704 )     -       -  
Net loss from discontinued operations
            -       -       -       (197,704 )     -       -  
                                                         
Comprehensive income/(loss)
  $ 301,862     $ (1,034,243 )   $ 33,167     $ (652,229 )   $ (3,887,967 )   $ (3,947,728 )   $ (3,735,317 )
                                                         
Loss per share from continuing operations - basic and diluted
  $ 0.01     $ (0.05 )   $ -     $ 0.06     $ (0.12 )   $ (0.17 )   $ (0.17 )
Loss per share from discontinued operations - basic and diluted
  $ -     $ -     $ -     $ (0.09 )   $ (0.08 )   $ (0.04 )   $ (0.04 )
Net loss per share - basic and diluted
  $ 0.01     $ (0.05 )   $ -     $ (0.03 )   $ (0.20 )   $ (0.21 )   $ (0.21 )
                                                         
Weighted average shares outstanding - basic
    20,628,033       19,164,938       18,922,584       18,922,584       18,904,109       18,470,345       17,973,167  
Weighted average shares outstanding - diluted
    22,399,838       19,164,938       18,969,631       18,922,584       18,904,109       18,470,345       17,973,167  
                                                         
Reconciliation of non-GAAP results of operations measures to nearest comparable GAAP measures.
                                         
                                                         
Operating income/(loss) from continuing operations
    671,927       (711,919 )     220,734       (544,208 )     (1,421,466 )     (2,303,753 )     (2,323,148 )
Stock-based compensation
    600,141       777,173       576,570       524,160       439,768       503,090       474,173  
Amortization of intangible assets
    49,760       49,760       49,760       104,570       104,571       104,630       104,738  
Depreciation
    77,917       74,978       72,386       72,817       66,448       49,476       56,747  
EBITDA
    1,399,745       189,992       919,450       157,339       (810,679 )     (1,646,556 )     (1,687,490 )
                                                         
Capital expenditures
    (12,968 )     (54,620 )     (19,263 )     (34,458 )     (151,398 )     (42,589 )     (128,561 )
                                                         
Free Cash Flow
    1,386,777       135,372       900,187       122,881       (962,077 )     (1,689,145 )     (1,816,051 )
 
 

 
 
interCLICK, Inc.
                                         
(formerly Customer Acquisition Network Holdings, Inc.)
                                         
Consolidated Balance Sheet: 1Q08 to 3Q09
 
Sept. 30, 2009
   
Jun. 30, 2009
   
Mar. 31, 2009
   
Dec. 31, 2008
   
Sep. 30, 2008
   
Jun. 30, 2008
   
Mar. 31, 2008
 
Assets
                                         
                                           
Current assets:
                                         
Cash and cash equivalents
  $ 1,929,094     $ 2,784,986     $ 191,002     $ 183,871     $ 611,189     $ 448,024     $ 1,142,369  
Accounts receivable, gross
    14,734,371       10,434,167       8,651,433       7,545,311       5,049,037       3,625,713       2,549,594  
Allowance for doubtful accounts
    (258,100 )     (185,032 )     (216,532 )     (425,000 )     (345,208 )     (201,248 )     (150,000 )
Accounts receivable, net of allowance
    14,476,271       10,249,135       8,434,901       7,120,311       4,703,829       3,424,465       2,399,594  
Note receivable
    -       -       -       -       -       1,000,000       -  
Due from factor
    1,114,698       1,034,712       798,424       637,705       -       -       -  
Prepaid expenses and other current assets
    373,505       372,187       186,851       94,164       205,796       43,291       78,329  
Total current assets
    17,893,568       14,441,020       9,611,178       8,036,051       5,520,814       4,915,780       3,620,292  
                                                         
Property and equipment, net
    458,483       523,432       543,790       596,913       633,523       570,799       583,845  
Intangible assets, net
    460,833       510,593       560,353       610,113       714,683       819,254       923,883  
Goodwill
    7,909,571       7,909,571       7,909,571       7,909,571       7,909,571       7,909,571       7,909,571  
Investment in OPMG
    728,572       728,572       1,650,000       1,650,000       1,694,000       3,500,872       -  
Deferred deferred debt issue costs, gross
    40,000       40,000       40,000       40,000       -       -       91,437  
Accumulated amortization
    (31,639 )     (28,250 )     (21,111 )     (6,667 )     -       -       (60,959 )
Deferred debt issue costs, net
    8,361       11,750       18,889       33,333       -       -       30,478  
Deferred acquisition costs
    -       -       -       -       -       -       -  
Other assets
    192,179       191,664       191,664       191,664       211,943       105,602       66,937  
Assets held for sale - discontinued operations
    -       -       -       -       -       -       8,302,381  
                                                         
Total assets
  $ 27,651,567     $ 24,316,602     $ 20,485,445     $ 19,027,645     $ 16,684,534     $ 17,821,878     $ 21,437,387  
                                                         
Liabilities and Stockholders’ Equity (Deficit)
                                                       
                                                         
Current liabilities:
                                                       
Accounts payable
  $ 7,508,531     $ 6,372,241     $ 5,123,171     $ 5,288,807     $ 3,937,095     $ 2,711,468     $ 2,434,127  
      Line of credit
    5,559,011       5,160,291       3,992,119       3,188,425       -       -       -  
      Senior secured notes payable, net of debt discount
    -       -       -       -       -       1,652,754       4,549,164  
      Note Payable, current portion
    -       288,500       400,000       400,000       1,300,000       -       -  
      Settlement payable
    -       -       -       248,780       1,090,230       -       -  
Accrued expenses
    1,688,013       603,501       599,915       310,685       610,390       1,602,154       1,137,981  
     Warrant derivative liability
    267,789       143,578       492,781       -       -       -       -  
      Deferred Revenue
    151,465       143,548       95,098       9,972       100,935       83       -  
Accrued interest expense
    6,296       5,028       22,866       16,948       1,068       121,964       101,470  
      Capital lease obligation, current portion
    10,239       10,098       9,959       10,615       10,319       10,319       9,290  
      Deferred rent, current portion
    3,207       2,906       2,605       -       -       -       -  
Total current liabilities
    15,194,551       12,729,691       10,738,514       9,474,232       7,050,037       6,098,742       8,232,032  
                                                         
        Deferred rent
    83,062       81,047       79,033       -       -       -       -  
        Capital lease obligation
    1,763       4,376       6,953       82,191       10,286       14,474       17,791  
        Deferred tax liability
    -       -       -       -       -       -       -  
        Liabilities held for sale - discontinued operations
    -       -       -       -       -       -       768,631  
Total liabilities
    15,279,376       12,815,114       10,824,500       9,556,423       7,060,323       6,113,216       9,018,454  
                                                         
Stockholders’ equity (deficit)
                                                       
Common Stock, $0.001 par value
    20,645       20,611       18,923       18,923       18,923       18,823       18,090  
Additional paid-in capital
    27,926,168       27,357,362       23,620,613       24,908,509       24,409,269       22,756,772       19,468,803  
Accumulated other comprehensive loss
    (1,061,354 )     (1,061,354 )     (197,704 )     (197,704 )     (197,704 )     -       -  
Deferred equity-based expense
    -       -       -       -       -       (150,919 )     (99,676 )
Accumulated deficit
    (14,513,268 )     (14,815,130 )     (13,780,887 )     (15,258,506 )     (14,606,277 )     (10,916,014 )     (6,968,284 )
Total stockholders’ equity
    12,372,191       11,501,488       9,660,945       9,471,222       9,624,211       11,708,662       12,418,933  
                                                         
Total liabilities and stockholders’ equity
  $ 27,651,567     $ 24,316,602     $ 20,485,445     $ 19,027,645     $ 16,684,534     $ 17,821,878     $ 21,437,387  
 
 
 

 
 
interCLICK, Inc.
                                         
(formerly Customer Acquisition Network Holdings, Inc.)
 
For the
   
For the
   
For the
   
For the
   
For the
   
For the
   
For the
 
Consolidated Statement of Cash Flows: 1Q08 to 3Q09
 
Nine Months Ended
   
Six Months Ended
   
Three Months Ended
   
Year Ended
   
Nine Months Ended
   
Six Months Ended
   
Three Months Ended
 
   
Sept. 30, 2009
   
Jun. 30. 2009
   
Mar. 31, 2009
   
Dec. 31, 2008
   
Sep. 30, 2008
   
Jun. 30, 2008
   
Mar. 31, 2008
 
Cash flows from operating activities:
                                         
   Net income (loss)
  $ (699,214 )   $ (1,001,076 )   $ 33,167     $ (12,025,539 )   $ (11,373,310 )   $ (7,683,047 )   $ (3,735,317 )
  Add back loss from discontinued operations
    1,220       1,220       1,220       4,807,622       3,111,767       1,560,154       716,986  
   Income (loss) from continuing operations
    (697,994 )     (999,856 )     34,387       (7,217,917 )     (8,261,543 )     (6,122,893 )     (3,018,331 )
Adjustments to reconcile income (loss) from continuing
                                                       
operations to net cash used in operating activities:
                                                       
   Stock-based compensation
    1,953,884       1,353,743       576,570       3,063,009       1,441,240       976,553       474,174  
   Change in fair value of warrant derivative liability
    356,272       232,061       72,767       -       -       -       -  
   Amortization of debt discount
    12,000       500       -       1,239,061       1,239,061       1,118,242       676,248  
   Equity method pick up from investment
    -       -       -       653,231       653,231       249,128       -  
   Amortization of intangible assets
    149,280       99,520       49,760       418,508       313,938       209,367       104,738  
   Provision for bad debts
    (87,084 )     (160,392 )     (207,767 )     414,737       252,236       102,236       4,800  
   Depreciation
    225,282       147,364       72,386       245,489       172,671       106,223       53,461  
   Common stock issued for services
    -       -       -       -       -       -       -  
   Amortization of deferred equity based expense
    -       -       -       -       -       -       -  
   Loss on sale of marketable securities
    36,349       36,349       -       116,454       116,454       -       -  
   Write off of deferred acquisition costs
    -       -       -       96,954       96,954       96,954       96,954  
   Amortization of debt issue costs
    24,972       21,583       14,444       44,172       77,505       77,505       47,027  
   Loss on settlement of debt
    -       -       -       20,121       20,121       20,121       -  
   Loss on disposal of property and equipment
    -       -       -       13,635       15,385       -       -  
Changes in operating assets and liabilities:
                                                       
   Accounts receivable
    (7,268,876 )     (2,968,432 )     (1,106,823 )     (4,144,746 )     (1,565,763 )     (136,399 )     985,908  
   Prepaid expenses and other current assets
    (155,341 )     (107,523 )     (92,687 )     (38,414 )     (150,046 )     12,459       (22,579 )
   Other assets
    (515 )     -       -       (124,727 )     (145,006 )     (38,665 )     -  
   Accounts payable
    2,219,724       1,083,434       (165,636 )     2,843,814       1,492,102       211,864       (65,477 )
   Accrued expenses
    1,377,328       292,816       289,230       (736,034 )     (436,329 )     53,989       (188,441 )
   Accrued interest
    2,614       1,346       5,918       (19,225 )     (35,105 )     85,791       65,297  
   Deferred rent
    13,573       11,257       8,942       72,696       -       -       -  
   Deferred revenue
    141,493       133,576       85,126       9,972       100,935       83       -  
Net cash used in operating activities
    (1,697,039 )     (822,654 )     (363,383 )     (3,029,210 )     (4,601,959 )     (2,977,442 )     (786,221 )
                                                         
Cash flows from investing activities:
                                                       
   Purchases of property & equipment
    (86,852 )     (73,883 )     (19,263 )     (357,006 )     (322,548 )     (177,991 )     (138,275 )
   Proceeds from sales of property & equipment
    -       -       -       13,000       13,000       13,000       13,000  
   Acquisition of business, net of cash acquired
    -       -       -       -       -       -       -  
   Proceeds from sales of marketable securities
    21,429       21,429       -       1,078,000       1,034,000       -       -  
   Deferred acquisition costs
    -       -       -       (10,619 )     (10,619 )     (10,619 )     (10,619 )
Net cash provided by investing activities
    (65,423 )     (52,454 )     (19,263 )     723,375       713,833       (175,610 )     (135,894 )
                                                         
Cash flows from financing activities:
                                                       
   Proceeds from issuance of notes payable
    -       -       -       1,300,000       1,300,000       -       -  
   Principal payments on notes payable
    (400,000 )     (100,000 )     -       (5,423,573 )     (4,523,573 )     (2,750,000 )     -  
   Proceeds from common stock and warrants issued for cash
    2,257,000       2,257,000       -       2,912,500       2,912,500       2,536,500       475,000  
   Proceeds from line of credit, net
    1,893,593       1,574,859       642,975       2,550,720       -       -       -  
   Debt issue costs
    -       -       -       -       -       -       -  
   Proceeds from convertible promissory notes
    -       -       -       -       -       -       -  
   Proceeds from issuance of common stock to founders
    -       -       -       -       -       -       -  
   Proceeds from exercise of options and warrants
    15,200       -       -       -       -       -       -  
   Principal payments on capital leases
    (8,108 )     (5,636 )     (3,198 )     (8,497 )     (8,002 )     (3,814 )     (1,526 )
Net cash provided by financing activities
    3,757,685       3,726,223       639,777       1,331,150       (319,075 )     (217,314 )     473,474  
                                                         
Cash flows from discontinued operations:
                                                       
   Cash flows from operating activities
    -       -       -       (1,933,382 )     (1,563,145 )     (1,251,172 )     (435,553 )
   Cash flows from investing activities-acquisition
    -       -       -       (1,885,624 )     (1,885,624 )     (1,605,921 )     (1,648,920 )
   Cash flows from investing activities-divestiture
    (250,000 )     (250,000 )     (250,000 )     1,302,079       4,591,676       3,000,000       -  
Net cash used in discontinued operations
    (250,000 )     (250,000 )     (250,000 )     (2,516,927 )     1,142,907       142,907       (2,084,473 )
                                                         
Net (decrease) increase in cash and cash equivalents
    1,745,223       2,601,115       7,131       (3,491,612 )     (3,064,294 )     (3,227,459 )     (2,533,114 )
                                                         
Cash and cash equivalents at beginning of period
    183,871       183,871       183,871       3,675,483       3,675,483       3,675,483       3,675,483  
                                                         
Cash and cash equivalents at end of period
  $ 1,929,094     $ 2,784,986     $ 191,002     $ 183,871     $ 611,189     $ 448,024     $ 1,142,369