Quarterly report pursuant to sections 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
 3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Operating activities:    
Net loss $ (1,040,766) $ (153,326)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Depreciation and amortization 376,319 796,899
Deferred rent payable 113,371 (10,766)
Deferred taxes 140,333 17,395
Accrued interest on member loans    69,739
(Income) loss on equity method investments (114,408) (233,056)
Derivative expense 48,000  
Issuance of stock-based compensation 72,191   
Changes in operating assets and liabilities:    
Accounts receivable (515,411) (414,324)
Inventory 170,016 91,368
Prepaid expenses and other current assets (57,903) (624,543)
Security deposits 102,577 21,559
Other assets (111,324) (61,304)
Accounts payable (511,385) (322,338)
Accrued expenses 414,122 (378,151)
Deferred revenue 48,603 30,231
Net cash used in operating activities (865,665) (1,170,617)
Investing activities:    
Purchase of property and equipment (1,678,761) (1,274,196)
Investment 70,796 8,642
Due from related parties (75,255) (86,057)
Net cash used in investing activities (1,683,220) (1,351,611)
Financing activities:    
Cash overdraft 152,620 (174,531)
Proceeds from line of credit 1,900,278 3,050,000
Repayment of line of credit (1,863,175) (938,889)
Repayment of notes payable (5,000) (5,000)
Proceeds from member loans    500,000
Contributions from members    520,000
Distributions to members (97,658) (1,139)
Net cash provided by financing activities 87,065 2,950,441
Effect of exchange rate changes on cash 20,421 67,086
Net (decrease) increase in cash (2,441,399) 495,299
Cash and cash equivalents, beginning of year 11,681,086 1,043,730
Cash and cash equivalents, end of year 9,239,687 1,539,029
Supplemental disclosure of cash flow data:    
Interest paid 50,985 55,429
Income taxes paid $ 133,717 $ 61,363