Consolidated Statements of Cash Flows
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December 31, 2010 |
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December 31, 2009 |
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December 31, 2008 |
Wizzard Statement of Cash Flows |
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Cash Flows from Operating Activities |
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Net loss |
(4,110,459) |
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(6,509,017) |
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(7,691,878) |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Amortization of discount on notes payable |
344,294 |
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1,146,383 |
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552,767 |
Cashless exercise of warrants |
262,284 |
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1,306,168 |
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0 |
Compensation for extension of notes payable |
385,636 |
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0 |
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263,483 |
Stock for non cash expenses |
103,555 |
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619,092 |
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1,054,278 |
Non-cash compensation - options issued |
52,164 |
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38,371 |
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470,878 |
Impairment of goodwill |
0 |
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84,512 |
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555,567 |
Loss on disposal of assets |
0 |
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0 |
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7,207 |
Non-cash interest expense on notes payable |
68,739 |
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72,325 |
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161,513 |
Depreciation and amortization expense |
209,233 |
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342,733 |
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262,665 |
Change in allowance for bad debt |
0 |
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0 |
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16,638 |
Change in assets and liabilities: |
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Increase (Decrease) Accounts receivable |
41,945 |
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221,081 |
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92,501 |
Increase (Decrease) Prepaid expenses |
(11,610) |
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6,538 |
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(13,322) |
(Increase) Decrease Accounts payable |
102,956 |
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148,572 |
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(237,965) |
(Increase) Decrease Accrued expense |
121,739 |
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(144,313) |
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(43,664) |
(Increase) Decrease Deferred revenue |
6,366 |
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(45,426) |
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(6,096) |
Net Cash Used in Operating Activities |
(2,423,158) |
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(2,712,981) |
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(4,555,428) |
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Cash Flows from Investing Activities: |
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Purchase of property & equipment |
(42,530) |
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(13,886) |
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(184,928) |
Acquisition of iClipx |
0 |
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0 |
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(12,500) |
Acquisition of operations of PNPP |
0 |
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0 |
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(6,264) |
Net Cash Used in Investing Activities |
(42,530) |
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(13,886) |
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(203,692) |
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Cash Flows from Financing Activities: |
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Issuance of common stock |
1,975,000 |
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1,754,400 |
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0 |
Issuance of Notes Payable |
0 |
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0 |
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1,000,000 |
Dividend on Series A Preferred Stock |
0 |
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0 |
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(422,074) |
Payments on capital lease |
0 |
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0 |
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(26,726) |
Payments on notes payable |
0 |
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0 |
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(97,928) |
Net Cash Provided by (Used in) Financing Activities |
1,975,000 |
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1,754,400 |
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453,272 |
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Net Increase (Decrease) in Cash |
(490,688) |
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(972,467) |
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(4,305,848) |
Cash at Beginning of Period |
757,894 |
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1,730,361 |
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6,036,209 |
Cash at End of Period |
267,206 |
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757,894 |
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1,730,361 |
Supplemental Disclosures of Cash Flow Information |
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Cash paid during the periods for: |
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Interest |
112,023 |
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110,656 |
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21,203 |
Income taxes |
0 |
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0 |
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0 |
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Supplemental Disclosure of Non-Cash Investing and Financing Activities: |
For the Years Ended December 31, |
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2010 |
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2009 |
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2008 |
Compensation for re-pricing and extension of warrants |
262,284 |
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1,306,168 |
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- |
Value of stock issued upon exercise of options for services |
103,555 |
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491,592 |
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246,290 |
Value of stock issued to consultants |
- |
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127,500 |
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807,988 |
Amortization of discount on notes payable |
344,294 |
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1,146,383 |
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552,767 |
Compensation upon vesting of stock options granted |
52,164 |
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38,371 |
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470,878 |
Value of stock issued upon conversion of notes payable and related accrued interest |
889,839 |
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506,235 |
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749,702 |
Value of stock issued for acquisition of Webmayhem Inc. |
- |
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- |
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1,547,535 |
Value of stock issued for acquisition of the operations of PNPP |
- |
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- |
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127,661 |
Value of stock issued for acquisition of the operations of iClipx |
- |
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- |
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653,400 |
Value of stock issued for acquisition of the operations of Switchpod |
- |
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- |
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98,000 |
Value of stock issued for acquisition Developer Apps |
38,000 |
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367,020 |
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- |
Value of warrants issued for extension of notes payable |
385,636 |
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- |
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263,483 |
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During 2010, the company issued 455,000 common shares upon conversion of 182 shares of Series A Preferred Stock. |
On April 8, 2010, the Company changed the conversion price of the 5% Convertible Notes Payable from $0.40 per share to $0.25 per share. This resulted in the recording of a beneficial conversion feature valued at $195,202 |
On April 8, 2010, the Company closed a Subscription Agreement by which five institutional investors purchased 8,000,000 shares of Common Stock, par value $.001 and 5,000,000 warrants, for a total amount of $1,975,000, net of fees of $25,000. |
During 2009, the company issued 1,850,000 common shares upon conversion of 1,850 shares of Series A Preferred Stock. |
During 2009, the company issued 1,850,000 common shares upon conversion of 1,850 shares of Series A Preferred Stock. |
On September 19, 2009, the Company changed the conversion price of the 5% Convertible Notes Payable from $0.50 per share to $0.40 per share. This resulted in the recording of a beneficial conversion feature valued at $94,289 |
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On June 19, 2009, the Company changed the conversion price of the 5% Convertible Notes Payable from $1.00 per share to $0.50 per share. This resulted in the recording of a beneficial conversion feature valued at $451,990. |
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During 2008, the company issued 82,216 common shares upon conversion of 115 shares of Series A Preferred Stock and payment of $1,466 in dividend payable. |
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On December 2, 2008, the Company changed the conversion price of the 5% Convertible Notes Payable from $2.00 per share to $1.00 per share. This resulted in the recording of a beneficial conversion feature valued at $420,885 |
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On December 2, 2008, the Company amended the Series A Preferred Stock reducing the conversion price to common stock from $2.05 per share to $1.00 per share, and eliminating future cumulative dividends. Also, the company issued 252,734 common shares in payment of $177,421 in dividend payable. |
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The accompanying notes are an integral part of these financial statements. |
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