Actual

July 31, 2013

Adjustments

Pro-Forma

July 31, 2013

Assets

Current assets:

Cash

$

1,340,888

$

(15,000

) 

$

1,325,888

Accounts receivable, net

780,960

(691,242

)

89,718

Prepaid expenses and other current assets

87,513

(30,852

) 

56,661

Total current assets

2,209,361

(737,094

) 

1,472,267

Property and equipment, net

46,838

—

46,838

Goodwill

1,581,850

(1,581,850

)

—

Patent

4,024,385

(4,024,385

) 

—

Other assets

28,032

—

28,032

TOTAL ASSETS

$

7,890,466

$

(6,343,329

) 

$

1,547,137

Liabilities and Stockholders’ Deficit

Current liabilities:

Accounts payable

$

1,291,450

$

(194,123

) 

$

1,097,327

Accrued expenses

879,087

(494,249

) 

384,838

Notes payable, current portion, net

3,427,007

(3,410,691

) 

16,316

Notes payable related parties, current portion, net

1,072,953

(945,493

) 

127,460

Lease payable, current portion

10,704

—

10,704

Deferred revenue

239,247

(179,586

) 

59,661

Warrants

906,621

(906,621

) 

—

Total current liabilities

7,827,069

(6,130,763

) 

1,696,306

Long-term liabilities:

Notes payable, net of current portion, net

1,281,921

(1,281,921

) 

—

Notes payable related parties

1,301,913

(1,092,422

) 

209,491

Lease payable, net of current portion

6,623

—

6,623

Total liabilities

10,417,526

(8,505,106

) 

1,912,420

Commitments and Contingencies

Stockholders’ deficit:

Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding

—

—

—

Common stock, $0.001 par value

157,313

—

157,313

Additional paid-in capital

11,791,080

(11,141,027

) 

650,053

Accumulated deficit

(14,475,453

)

13,302,804

(1,172,649

)

Total stockholders’ deficit

(2,527,060

(2,161,777

)

(365,283

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

$

7,890,466

$

(6,343,329

) 

$

1,547,137