Supplemental Disclosure of Cash Flow Information

9 Months Ended

Sep. 30, 2012

Supplemental Disclosure of Cash Flow Information [Abstract]

Supplemental Disclosure of Cash Flow Information

13.  Supplemental Disclosure of Cash Flow Information

We did not disburse any cash for the payment of interest expense during either of the three or nine-month periods ended September 30, 2012 or 2011.

We disbursed $1,400 and $500 for the payment of income taxes during the three-month periods ended September 30, 2012 and 2011, respectively, and $3,100 and $2,000 for the payment of income taxes during the nine-month periods ended September 30, 2012 and 2011, respectively. All such disbursements were for the payment of foreign income taxes related to the operation of our Israeli subsidiary, GraphOn Research Labs Ltd.

During the nine-month period ended September 30, 2012, we capitalized $130,900 of property and equipment for which no cash was disbursed. We recorded $104,100 of such amount to long term liabilities – deferred rent, $24,000 of such amount to current liabilities – deferred rent, and the balance to accounts payable. During the nine-month period ended September 30, 2011, we capitalized $1,700 of stock-based compensation expense for which no cash was disbursed, as a component of capitalized software development costs. We did not capitalize any software development costs during the nine-month period ended September 30, 2012.

During the nine-month period ended September 30, 2011 we incurred costs associated with discontinued intellectual property operations activities of $106,800 of which $103,000 was disbursed, and the balance reported as component of accounts payable. During the nine-month period ended September 30, 2012 we incurred costs associated with the discontinued intellectual property activities of $468,400 for which $432,800 was disbursed, and the balance reported as a component accounts payable.