Supplemental Disclosure of Cash Flow Information

6 Months Ended

Jun. 30, 2013

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 the six-month periods ended June 30, 2013 or 2012.

We disbursed $1,800 and $1,700 for the payment of income taxes during the six-month periods ended June 30, 2013 and 2012, 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 six-month period ended June 30, 2013, we capitalized $36,700 of stock-based compensation expense for which no cash was disbursed, as a component of capitalized software development costs. We did not capitalize any stock based compensation expense costs during the six month period ended June 30, 2013.

During the six-month period ended June 30, 2013, we reduced our warrants liability by $6,072,600, of which $1,319,200 of the reduction was recorded in the Condensed Consolidated Statement of Operations. The remaining reduction amount, which was reclassified to equity occurred as a result of the amendment to the warrants and exercise of 917,500 warrants prior to the amendment.  No cash was disbursed in conjunction with these items (see Note 4).

During the three-month period ended June 30, 2012 we incurred costs associated with discontinued intellectual property operations activities of $90,900 of which $14,000 was disbursed, and the balance reported as component of accounts payable. During the six month period ended June 30, 2012 we incurred costs associated with discontinued intellectual property operations activities of $121,300 of which $37,000 was disbursed, and the balance reported as a component of accounts payable. During the six-month period ended June 30, 2012, we capitalized $143,000 of property and equipment for which no cash was disbursed. We recorded $104,100 of such amount to long term liabilities – deferred rent and the balance to accounts payable and accrued liabilities. – deferred rent $24,000 of such amount to current liabilities – deferred rent, and the balance to accounts payable. Also, we reported approximately $1,600 as other assets for which no cash was disbursed. We reported this amount as a component of accounts payable as of June 30, 2012.