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INTERMEDIX HOLDINGS INC. AND SUBSIDIARIES <br />Consolidated Statements of Cash Flows <br />(In thousands) <br />Cash flows from operating activities: <br />Net loss <br />Adjustments to reconcile net loss to net cash (used in) provided by operating activities: <br />Depreciation and amortization of property, equipment, and computer software <br />Amortization of intangible assets <br />Amortization of debt issuance costs <br />Write -off of unamortized debt issuance costs on early extinguishment of debt <br />Stock -based compensation expense <br />Deferred income taxes <br />Benefit from income tax deduction in excess of recognized compensation <br />Bad debt expense <br />Straight -line rent accrual <br />Other noncash items <br />Changes in operating assets and liabilities, net of acquisitions: <br />Accounts and notes receivable <br />Income taxes receivable <br />Prepaid expenses and other current assets <br />Accounts payable and accrued expenses <br />Accrued interest expense <br />Accrued payroll and related benefits <br />Deferred revenue <br />Collections payable to clients <br />Other assets /liabilities <br />Net cash (used in) provided by operating activities <br />Cash flows from investing activities: <br />Cash paid to acquire Predecessor Company, net of cash acquired <br />Deposits <br />Capital expenditures <br />Expenditures for computer software and developed technology <br />Cost of business acquisitions <br />Investment activities <br />Net cash used in investing activities <br />Cash flows from financing activities: <br />Borrowings under revolving credit facility <br />Borrowings under senior term loans <br />Borrowings under subordinated debt facility <br />Repayments under revolving credit facility <br />Repayment of senior term loans <br />Repayment of capital lease obligations <br />Repayment of related party debt <br />Proceeds from issuance of common stock in Successor Company <br />Benefit from income tax deductions in excess of recognized compensation <br />Payment of debt issuance costs <br />Net cash provided by financing activities <br />Net increase (decrease) in cash and cash equivalents <br />Cash and cash equivalents, beginning of period <br />Cash and cash equivalents, end of period <br />Supplemental disclosures of cash flow information: <br />Cash paid (received) during the year for: <br />Interest <br />Income taxes <br />See accompanying notes to consolidated financial statements. <br />Period from <br />Period from <br />August 23, to <br />January 1, to <br />December 31, <br />August 22, <br />2010 <br />2010 <br />(Successor) <br />(Predecessor) <br />6 (14,374) <br />(19,955) <br />2,147 <br />2,571 <br />9,571 <br />8,523 <br />455 <br />362 <br />— <br />1,702 <br />816 <br />17,841 <br />(8,363) <br />1,068 <br />— <br />(3,221) <br />853 <br />(235) <br />44 <br />(20) <br />(301) <br />111 <br />(5,460) <br />613 <br />957 <br />(6,316) <br />50 <br />(3,765) <br />(815) <br />8,701 <br />665 <br />3,278 <br />1,330 <br />3,800 <br />1,902 <br />153 <br />6,702 <br />(6,077) <br />65 <br />249 <br />(3,756) <br />9,383 <br />(533,271) <br />— <br />10 <br />33 <br />(979) <br />(1,247) <br />(1,607) <br />(1,801) <br />— <br />(53,707) <br />(250) <br />— <br />(56,722) <br />(536,097) <br />16,500 <br />8,500 <br />195,000 <br />30,000 <br />85,000 <br />— <br />(2,000) <br />(8,500) <br />(488) <br />(313) <br />(78) <br />(151) <br />— <br />(655) <br />273,924 <br />- <br />- <br />3,221 <br />(8,209) <br />(1,101) <br />559,649 <br />31,001 <br />19,796 <br />(16,338) <br />— <br />35,096 <br />$ 19,796 <br />18,758 <br />$ 9,442 <br />4,584 <br />(929) <br />3,633 <br />