TRX INC/GA

Statement of Cash Flows—Cash paid for interest was $214 and $398 for the nine months ended September 30, 2012 and 2011, respectively. Cash paid for income taxes was $270 and $107 for the nine months ended September 30, 2012 and 2011, respectively.

Litigation—We expect to be a party from time to time to certain routine legal proceedings arising in the ordinary course of our business. Although we are not currently involved in any litigation, we cannot accurately predict the outcome of any such proceedings in the future.

In conjunction with the execution of the Agreement, TRX and nuTravel also entered into a Transition Services Agreement (the “Services Agreement”), which was amended in 2012. Under the terms of the amended Services Agreement, TRX provided certain transition and technical services at an annualized rate of $1,800 to support the continued operation of the RESX services and to facilitate the orderly and effective transition of the RESX services from TRX to nuTravel. Effective April 30, 2012, the amended Services Agreement was terminated.

Income tax provision. The increase for the nine months ended September 30, 2012 compared to the same period in the prior year was primarily related to higher foreign earnings, a higher tax rate on Indian earnings, and the accrual of German withholding tax. Foreign earnings for the nine months ended September 30, 2012 were higher than the same period in the prior year. Also, the Indian tax rate holiday ended on March 31, 2011. Therefore, the Indian earnings in 2012 were subject to the regular Indian tax rate of 30% for the entire nine months ended September 30, 2012, as opposed to only three months at that rate for the nine months ended September 30, 2011. Additionally, the Company accrued withholding tax expense for the nine months ended September 30, 2012 for the potential repatriation of German earnings; no such accrual was made for the same period in the prior year.

Net cash used in operating activities was $0.5 million during the nine months ended September 30, 2012, compared to net cash provided by operating activities of $4.1 million during the nine months ended September 30, 2011. Cash provided during 2011 was higher primarily due to improved collections and the return of a deposit related to the relocation of our India operations center, as well as reduced prepayments on hand from Expedia during 2012 due to reduced services with this client.