v3.19.3
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash Flows from Operating Activities    
Net loss $ (11,615,750) $ (2,295,173)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 631,722 84,259
Amortization of debt discount 151,881
Interest and penalties on extension of short-term convertible notes 124,615
Stock-based compensation 1,783,886
Loss on write-off of inventory 5,205
Common stock issued for consulting services 95,533
Income from change in fair value adjustment of derivative liability - warrants (883,527)
Issuance of warrants to extend short-term debt 106,158
Bad debt expense 60,112
Changes in operating assets and liabilities, net of purchase transaction:    
Accounts receivable 63,707 (6,903)
Other receivables (28,724)  
Accounts receivable from related parties (8,824)
Prepaid expenses and other assets (140,304) 89,078
Interest payable (25,381) 98,286
Accounts payable 486,196 207,265
Accrued liabilities (102,099) (96,667)
Other current liabilities 354,340 (57,801)
Dividend payable (12,928)  
Deferred revenue 1,038,594 (391,938)
Net Cash Used in Operating Activities (7,906,764) (2,378,418)
Cash Flows from Investing Activities    
Purchases of property and equipment (17,238) (207,895)
Purchase of business, net of cash acquired (302,710)
assets not included in purchase transaction (69,629)
Net Cash Used in Investing Activities (389,577) (207,895)
Cash Flows from Financing Activities    
Payments on short-term related party notes (180,000) (4,944)
Proceeds from short-term related party notes 1,250,000
Payment of dividends (6,136)
Proceeds from debt obligations 277,519 50,020
Payment on debt obligations (130,377)
Proceeds from common stock 4,419,787
Proceeds from warrants 2,663,797
Proceeds from shareholder contributions 300,000
Proceeds from convertible debt to a related party 2,367,724
Net Cash Provided by Financing Activities 8,594,590 2,412,800
Net Increase (Decrease) in Cash 298,249 (173,513)
Cash - Beginning of period 69,628 251,330
Cash - End of period 367,877 77,817
Supplementary Cash Flow Information    
Cash paid for interest 132,937 20,900
Non-cash investing and financing activities    
Common stock issued to pay accrued dividends 12,928
Deemed dividends 436,976
Conversion of debt obligations to common stock 225,937
Conversion of debt obligations to warrants 74,063
Issuance of warrants to extend short-term debt 106,158
Conversion of short-term related party notes payable to common stock 114,000
Conversion of note and accrued interest to common stock and warrants 607
Interest and penalties on extension of short-term convertible notes 253,607
Dividends accrued 66,639
Repurchase of non-controlling interest $ 33,805

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