Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v3.20.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Cash Flows from Operating Activities          
Net loss $ 3,949,879 $ (2,623,663) $ (4,898,685) $ (11,615,750)  
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization     69,447 631,722  
Amortization of debt discount     1,395,007 151,881  
Interest and penalties on extension of short-term convertible notes     124,615  
Stock-based compensation     643 1,783,886  
Loss on write-off of inventory     5,205  
Common stock issued for consulting services     35,000 95,533  
Change in fair value adjustment of derivative liability - warrants     (2,986,853) (883,527)  
Change in fair value of redemption put liability (97,997) (272,705) $ (267,000)
Change in fair value of Derivative Liability - Day one derivative loss     2,306,121    
Issuance of warrants to extend convertible debt     17,636 106,158  
Bad Debt Expense     60,112  
Issuance of warrants to extend short-term debt     6,595  
Gain on conversion of short-term notes, related party     (1,300,088)  
Warrant modification expenses     70,851    
Changes in operating assets and liabilities, net of purchase transaction :          
Accounts receivable     20,167 63,707  
Other receivables     16,372 (28,724)  
Prepaid expenses and other assets     707,457 (140,304)  
Interest payable     35,565 (25,381)  
Accounts payable     (237,419) 486,196  
Accrued liabilities     (21,206) (102,099)  
Other current liabilities     (15,680) 354,340  
Dividend payable     (12,928)  
Deferred revenue     (409,375) 1,038,594  
Net Cash Used in Operating Activities     (5,461,140) (7,906,764)  
Cash Flows from Investing Activities          
Purchase of property and equipment     (2,285) (17,238)  
Purchase of business, net of cash acquired     (302,710)  
Net assets not included in purchase transaction     (69,629)  
Net Cash Used in Investing Activities     (2,285) (389,577)  
Cash Flows from Financing Activities          
Payments on short-term related party notes     (180,000)  
Proceeds from short-term related party notes     1,250,000  
Payment of dividends     (6,136)  
Proceeds from debt obligations     809,082 277,519  
Payment on debt obligations     (10,937) (130,377)  
Proceeds from issuance of common stock     4,419,787  
Proceeds from issuance of warrants     3,842,695 2,663,797  
Proceeds from shareholder contributions     300,000  
Proceeds from issuance of Preferred Stock Series D     100,000  
Proceeds from issuance Preferred Stock Series A, net of issuance costs     2,735,736  
Net Cash Provided by Financing Activities     7,476,576 8,594,590  
Net Increase in Cash     2,013,151 298,249  
Cash - Beginning of period     1,424,096 69,628 69,628
Cash - End of period $ 3,437,247 $ 367,877 3,437,247 367,877 $ 1,424,096
Supplementary Cash Flow Information          
Cash paid for interest     17,066 132,937  
Non-cash investing and financing activities          
Commons stock issued to pay accrued dividends     12,928  
Deemed Dividend on Series D Convertible Preferred Stock     314,926 436,976  
Conversion of debt obligations to Common Stock     225,937  
Conversion of Series D Preferred Stock to Common Stock     6,438,214  
Conversion of related party (Horne) warrants to equity     107,123  
Reclassification of Series B warrants to equity     73,805  
Reclassification of Series D warrants to equity     337,400  
Issuance of Common Stock in exchange for consulting fees     35,000  
Conversion of debt obligations to warrants     74,063  
Issuance of warrants to extend short-term debt     6,595 106,158  
Issuance of warrants pursuant to extension of convertible short-term notes     17,636  
Conversion of Series B Preferred Stock to Common Stock     153,097  
Conversion of short-term related party notes payable to Common Stock     114,000  
Conversion of short-term related party convertible notes to Preferred Stock     412,541  
Conversion of short-term convertible notes to Preferred Stock     4,751,484  
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 on Series B Preferred Stock     44,456 66,639  
Adjustment of exercise price on convertible debt     438,913  
Issuance of Common Stock in connection with extinguishment of short-term notes, related parties     218,414  
Issuance of Warrants in connection with Series D Convertible Preferred Stock     $ 31,902