Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.21.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,933,775) $ (2,619,752)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 33,878 11,141
Amortization of debt discount to interest expense 424,001
Accretion of preferred shares stated value to interest expense 52,400
Stock-based compensation 4,042,926 942,850
Stock-based professional fees 359,829 69,917
Bad debt expense 35,000 19,400
Interest expense related to put premium on convertible debt 47,405
Derivative expense 90,623
Non-cash gain on debt extinguishment (877,823)
Non-cash fees upon conversion 2,500
Lease costs (444) 401
Change in operating assets and liabilities:    
Accounts receivable (234,445) 60,079
Accounts receivable - related party (1,200)
Inventory (24,814) (27,985)
Prepaid expenses and other assets (6,647) 8,773
Costs and estimated earnings in excess of billings on uncompleted contracts (2,456)
Due from related party (24,179)
Accounts payable 155,241 55,721
Accrued expenses 83,231 88,771
Customer deposit (110,000)
Accrued compensation 317,001 518,736
Billings in excess of costs and estimated earnings on uncompleted contracts 22,179
NET CASH USED IN OPERATING ACTIVITIES (1,288,675) (1,132,842)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash received from acquisition 288,902
NET CASH PROVIDED BY INVESTING ACTIVITIES 288,902
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from sale of common stock 721,000
Proceeds from sale of series A preferred stock 120,000
Redemption of Series A preferred stock (104,762)
Proceeds from sale of series C preferred stock 550,000 630,000
Proceeds from note payable 500,000 156,200
Repayment of notes payable (5,297)
Proceeds from convertible notes payable 100,000
Repayment of convertible note payable (393,215)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,044,703 1,229,223
NET INCREASE IN CASH 44,930 96,381
CASH, beginning of period 323,407 77,211
CASH, end of period 368,337 173,592
Cash paid for:    
Interest 2,648 130,303
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued as prepaid for services 98,800 56,500
Common stock issued for accrued compensation 40,626 16,250
Series B preferred stock issued for accrued compensation 295,000
Common stock issued for accounts payable 117,838 6,058
Common stock issued for debt and accrued interest 188,529
Reclassification of put premium to equity 49,543
Preferred stock dividend accrued 34,029 2,795
Deemed dividend related to beneficial conversion feature of Series C preferred shares 4,354,761
Increase in debt discount and derivative liability 85,502
Increase in debt discount and paid-in capital for warrants 14,498
Assets acquired:    
Cash 288,902
Accounts receivable, net 40,587  
Inventory 68,019
Prepaid expenses 6,091
Property and equipment 140,210
Right of use assets 253,433
Total assets acquired 797,242
Less: liabilities assumed:    
Accounts payable 65,728
Accrued expenses 92,914
Notes payable 95,013
Customer deposit 110,000  
Lease liabilities 253,433
Noncontrolling interest 36,031
Total liabilities assumed 653,119  
Net assets acquired (144,123)  
Fair value of shares for acquisition 694,921  
Increase in intangible assets - non-cash $ 550,798