Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.22.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (7,128,858) $ (4,434,443)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 45,967 14,093
Amortization of debt discount to interest expense 171,875 424,001
Accretion of preferred shares stated value to interest expense 52,400
Stock-based compensation 4,085,868 2,108,472
Stock-based professional fees 478,129 132,892
Bad debt expense 39,355 99,911
Allowance for obsolete inventory 45,000
Interest expense related to put premium on convertible debt 47,405
Gain on sale of property and equipment (13,000)  
Derivative expense 90,623
Non-cash gain on debt extinguishment (96,442) (877,823)
Non-cash fees upon conversion 2,500
Lease costs (370) 400
Change in operating assets and liabilities:    
Accounts receivable (73,180) (27,619)
Inventory 17,288 (62,380)
Prepaid expenses and other assets (13,211) (563)
Contract assets (50,106)
Due from related party 1,776 (5,526)
Accounts payable 88,853 139,300
Accrued expenses 92,148 96,022
Customer deposit (110,000)
Accrued compensation 601,431 417,308
Contract liabilities 10,426
NET CASH USED IN OPERATING ACTIVITIES (1,807,051) (1,783,027)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash proceeds from sale of property and equipment 13,000
Cash received from acquisition 288,901
NET CASH PROVIDED BY INVESTING ACTIVITIES 301,901
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from sale of common stock 821,000
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 1,330,000
Proceeds from exercise of stock options
Proceeds from note payable 500,000 156,200
Repayment of notes payable (28,359)
Proceeds from convertible notes payable 680,000 100,000
Repayment of convertible note payable (393,215)
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,701,641 2,029,223
NET INCREASE IN CASH 196,491 246,196
CASH, beginning of year 323,407 77,211
CASH, end of year 519,898 323,407
Cash paid for:    
Interest 53,283 130,399
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued as prepaid for services 98,800 133,000
Common stock issued for accrued compensation 40,626 24,250
Series B preferred stock issued for accrued compensation 295,000 318,969
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 8,508
Preferred stock dividend accrued 47,146 1,525,873
Deemed dividend related to beneficial conversion feature of Series C preferred shares 4,354,761 49,543
Increase in debt discount and derivative liability 85,502
Increase in debt discount and paid-in capital for warrants, shares and beneficial conversion 680,000 14,498
Conversion of series C preferred stock to common stock 12,000
ACQUISITION:    
Cash 288,901
Accounts receivable, net 59,726  
Inventory 68,019
Prepaid expenses 6,091
Contract assets 32,699
Property and equipment 140,211
Right of use assets 253,433
Total assets acquired 849,080
Less: liabilities assumed:    
Accounts payable 65,728
Accrued expenses 159,262
Notes payable 95,013
Customer deposit 110,000  
Lease liabilities 253,433
Noncontrolling interest 173,730
Total liabilities assumed 857,166  
Net liabilities assumed 8,086  
Fair value of shares for acquisition 694,921  
Increase in intangible assets - non-cash $ 703,007