Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.22.2.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (3,875,161) $ (5,933,775)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 68,230 33,878
Amortization of debt discount to interest expense 910,907
Stock-based compensation 1,025,571 4,042,926
Stock-based professional fees 228,946 359,829
Bad debt expense 7,716 35,000
Non-cash loss on debt extinguishment 231,395
Lease costs 586 (444)
Change in operating assets and liabilities:    
Accounts receivable (86,571) (234,445)
Accounts receivable - related party   (1,200)
Inventory (1,287) (24,814)
Prepaid expenses and other assets 23,763 (6,647)
Contract assets 82,805 (2,456)
Due from related party (24,179)
Accounts payable (8,721) 155,241
Accrued expenses 122,074 83,231
Accrued interest payable - related party 6,247
Customer deposit (110,000)
Accrued compensation 26,927 317,001
Contract liabilities 53,462 22,179
NET CASH USED IN OPERATING ACTIVITIES (1,183,111) (1,288,675)
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 series C preferred stock 550,000
Proceeds from note payable - related party 250,000
Proceeds from note payable 641,260 500,000
Repayment of notes payable (75,480) (5,297)
NET CASH PROVIDED BY FINANCING ACTIVITIES 815,780 1,044,703
NET (DECREASE) INCREASE IN CASH (367,331) 44,930
CASH, beginning of period 519,898 323,407
CASH, end of period 152,567 368,337
Cash paid for:    
Interest 15,287 2,648
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued as prepaid for services 193,250 98,800
Common stock issued for accrued compensation 40,626
Series B preferred stock issued for accrued compensation 278,654 295,000
Common stock issued for accounts payable 2,174 117,838
Preferred stock dividend accrued 41,811 34,029
Deemed dividend related to ratchet provision 4,435
Deemed dividend related to beneficial conversion feature of Series C preferred shares 2,845,238
Increase in debt discount and paid-in capital for shares issued with convertible debt 110,631
Increase in debt discount and paid-in capital for warrants issued with convertible debt 325,785
Conversion of series C preferred stock to common stock 114,000
Increase in right of use and lease liability 184,375
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 liabilities assumed   (144,123)
Fair value of shares for acquisition 694,921
Increase in intangible assets - non-cash $ 550,798