Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.23.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (5,156,478) $ (7,128,858)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization expense 89,219 45,967
Amortization of debt discount to interest expense 1,059,752 171,875
Interest expense for put premium on convertible notes 90,731
Default penalty included in interest expense 206,250
Stock-based compensation 1,039,943 4,085,868
Stock-based professional fees 298,571 478,129
Bad debt expense 7,716 39,355
Allowance for obsolete inventory 45,000
Gain on sale of property and equipment (5,500) (13,000)
Non-cash loss (gain) on debt extinguishment and inducement expense 343,895 (96,442)
Lease costs 1,080 (370)
Change in operating assets and liabilities:    
Accounts receivable (100,160) (73,180)
Inventory 5,485 17,288
Prepaid expenses and other assets (746) (13,211)
Contract assets 82,526 (50,106)
Due from related party 1,776
Accounts payable (49,709) 88,853
Accrued expenses 299,660 92,148
Accrued interest - related party 10,027
Customer deposit (110,000)
Accrued compensation 180,609 601,431
Contract liabilities 12,211 10,426
NET CASH USED IN OPERATING ACTIVITIES (1,584,918) (1,807,051)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Cash proceeds from sale of property and equipment 5,500 13,000
Cash received from acquisition 288,901
NET CASH PROVIDED BY INVESTING ACTIVITIES 5,500 301,901
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from note payable - related party 250,000
Proceeds from sale of series C preferred stock 550,000
Proceeds from note payable 903,760 500,000
Repayment of notes payable (157,149) (28,359)
Proceeds from convertible notes payable 160,000 680,000
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,156,611 1,701,641
NET (DECREASE) INCREASE IN CASH (422,807) 196,491
CASH, beginning of year 519,898 323,407
CASH, end of year 97,091 519,898
Cash paid for:    
Interest 479,509 53,283
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued as prepaid for services 217,250 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 55,655 47,146
Deemed dividend related to beneficial conversion feature of Series C preferred shares 4,354,761
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 and beneficial conversion features 680,000 680,000
Conversion of series C preferred stock to common stock 139,000 12,000
Increase in right of use and lease liability 184,375
Assets acquired:    
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