Annual report pursuant to Section 13 and 15(d)

Statements of Cash Flows

v3.20.1
Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net loss $ (4,300,969) $ (27,651,412)
Adjustments to reconcile from net loss to net cash used in operating activities:    
Depreciation 225,426 120,723
Amortization of debt discount and debt issuance cost 626,546 5,278,132
Change in fair value of warrant derivative (5,251,852) 14,336,425
Stock issued in settlement of litigation 939,538
Stock-based compensation expense 336,637 557,042
Stock issued in lieu of deferred salaries 650,100
Changes in operating assets and liabilities    
Accounts receivable, net (1,089,526) (832,446)
Factor receivables, net 1,368,793 120,563
Inventory (1,835,582) (281,243)
Prepaid assets (32,070) (169,500)
Other assets (179,674) 8,553
Accounts payable 573,970 (368,323)
Accrued expenses (563,260) (951,567)
Deferred revenue (107,776)
Net cash used in operating activities (10,229,337) (8,243,415)
Cash flows from investing activities:    
Purchases of property and equipment (1,031,115)
Net cash used in investing activities (1,031,115)
Cash flows from financing activities:    
Proceeds from sales of common stock, net of costs 11,671,735
Proceeds from sale of common stock of overallotment, net of costs 121,909
Proceeds from exercise of Series A warrants 2,172,680
Proceeds from exercise of Placement Agent warrants 16,818
Proceeds from sale of convertible preferred stock, net of costs 1,201,157
Cash repayments of notes payable (114,000)
Payment from advance from officer (200,000)
Proceeds from notes payable, net of costs 4,815,000 752,579
Proceeds (Repayments) of factor loan payable (1,178,867) 225,571
Net cash provided by financing activities 5,825,631 13,658,951
Net increase (decrease) in cash (5,434,821) 5,415,536
Cash, beginning of period 5,459,884 44,348
Cash, end of period 25,063 5,459,884
Supplemental disclosure of cash flow information:    
Interest 638,693
Income taxes 800
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of deferred salaries into common stock 650,100
Conversion of notes payable of officer into common stock 200,000
Conversion of notes payable into Class A Units 862,500
Conversion of convertible debentures into Class A Units 8,633,390
Conversion of convertible preferred stock into Class A Units 6,833,839
Issuance of Class B Warrants for capital raise 594,293
Accretion of redeemable convertible preferred stock dividend 3,667,620
Common stock deemed dividend 980,375
Issuance of warrants to investors 575,000
Issuance of warrants as compensation for capital raise 20,000
Issuance of common stock upon Series C preferred stock conversion 3,671,024
Issuance of common stock upon convertible note conversion 293,754
Issuance of Class D preferred stock upon convertible note conversion 4,816,485
Restricted promissory note in connection with convertible notes payable 4,780,000
Original issue discount 1,720,000
Conversion of Series B warrants into common stock $ 14,584,371