Annual report pursuant to Section 13 and 15(d)

Statements of Cash Flows

Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:    
Net income (loss) $ (17,348,622) $ (4,300,969)
Adjustments to reconcile from net loss to net cash used in operating activities:    
Depreciation 626,652 225,426
Amortization of debt discount and debt issuance cost 820,877 626,546
Change in fair value of warrant derivative (5,251,852)
Stock-based compensation expense 425,264 336,637
Common stock issued for services 572,400
Amortization of capitalized contract costs 213,350
Loss on exchange transactions 1,810,712
Changes in operating assets and liabilities    
Accounts receivable, net (8,462,015) (1,089,526)
Factor receivables, net (633,606) 1,368,793
Inventory (6,699,848) (1,835,582)
Prepaid assets (963,056) (32,070)
Other assets 87,955 (179,674)
Accounts payable 4,252,603 573,970
Accrued expenses 234,164 (563,260)
Deferred revenue (107,776)
Net cash used in operating activities (25,063,170) (10,229,337)
Cash flows from investing activities:    
Proceeds from note receivable 3,000,000
Purchases of property and equipment (2,497,947) (1,031,115)
Net cash provided by (used in) investing activities 502,053 (1,031,115)
Cash flows from financing activities:    
Proceeds from sales of common stock and warrants, net of costs 27,285,715
Proceeds from exercise of Series A warrants 2,172,680
Proceeds from exercise of Placement Agent warrants 16,818
Proceeds from issuance of stock, net of costs 2,865,010
Cash paid in Exchange transaction (744,972)  
Borrowings from note payable - Paycheck Protection Program 399,300  
Repayment of notes payable - Paycheck Protection Program (399,300)
Proceeds from notes payable 4,815,000
Proceeds (repayments) from factor loan payable 465,305 (1,178,867)
Repayments of Series D Preferred Stock (3,140,154)
Net cash provided by financing activities 26,730,904 5,825,631
Net increase (decrease) in cash 2,169,787 (5,434,821)
Cash, beginning of period 25,063 5,459,884
Cash, end of period 2,194,850 25,063
Supplemental disclosure of cash flow information:    
Income taxes 800 800
Supplemental disclosure of non-cash investing and financing activities:    
Cashless exercise of warrants 244
Conversion of Series C Preferred Stock 13
Conversion of Series D Preferred Stock 2,971,311
Conversion of convertible note payable 2,906,134
Issuane of common stock for prepaid 572,400
Subscription receivable 837,025
Purchase of property and equipment included in accounts payable 165,744
Issuance of warrants in connection with convertible notes payable 575,000
Debt issuance costs paid with warrants 20,000
Issuance of common stock upon Series C preferred stock conversion 3,671,024
Issuance of common stock upon convertible note conversion 393,754
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