Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.21.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Cash Flows From Operating Activities:    
Net loss $ (7,885,660) $ (4,132,873)
Adjustments to reconcile net loss to net cash used in operating activities:    
Bad debt expense 7,593 285
Depreciation and amortization 315,202 17,131
Gain on forgiveness of accounts payable - supplier (236,248)  
Allowance for other asset   200,000
Stock-based compensation 468,216 27,275
Amortization of debt discount and debt issuance costs 915,994 625,310
Amortization of debt discount and debt issuance costs - related parties 357,201 75,635
Amortization of beneficial conversion feature 1,984,322  
Loss on extinguishment of convertible note payable 297,272  
Loss on settlement of other payables 23,601  
Gain on settlement of notes and other payables (148,600)  
Changes in operating assets and liabilities:    
Accounts receivable (1,342,643) 333,641
Prepaid expenses and other current assets (79,579) (28,072)
Other asset   (200,000)
Accounts payable - suppliers (191,125) (176,234)
Accounts payable - trade 211,922 601,708
Accrued expenses and other current liabilities 247,818 (36,206)
Accrued interest 196,572  
Accrued interest - related parties 53,026  
Net Cash Used In Operating Activities (4,805,116) (2,692,400)
Cash Flows From Financing Activities:    
Proceeds from sale of common stock and warrants in initial public offering, net [1] 11,503,488  
Payment of initial public offering issuance costs (841,376)  
Proceeds from sale of common stock and warrants in follow-on public offering, net 19,354,493  
Payment of follow-on public offering issuance costs (125,000)  
Proceeds from exercise of warrant 11,000  
Proceeds from issuance of convertible notes payable and investor warrants [2]   2,986,474
Advances from related party   29,905
Repayment of advance from related party (29,000) (45,905)
Proceeds from issuance of notes payable 406,190  
Repayment of notes payable (95,000) (90,427)
Proceeds from issuance of notes payable - related parties 835,000  
Payment of deferred offering costs   (56,367)
Repayment of note payable - related party (150,000)  
Net Cash Provided By Financing Activities 30,869,795 2,823,680
Cash Flows From Investing Activities:    
Purchase of intangible assets (1,300,336) (100,000)
Purchase of property and equipment (16,000) (5,013)
Advances to related party   (75,000)
Repayment of related party advances   75,000
Net Cash Used In Investing Activities (1,316,336) (105,013)
Net Increase In Cash 24,748,343 26,267
Cash - End of the Year 24,782,128 33,785
Cash - Beginning of the Year 33,785 7,518
Cash paid during the year for:    
Interest 574 7,346
Non-cash investing and financing activities:    
Conversion of notes payable and accrued interest into common stock 5,411,381  
Original issue discount in connection with convertible notes payable 285,000 285,000
Original issue discount in connection with convertible notes payable - related party 75,500 75,500
Issuance of investor and placement agent warrants in connection with issuance of convertible notes payable [3]   617,911
Accrual of initial public offering deferred offering costs   (228,829)
Accrual of follow-on offering deferred offering costs (339,581)  
Reduction of additional paid-in capital for initial public offering issuance costs that were previously paid 56,367  
Reversal of previously accrued deferred offering costs 218,829  
Forgiveness of related party liability $ 33,738  
Equity issuance costs - placement agent warrants   $ 24,033
[1] Includes gross proceeds of $12,503,750, less underwriting discounts and commissions of $1,000,262.
[2] Includes gross proceeds of $3,605,000, less issuance costs of $618,526 deducted directly from the offering proceeds.
[3] Net of issuance costs of $127,122.