Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows

v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash Flows From Operating Activities:    
Net loss $ (5,727,918) $ (2,955,030)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 227,355 4,303
Bad debt expense 3,734 (10,670)
Gain on forgiveness of accounts payable - supplier (236,248)  
Allowance for other asset   200,000
Stock-based compensation: Stock options 15,993 15,894
Stock-based compensation: Common stock 62,484 30,800
Amortization of debt discount and debt issuance costs 915,994 444,928
Amortization of debt discount and debt issuance costs - related parties 357,201 27,541
Amortization of beneficial conversion feature 1,984,322  
Loss on extinguishment of convertible note payable 297,272  
Gain on settlement of notes and other payables (139,333)  
Changes in operating assets and liabilities:    
Accounts receivable (762,452) 288,830
Prepaid expenses and other current assets (89,013) (36,967)
Other asset   (200,000)
Accounts payable - suppliers (193,334) (180,514)
Accounts payable - trade 68,002 403,470
Accrued expenses and other current liabilities 492,372 13,304
Accrued interest 195,596  
Accrued interest - related parties 53,026  
Net Cash Used In Operating Activities (2,474,947) (1,954,111)
Cash Flows From Investing Activities:    
Purchase of intangible assets (855,019) (70,000)
Purchase of property and equipment (5,287) (2,449)
Advances to related party   (75,000)
Repayment of related party advances   75,000
Net Cash Used In Investing Activities (860,306) (72,449)
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 issuance of convertible notes payable and investor warrants [2]   2,127,401
Advances from related party   29,250
Repayment of advance from related party   (45,000)
Proceeds from issuance of notes payable 656,190  
Repayment of notes payable (95,000) (90,427)
Proceeds from issuance of notes payable - related parties 585,000  
Repayment of note payable - related party (150,000)  
Net Cash Provided By Financing Activities 11,658,302 2,021,224
Net Increase (Decrease) In Cash 8,323,049 (5,336)
Cash - Beginning of the Period 33,785 7,518
Cash - End of the Period 8,356,834 2,182
Cash paid during the period for:    
Interest 574 7,346
Non-cash investing and financing activities:    
Conversion of notes payable and accrued interest into common stock 16  
Original issue discount in connection with convertible notes payable 285,000 235,000
Original issue discount in connection with convertible notes payable - related party 75,500 15,000
Issuance of investor and placement agent warrants in connection with issuance of convertible notes payable   2,874,870
Accrual of intangible assets 644,981 30,000
Accrual of deferred offering costs   $ 211,684
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  
[1] Includes gross proceeds of $12,503,750, less underwriting discounts and commissions of $1,000,262.
[2] Includes gross proceeds of $2,500,000, less issuance costs of $372,599 deducted directly from the offering proceeds.