Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash flows from operating activities:    
Net loss $ (17,366,866) $ (13,721,433)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 1,113,188 291,661
Amortization of loan discount and fees 2,818,174 580,684
Stock-based compensation 258,852 4,021,529
Fees incurred in connection with debt financings   132,609
Change in fair value of warrant liability (18,223) 72,445
Change in fair value of derivative liability (880,388)  
Change in fair value of contingent consideration 7,121,240 3,050,901
Forgiveness of Payroll Protection Program (1,760,755)  
Deferred income tax benefit   (1,100,120)
Change in credit reserve (5,053) 9,748
Changes in operating assets and liabilities:    
Accounts receivable, net (100,662) (261,386)
Due from factor, net 202,787 139,629
Inventory (128,255) 75,287
Prepaid expenses and other current assets (395,781) (688,893)
Accounts payable 435,110 575,513
Accrued expenses and other liabilities 1,461,572 262,019
Deferred revenue (55,034) (99,045)
Accrued compensation - related party   (88,550)
Accrued interest 690,624 151,465
Net cash used in operating activities (6,609,470) (6,595,937)
Cash flows from investing activities:    
Cash acquired (consideration) pursuant to business combination   (475,665)
Purchase of property, equipment and software   (10,276)
Deposits   (19,115)
Net cash used in investing activities   (505,056)
Cash flows from financing activities:    
Proceeds (repayments) from related party advances (172,036)  
Advances (repayments) from factor (142,436) 53,795
Proceeds from venture debt 237,500  
Issuance of loans payable 311,308 2,626,050
Repayments of convertible and promissory notes (3,068,750) (2,001,305)
Issuance of convertible notes payable 2,301,250 528,650
Issuance of common stock in public offering 9,347,450 10,000,002
Exercise of over-allotment option with public offering, net   1,364,997
Exercise of warrants   145,696
Offering costs (1,930,486) (2,116,957)
Net cash provided by financing activities 6,883,800 10,600,928
Net change in cash and cash equivalents 274,330 3,499,935
Cash and cash equivalents at beginning of period 528,394 575,986
Cash and cash equivalents at end of period 802,724 4,075,921
Supplemental disclosure of cash flow information:    
Cash paid for interest 191,152 460,179
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of notes and derivative liability into common stock 1,802,372 2,680,289
Right of use asset $ 201,681  
Warrants issued in connection with note 98,241  
Conversion of preferred stock into common stock   6,293
Conversion of related party notes and payables into common stock   257,515
Contingent consideration liability issued in connection with acquisition   $ 3,421,516