SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
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9 Months Ended |
12 Months Ended |
Sep. 30, 2022 |
Dec. 31, 2021 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Schedule of financial assets and liabilities measured at fair value on recurring basis |
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Fair Value Measurements |
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as of September 30, 2022 Using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
Liabilities: |
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Warrant liability |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
Contingent consideration |
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— |
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— |
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18,597,831 |
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18,597,831 |
Derivative liability |
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— |
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— |
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1,690,807 |
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1,690,807 |
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$ |
— |
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$ |
— |
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$ |
20,288,638 |
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$ |
20,288,638 |
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Fair Value Measurements |
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as of December 31, 2021 Using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
Liabilities: |
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Warrant liability |
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$ |
— |
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$ |
18,223 |
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$ |
— |
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$ |
18,223 |
Contingent consideration |
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— |
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— |
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12,179,476 |
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12,179,476 |
Derivative liability |
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— |
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— |
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2,294,720 |
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2,294,720 |
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$ |
— |
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$ |
18,223 |
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$ |
14,474,196 |
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$ |
14,492,419 |
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Fair Value Measurements as of |
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December 31, 2021 Using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
Liabilities: |
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Warrant liability |
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$ |
— |
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$ |
18,223 |
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$ |
— |
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$ |
18,223 |
Contingent consideration |
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— |
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— |
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12,179,476 |
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12,179,476 |
Derivative liability |
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— |
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— |
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2,294,720 |
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2,294,720 |
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$ |
— |
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$ |
18,223 |
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$ |
14,474,196 |
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$ |
14,492,419 |
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Fair Value Measurements as of |
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December 31, 2020 Using: |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
Liabilities: |
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Warrant liability |
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$ |
— |
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$ |
— |
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$ |
6,265 |
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$ |
6,265 |
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$ |
— |
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$ |
— |
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$ |
6,265 |
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$ |
6,265 |
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Schedule of changes in acquisition-related contingent consideration |
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Contingent |
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Consideration |
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Liability |
Outstanding as of December 31, 2021 |
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$ |
12,179,476 |
Change in fair value |
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6,418,355 |
Outstanding as of September 30, 2022 |
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$ |
18,597,831 |
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Bailey |
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$ |
10,698,475 |
Harper & Jones |
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7,899,356 |
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$ |
18,597,831 |
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Contingent |
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Consideration |
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Liability |
Balance as of December 31, 2020 |
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$ |
— |
Initial recognition in connection with acquisition of Harper & Jones |
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3,421,516 |
Stock price guarantee per consulting agreement |
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67,000 |
Conversion into shares |
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(73,500) |
Change in fair value |
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8,764,460 |
Outstanding as of December 31, 2021 |
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$ |
12,179,476 |
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Schedule of changes in derivative liability |
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Derivative |
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Liability |
Outstanding as of December 31, 2021 |
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$ |
2,294,720 |
Issuane of convertible notes |
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559,957 |
Conversion of underlying notes into common stock |
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(369,393) |
Change in fair value |
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(794,477) |
Outstanding as of September 30, 2022 |
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$ |
1,690,807 |
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Derivative |
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Liability |
Outstanding as of December 31, 2020 |
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$ |
— |
Initial fair value on issuance of convertible note |
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3,204,924 |
Change in fair value |
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(910,204) |
Outstanding as of December 31, 2021 |
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$ |
2,294,720 |
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Schedule of inventory |
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September 30, |
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December 31, |
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2022 |
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2021 |
Raw materials |
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$ |
435,025 |
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$ |
292,167 |
Work in process |
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256,078 |
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242,673 |
Finished goods |
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1,964,248 |
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2,220,519 |
Inventory |
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$ |
2,655,352 |
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$ |
2,755,358 |
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Schedule of potentially dilutive items outstanding |
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September 30, |
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2022 |
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2021 |
Convertible notes |
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1,177,305 |
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22,404 |
Series A convertible preferred stock |
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108 |
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— |
Common stock warrants |
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132,114 |
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35,913 |
Stock options |
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38,951 |
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38,751 |
Total potentially dilutive shares |
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1,348,477 |
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97,069 |
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December 31, |
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2021 |
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2020 |
Convertible notes |
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497,912 |
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— |
Series Seed Preferred Stock (convertible to common stock) |
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— |
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20,714,518 |
Series A Preferred Stock (convertible to common stock) |
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— |
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5,654,072 |
Series A-2 Preferred Stock (convertible to common stock) |
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— |
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5,932,742 |
Series CF Preferred Stock (convertible to common stock) |
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— |
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836,331 |
Series A-3 Preferred Stock (convertible to common stock) |
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— |
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9,032,330 |
Series B Preferred Stock (convertible to common stock) |
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— |
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20,754,717 |
Common stock warrants |
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35,801 |
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9,145 |
Preferred stock warrants |
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— |
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806,903 |
Stock options |
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38,951 |
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11,631 |
Total potentially dilutive shares |
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122,664 |
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63,752,389 |
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