v3.23.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:    
Net loss $ (38,043,362) $ (32,357,957)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,226,376 1,220,736
Amortization of loan discount and fees 6,506,384 1,382,222
Stock-based compensation 602,038 4,800,337
Fees incurred in connection with debt financings 568,149 560,309
Change in fair value of warrant liability (18,223) 11,958
Change in fair value of derivative liability (1,354,434) (910,204)
Change in fair value of contingent consideration 564,303 8,764,460
Impairment of goodwill and intangible assets 15,539,332 3,400,000
Forgiveness of Payroll Protection Program (1,760,755) (407,994)
Change in credit reserve (118,840) 36,893
Deferred offering costs 367,696  
Deferred offering costs   367,696
Deferred income tax benefit   (1,100,120)
Changes in operating assets and liabilities:    
Accounts receivable, net (475,036) 150,288
Due from factor, net 655,708 (399,701)
Inventory 471,831 (911,293)
Prepaid expenses and other current assets (402,515) (151,917)
Accounts payable 919,131 456,690
Accrued expenses and other liabilities 1,992,649 834,489
Deferred revenue (74,268) 4,882
Due to related parties 278,590 (63,550)
Accrued interest 984,358 461,113
Net cash used in operating activities (10,570,889) (14,218,359)
Cash flows from investing activities:    
Cash acquired (consideration) pursuant to business combination (7,247,303) (5,936,757)
Purchase of property, equipment and software (5,533) (43,179)
Deposits (60,548) (31,117)
Net cash used in investing activities (7,313,384) (6,011,053)
Cash flows from financing activities:    
Repayments of related party notes (170,000)  
Advances (repayments) from factor (3,096) (41,200)
Repayment of contingent consideration (645,304)  
Proceeds from venture debt 237,500  
Issuance of loans payable 3,280,360 2,779,910
Repayments of convertible and promissory notes (7,437,349) (2,006,628)
Issuance of convertible notes payable 6,951,250 8,433,650
Proceeds from public offering 19,347,446 10,000,002
Proceeds from Issuance Initial Public Offering 19,347,446 10,000,002
Exercise of over-allotment option with public offering, net   1,364,997
Exercise of warrants   1,768,046
Offering costs (2,921,646) (2,116,957)
Net cash provided by financing activities 18,639,161 20,181,820
Net change in cash and cash equivalents 754,888 (47,592)
Cash and cash equivalents at beginning of period 528,394 575,986
Cash and cash equivalents at end of period 1,283,282 528,394
Supplemental disclosure of cash flow information:    
Cash paid for interest 734,869 902,089
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of notes into common stock   2,680,289
Conversion of notes, warrants and derivatives into common stock 11,983,389 2,680,289
Right of use asset 102,349  
Warrant and common shares issued with notes 1,368,741  
Derivative liability in connection with convertible note 559,957 3,204,924
Conversion of venture debt into preferred stock $ 6,300,000  
Conversion of related party notes and payables into preferred and common stock   257,515
Conversion of preferred stock into common stock   6,291
Conversion of contingent consideration into common stock   73,500
Common shares issued pursuant to equity line of credit   $ 367,696