Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities    
Net loss $ (1,581,476) $ (3,632,683)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:    
Stock-based compensation - amortization of prepaid services 263,646 0
Stock issued for interest expense 0 356,109
Stock-based compensation 408,034 967,967
Stock issued for consulting services 0 43,521
Amortization of discount of notes payable 1,438,615 2,249,891
Amortization of debt issuance costs 79,188 121,957
Amortization of right to use assets 338,535 405,771
Amortization of patent rights 204,600 204,599
Depreciation expense 11,679 68,460
Gain on forgiveness of debt 0 (600,677)
Loss on change in fair value of profit share (801,517) 531,435
Changes in operating assets and liabilities    
(Decrease) Increase in accounts receivable (1,762,554) 101,029
Decrease (Increase) in inventory 84,270 (515,274)
Increase in prepaid expenses and other assets (59,030) (59,841)
Decrease in security deposits 0 2,080
Decrease in accrued salaries (494,952) (286,277)
Increase in accounts payable and accrued liabilities 679,124 655,755
Decrease in operating lease liability (340,207) (407,842)
Net cash provided by operating activities 70,989 (205,980)
Cash flows from investing activities    
Purchase of property and equipment (10,727) (10,975)
Net cash used in investing activities (10,727) (10,975)
Cash flows from financing activities    
Payment of convertible note 0 (10,000)
Payments of notes payable 0 (32,788)
Payments of equipment notes payable (2,677) (27,367)
Proceeds from exercise of warrants 0 246,808
Proceeds from exercise of stock options 58,333 126,250
Proceeds from the issuance of notes payable 0 299,380
Net cash provided by financing activities 55,656 602,283
Net increase in cash and cash equivalents 115,918 797,288
Cash and cash equivalents - beginning of period 1,388,307 591,019
Cash and cash equivalents - end of period 1,504,225 1,388,307
Cash paid during the period for:    
Interest 52,643 0
Income taxes 0 0
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Common stock issued for prepaid services 53,333 156,979
Common stock issued for conversion of convertible notes 0 4,440,000
Common stock issued for interest payable 0 615,339
Common stock issued for consulting services $ 106,667 $ 43,521