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, 2021
Dec. 31, 2020
Cash flows from operating activities    
Net loss $ (3,632,683) $ (5,825,622)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 967,967 1,710,226
Stock issued for prepaid consulting services 43,521 0
Stock issued for interest expense 356,109 0
Amortization of discount of notes payable 2,249,891 1,974,080
Amortization of debt issuance costs 121,957 122,291
Amortization of right to use assets 405,771 310,706
Amortization of patent rights 204,599 213,666
Depreciation expense 68,460 188,675
Gain on forgiveness of debt (600,677) 0
Loss (Gain) on change in fair value of profit share 531,435 (23,537)
Gain on sale of equipment 0 (35,859)
Changes in operating assets and liabilities    
Decrease in accounts receivable 101,029 106,792
Increase in inventory (515,274) (46,629)
Decrease in security deposits 2,080 0
Increase in prepaid expenses and other assets (59,841) (5,730)
Increase (Decrease) in accounts payable and accrued liabilities 655,755 (64,802)
(Decrease) Increase in accrued salaries (286,277) 491,610
(Decrease) Increase in accrued interest 0 33,164
Decrease in operating lease liability (407,842) (388,116)
Net cash provided by (used in) operating activities 205,980 (1,239,085)
Cash flows from investing activities    
Purchase of equipment (10,975) 0
Cash received from sale of equipment 0 42,500
Net cash (used in) provided by investing activities (10,975) 42,500
Cash flows from financing activities    
Payments of notes payable (32,788) (165,339)
Proceeds from the issuance of notes payable 0 499,300
Proceeds from exercise of options 126,250 0
Proceeds from exercise of warrants 246,808 0
Payment of convertible notes payable (10,000) 0
Payments of equipment notes payable (27,367) (45,646)
Proceeds from the issuance of notes payable 299,380 0
Net cash provided by financing activities 602,283 288,315
Net increase (decrease) in cash and cash equivalents 797,288 (908,268)
Cash and cash equivalents - end of year 1,388,307 591,019
Cash and cash equivalents - beginning of period 591,019 1,499,287
SUPPLEMENTAL CASH FLOW INFORMATION:    
Interest 0 534,960
Income taxes 0 0
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Common stock issued for conversion of convertible notes 4,440,000 0
Common stock issued for interest payable 615,339 0
Common stock issued for consulting services 43,521 102,000
Common stock issued for prepaid consulting services $ 156,979 $ 200,000