Financials

v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Current assets    
Cash $ 1,257,148 $ 1,388,307
Accounts receivable 3,298,449 1,015,053
Inventory 959,589 1,075,401
Prepaid expenses and other current assets (related party of $0 and $70,000) 562,805 312,008
Total current assets 6,077,991 3,790,769
Security deposits 10,175 10,175
Property and equipment, net 1,829,067 1,829,544
Right of use asset - operating lease 108,577 390,098
Intellectual property, net 1,960,747 2,114,197
Total assets 9,986,557 8,134,783
Current liabilities    
Accounts payable and accrued expenses (related party of $145,833 and $206,554) 3,086,097 2,267,711
Current portion of equipment notes payable 0 2,677
Current portion of operating lease liability 78,494 340,207
Customer credits 189,500 167,000
Accrued salaries 287,341 562,430
Short term debt - related party 250,000 0
Secured note payable - related party 0 271,686
Unsecured note payable, net of discount and issuance costs - related party 0 11,871,254
Total current liabilities 3,891,432 15,482,965
Operating lease liability 33,190 54,551
Secured note payable - related party 271,686 0
Unsecured note payable, net of discount and issuance costs - related party 12,666,657 0
Profit share liability - related party 3,312,896 2,836,743
Total liabilities 20,175,861 18,374,259
Stockholders' deficit    
Preferred stock, $0.001 par value: 2,000,000 shares authorized, no shares issued 0 0
Common stock; $0.001 par value; 150,000,000 shares authorized; 89,871,132 and 89,115,951 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively 89,871 89,116
Additional paid-in capital 57,773,207 56,788,321
Accumulated deficit (68,052,382) (67,116,913)
Total stockholders' deficit (10,189,304) (10,239,476)
Total liabilities and stockholders' deficit $ 9,986,557 $ 8,134,783

Source

v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)        
Revenues $ 7,485,972 $ 5,019,717 $ 15,956,439 $ 10,317,051
Costs and expenses:        
Cost of sales 5,104,887 3,240,507 10,810,365 6,221,073
Selling, general and administrative expenses (related party of $75,000, $75,000, $225,385, and $250,373) 1,325,460 1,342,140 4,285,638 4,060,294
Interest expense (related party of $317,510, $503,189, $1,319,752, and $1,504,152) 317,510 506,592 1,319,752 2,302,298
Loss on change in fair value of profit share 168,736 137,126 476,153 386,951
Gain on extinguishment of debt   0 0 (299,300)
Total costs and expenses 6,916,593 5,226,365 16,891,908 12,671,316
Income (Loss) before provision for income taxes 569,379 (206,648) (935,469) (2,354,265)
Benefit (Provision) for income taxes 0 0 0 0
Net income (loss) $ 569,379 $ (206,648) $ (935,469) $ (2,354,265)
Net income (loss) per common share - basic: $ 0.01 $ (0.00) $ (0.01) $ (0.03)
Weighted average common shares outstanding - basic 89,871,132 89,255,299 89,456,920 84,666,319
Net income (loss) per common share - diluted $ 0.01 $ (0.00) $ (0.01) $ (0.03)
Weighted average common shares outstanding - dilutive 93,530,946 89,255,299 89,456,920 84,666,319

Source

v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities    
Net loss $ (935,469) $ (2,354,265)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Stock-based compensation - amortization of prepaid services 196,042 447,107
Stock-based compensation 337,367 5,945
Amortization of discount of notes payable 1,204,488 1,777,243
Amortization of debt issuance costs 79,188 90,883
Amortization of right to use assets 281,521 302,503
Amortization of patent rights 153,450 153,450
Depreciation expense 11,204 56,824
Gain on forgiveness of debt 0 (299,300)
Loss on change in fair value of profit share 476,153 386,951
Changes in operating assets and liabilities    
Increase in accounts receivable (2,283,396) (1,950,439)
Decrease (Increase) in inventory 115,813 (149,591)
Increase in deferred revenue and customer credits 22,500 0
Increase in prepaid expenses and other assets (286,838) (37,154)
Decrease in security deposits 0 2,080
Decrease in accrued salaries (275,089) 0
Increase in accounts payable and accrued liabilities 818,386 1,565,786
Decrease in operating lease liability (283,074) (304,056)
Net cash used in operating activities (367,755) (306,033)
Cash flows from investing activities    
Purchase of property and equipment (10,727) 0
Net cash used in investing activities (10,727) 0
Cash flows from financing activities    
Payment of convertible note 0 (10,000)
Payments of notes payable 0 (34,661)
Payments of equipment notes payable (2,677) (21,750)
Proceeds from the issuance of short term debt - related party 250,000 0
Proceeds from exercise of warrants 0 246,808
Proceeds from exercise of stock options 0 101,250
Proceeds from the issuance of notes payable 0 299,380
Net cash provided by financing activities 247,323 581,027
Net (decrease) increase in cash and cash equivalents (131,159) 274,994
Cash and cash equivalents - beginning of period 1,388,307 591,019
Cash and cash equivalents - end of period 1,257,148 866,013
Cash paid during the period for:    
Interest 0 41,082
Taxes 13,213 4,518
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Stock issued for prepaid services 160,000 644,250
Stock issued for conversion of convertible notes 0 4,440,000
Stock issued for interest payable $ 0 $ 615,339

Source