Cash Flow Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) 3 Months Ended Mar. 31, 2020 Mar. 31, 2019 Cash Flows From Operating Activities: Net loss $ (2,945,503) $ (1,409,867) Adjustments to reconcile net loss to cash used in operations: Depreciation 26,727 0 Derivative (gain) loss (106,486) 1,454,729 Stock-based compensation 637,292 2,005,861 Bad debt expense 18,592 0 Inventory reserve 553,440 0 Amortization of prepaid stock-based expenses 195,299 0 Amortization of discount and debt issuance costs for convertible notes 268,350 339,806 Amortization of intangible assets 246,250 52,688 Deferred rent 3,418 0 Loss (gain) on settlement of debt 6,500 (3,007,629) (Increase) decrease in operating assets: Accounts receivable (236,360) 0 Accounts receivable - related party (88,800) 0 Inventory 387,271 (422,819) Advance to supplier - related party (1,017,225) Prepaid expenses and other current assets - current 88,240 (46,250) Prepaid expenses and other current assets - long term 15,959 0 Deposit 40,000 0 Increase (decrease) in operating liabilities: Accounts payable 552,292 233,560 Accounts payable - related party 0 (21,561) Accrued expenses 411,149 0 Unearned revenues (215,000) 0 Interest payable 9,005 4,952 Net Cash Used In Operating Activities (164,283) (1,833,755) Cash Flows From Investing Activities: Purchase of membership interest in subsidiary 0 (300,000) Purchase of property and equipment 0 (28,500) Net Cash Used In Investing Activities 0 (328,500) Cash Flows From Financing Activities: Advances from related party 85,000 0 Proceeds from sale of Common Stock 100,000 3,309,653 Payments of principal on notes payable 0 (11,129) Proceeds from issuance of notes payable 20,419 14,229 Payments of principal on convertible notes (50,000) (186,443) Proceeds from issuance of convertible notes, net of issuance cost 0 206,900 Net Cash Provided By Financing Activities 155,419 3,333,210 Net increase (decrease) in cash and cash equivalents (8,864) 1,170,955 Cash and cash equivalents at beginning of period 18,405 1,960 Cash and cash equivalents at end of period 9,541 1,172,915 Supplemental Cash Flow Information: Cash paid for interest 11,111 22,166 Cash paid for taxes 0 0 Non-Cash transactions investing and financing activity: Proceeds from sale of Series A preferred stock paid directly to settle debts 0 55,090 Convertible notes and interest payable settled by Series A preferred stock issued 0 849,360 Note payable, accrued expense and interest payable settled by common stock issued 0 40,616 Convertible notes settled by common stock issued 0 196,000 Common stock issued for purchase of membership interest in subsidiary 0 990,000 Increase in intangible assets for subscription payable 0 1,650,000 Initial beneficial conversion feature and debt discount on convertible notes 0 206,910 Preferred deemed dividend 0 904,450 Operating lease right-of-use assets and operating lease liabilities recorded upon adoption of ASC 842 0 310,093 Reduction of operating lease right-of-use asset and operating lease liabilities $ 116,887 $ 7,416 Source 10-Q PDF XBRL XLS PUBLISHED: JUNE 30, 2020
