Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.19.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Operating activities:    
Net loss $ (8,466,000) $ (8,193,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Fair value of common shares issued for services and vested stock options and warrants 2,880,000 2,961,000
Financing costs 1,625,000 172,000
Amortization of debt discount 1,647,000 748,000
Change in fair value of derivative liability (3,320,000) 840,000
Debt extinguishment, net (1,536,000) 423,000
Depreciation and amortization 1,025,000 16,000
Amortization of right-of-use assets 150,000
Inventory reserve 5,000
Allowance for doubtful accounts 31,000
Effect of changes in assets and liabilities:    
Accounts receivable (278,000) (3,000)
Inventory 90,000
Prepaid expenses 37,000 (22,000)
Other assets (41,000) 1,000
Accounts payable, accrued expenses, and accrued interest 280,000 253,000
Operating lease liability (109,000)
Deferred revenue (130,000) 3,000
Customer deposits (396,000)
Net cash used in operating activities (6,506,000) (2,801,000)
Investing Activities:    
Acquisition of subsidiary (15,000,000)
Cash acquired from acquisition of Verb Direct 557,000
Property & equipment purchases (134,000)
Net cash used in investing activities (14,577,000)
Financing Activities:    
Proceeds from convertible note payable 432,000 130,000
Proceeds from notes payable 1,300,000
Proceeds from related party note payable 58,000
Proceeds from sale of common stock 18,524,000 2,979,000
Proceeds from sale of preferred stock 4,688,000
Proceeds from exercise of put option 1,000,000
Proceeds from option exercise 34,000
Proceeds from warrant exercise 45,000 22,000
Payment of convertible notes payable (2,025,000) (845,000)
Payment of notes payable (630,000)
Payment of related party notes payable (58,000)
Deferred offering costs (130,000)
Repurchase common stock (20,000)
Net cash provided by financing activities 22,334,000 3,170,000
Net change in cash 1,251,000 369,000
Cash - beginning of period 634,000 11,000
Cash - end of period 1,885,000 380,000
Supplemental disclosures of cash flow information:    
Cash paid for interest 146,000 370,000
Cash paid for income taxes 800
Supplemental disclosure of non-cash investing and financing activities:    
Fair value of common stock issued upon acquisition of subsidiary 7,820,000
Conversion of note payable and accrued interest to common stock 1,184,000 3,066,000
Fair value of derivative liability from issuance of convertible debt, inducement shares and warrant features 6,561,000 150,000
Fair value of warrants issued and beneficial conversion feature to extinguish debt 719,000
Fair value of common shares, warrants and beneficial conversion feature of issued convertible note 592,000
Derecognition of deferred offering costs 162,000
Common stock issued to settle accounts payable 10,000
Common stock issued to settle accrued officers' salary 582,000
Recording of lease assets and liabilities upon adoption of ASC 842 $ 1,856,000