Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.20.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Operating Activities:    
Net loss $ (15,918,000) $ (12,127,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Fair value of common shares issued for services and vested stock options 4,178,000 3,415,000
Financing costs 1,625,000 798,000
Amortization of debt discount 1,658,000 1,468,000
Change in fair value of derivative liability (1,862,000) 1,167,000
Debt extinguishment costs, net (1,536,000) 534,000
Depreciation and amortization 1,042,000 20,000
Amortization of right-of-use assets 349,000
Inventory reserve (14,000)
Allowance for doubtful account 199,000
Effect of changes in assets and liabilities:    
Accounts payable, accrued expenses, and accrued interest 2,123,000 609,000
Deferred incentive compensation 1,042,000
Inventory 127,000
Operating lease liability (220,000)
Other assets (41,000) 2,000
Deferred revenue (51,000)
Customer deposits (428,000)
Accounts receivable (380,000) (1,000)
Prepaid expenses (11,000) (42,000)
Net cash used in operating activities (8,118,000) (4,157,000)
Investing Activities:    
Acquisition of subsidiary (15,000,000)
Cash acquired from acquisition of subsidiary 557,000
Purchases of property and equipment (146,000)
Net cash used by investing activities (14,589,000)
Financing Activities:    
Proceeds from sale of common stock 18,525,000 2,979,000
Proceeds from sale of preferred stock 4,688,000
Proceeds from notes payable 1,300,000
Advances on future receipts 728,000
Proceeds from convertible note payable 432,000 1,772,000
Proceeds from exercise of put option 1,000,000
Proceeds from option exercise 34,000
Proceeds from warrant exercise 45,000 22,000
Proceeds from related party note payable 58,000
Payment of convertible notes payable (2,025,000) (845,000)
Payment of notes payable (630,000)
Payment of related party notes payable (58,000)
Payment of advances of future receipts (7,000)
Deferred offering costs (162,000)
Repurchase common stock (20,000)
Net cash provided by financing activities 23,056,000 4,780,000
Net change in cash 349,000 623,000
Cash - beginning of period 634,000 11,000
Cash - end of period 983,000 634,000
Supplemental disclosures of cash flow information:    
Cash paid for interest 146,000 402,000
Cash paid for income taxes 2,000 1,000
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 1,410,000 3,066,000
Common stock issued to settle accrued officer's salary 582,000
Fair value of derivative liability from issuance of convertible debt, inducement shares and warrant features 6,561,000 1,694,000
Fair value of common shares, warrants and beneficial conversion feature of issued convertible note 592,000
Offset of deferred offering costs to proceeds received 162,000
Common stock issued to settle accounts payable 10,000
Assets acquired from the acquisition of Verb Direct, LLC 3,364,000  
Liabilities assumed from the acquisition of Verb Direct, LLC $ 3,221,000