XML 16 R6.htm IDEA: XBRL DOCUMENT v3.22.2.2
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities:    
Net loss $ (3,928,843) $ (4,437,210)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 1,556,752 395,968
Loss on disposal of asset 2,876
Bad debt expense 220,000 51,536
Inventory obsolescence 289,406 106,823
Share-based compensation 1,971,537 852,226
Accretion of earnout liabilities 173,116
Noncash lease expense 189,409 118,022
Loss on equity method investment 379,633 472,747
Benefit from deferred income taxes (5,844,796)
Changes in operating assets and liabilities:    
Accounts receivable, net (754,934) 101,916
Accounts receivable – related party 10,920 (171,441)
Inventory, net (451,838) (510,920)
Prepaid and other assets (69,490) (409,084)
Accounts payable (800,788) 50,140
Accounts payable – related parties (126,812) (91,454)
Accrued royalties and expenses 947,130 95,976
Accrued bonuses and commissions 1,516,858 464,658
Operating lease liabilities (189,990) (120,071)
Net cash used in operating activities (4,909,854) (3,030,168)
Cash flows from investing activities:    
Purchases of property and equipment (93,651) (30,157)
Proceeds from disposal of assets 894
Purchases of intangible assets (600,000) (578,586)
Investment in equity securities (250,000) (3,184,278)
Acquisitions, net of cash acquired (2,191,919)
Net cash used in investing activities (3,134,676) (3,793,021)
Cash flows from financing activities:    
Draw on line of credit 800,000
Pay off line of credit (800,000)
Public offering net proceeds 28,939,257
Net settlement of equity-based awards (102,931)
Distribution to noncontrolling interest member (220,000) (200,000)
Net cash flows provided by (used in) financing activities (322,931) 28,739,257
Net increase (decrease) in cash (8,367,461) 21,916,068
Cash, beginning of period 18,652,841 455,366
Cash, end of period 10,285,380 22,371,434
Cash paid during the period for:    
Interest 711
Supplemental noncash investing and financing activities:    
Equity issued for acquisitions 15,738,518 2,334,244
Earnout liabilities generated by acquisitions 6,882,151
Investment in equity securities converted in asset acquisition 1,803,440
License agreement as capital contribution from noncontrolling interest member $ 93,879