XML 16 R6.htm IDEA: XBRL DOCUMENT v3.23.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (4,790,597) $ (3,010,684)
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities:    
Depreciation and amortization expense 375,918 273,415
Amortization of right-of-use assets 102,549 60,934
Amortization of debt discounts and accretion of debt 0 772,180
Bad debt expense 836,300 0
Provisions for extraordinary tax charges 579,387 0
Shares issued in lieu of cash 96,888 0
Lease expense 178,893 158,406
Interest on finance leases 20,629 11,645
Stock-based compensation 214,505 27,221
Deferred income taxes (1,923) 490,460
Gain on extinguishment of debt (1,911,476) (1,004,124)
Bargain purchase gain (1,633,842) 0
Change in fair value of the derivative liability (3,384) 6,627
Gain on net change in fair value of equity investments (2,876) (415)
Other income (928) 0
Changes in assets and liabilities:    
Accounts receivable (1,960,236) (2,255,383)
Accounts receivable - related party (416,814) 481,941
Inventory (2,299,829) (1,392,884)
Prepaid expenses and other assets (1,856,642) 117,498
Prepaid expenses and other current assets - related party (2,312,324) (1,413,967)
Accounts payable and accrued expenses 206,746 1,692,704
Accounts payable and accrued expenses - related party (112,233) (216,456)
Accrued interest (194,361) 881,347
Lease liabilities (179,081) (158,788)
Taxes payable 307,357 (101,909)
Other current liabilities (783,174) 27,900
Other liabilities (1,047,178) 0
NET CASH USED IN OPERATING ACTIVITIES (16,587,726) (4,552,332)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from loan receivable 609,455 267,205
Cash paid for the acquisition of Cana (5,230,593) 0
Loan receivable - related party (168,469) 0
Sale of fixed assets 0 12,859
Advances for building's acquisition (1,665,000) 0
Purchase of intangible assets (2,678,167) (311,859)
Purchase of property and equipment (1,266,490) (37,137)
NET CASH USED IN INVESTING ACTIVITIES (10,399,264) (68,932)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Payment of convertible note payable (100,000) 0
Payment of note payable (1,494,867) (2,454,143)
Proceeds from note payable 1,059,300 490,365
Payment of related party loan 0 (557,361)
Proceeds from related party loan 0 973,424
Payment of lines of credit (14,569,517) (16,348,941)
Proceeds from lines of credit 14,218,787 17,206,099
Proceeds from issuance of Series A Preferred Stock 0 5,452,300
Proceeds from the issuance of common stock 9,950,037 0
Financing fees from the sale of common stock (442,892) 0
Payments of finance lease liability (118,847) (71,172)
Payments of financing fees 0 (212,728)
Payments for purchase of treasury stock (100,251) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 8,401,750 4,477,843
Effect of exchange rate changes on cash 196,161 169,318
NET CHANGE IN CASH (18,389,079) 25,898
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 20,749,683 286,487
CASH AND CASH EQUIVALENTS AT END OF PERIOD 2,360,604 312,385
Cash paid during the year:    
Interest 371,846 317,449
Income tax $ 0 0
Supplemental Disclosure of Non-Cash Investing and Financing Activities    
Common shares issued for acquisition of customer base 316,081  
Common shares issued for acquisition of Cana 138,667  
Conversion of notes payable to common stock $ 0 $ 973,420
Conversion of convertible notes payable to common stock   959,025
Deemed dividend on warrants upon conversion of convertible debt 0 $ 5,788,493
Deemed dividend on preferred stock and warrants upon trigger of downround feature 0 16,669,894
Deemed dividend upon cumulative dividend on preferred stock 0 372,414
Conversion of Series A preferred stock 0 2,427,693
Conversion of convertible debt $ 0 $ 38,144