XML 118 R6.htm IDEA: XBRL DOCUMENT v3.24.4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net Loss $ (6,639,935) $ (4,790,597) $ (18,542,654) $ (13,830,371)
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities:        
Depreciation and amortization expense 914,493 375,918 590,691 103,194
Amortization of right-of-use assets 22,507 102,549 23,686 85,696
Bad debt expense (31,287) 836,300 11,850,788 5,621,938
Provision for extraordinary tax charges   579,387 (578,425)  
Shares issued in lieu of cash   96,888 96,888 175,941
Lease expense 235,659 178,893 365,639 210,463
Interest on finance leases 1,765 20,629 2,903 16,467
Stock-based compensation 1,103,200 214,505 577,931 24,401
Deferred income taxes   (1,923) 78,553 780,099
Gain on extinguishment of debt   (1,911,476) (1,910,967) (876,894)
Bargain purchase gain   (1,633,842) (1,440,249)  
Change in fair value of the derivative liability   (3,384) 3,384 20,257
Gain on net change in fair value of equity investments (2,518) (2,876) (4,584) (1,676)
Other income   (928) (928)  
Amortization of debt discounts and accretion of debt       1,619,838
Gain on forgiveness of accrued interest       (127,230)
Changes in assets and liabilities:        
Accounts receivable 2,392,104 (1,960,236) (5,484,213) (3,073,366)
Accounts receivable - related party (176,512) (416,814) 1,457,845 (170,815)
Inventory (46,301) (2,299,829) (890,903) (485,469)
Prepaid expenses and other assets (283,932) (1,856,642)    
Prepaid expenses and other current assets - related party (1,873,513) (2,312,324) (913,574) (375,311)
Loan receivable - related party       4,213,728
Prepaid expenses and other assets     (579,467) (894,893)
Accounts payable and accrued expenses (437,391) 206,746 644,838 2,092,104
Accounts payable and accrued expenses - related party 795,471 (112,233) 71,777 (357,681)
Accrued interest 17,531 (194,361) (115,668) (913,280)
Lease liabilities (234,834) (179,081) (373,816) (210,781)
Taxes payable   307,357 (128,801) (1,107,135)
Other current liabilities 910,885 (783,174) (1,359,180) (320,420)
Other liabilities (550,606) (1,047,178) (227,575) 1,338,013
NET CASH USED IN OPERATING ACTIVITIES (3,883,215) (16,587,726) (15,635,999) (14,870,639)
CASH FLOWS FROM INVESTING ACTIVITIES:        
Proceeds from loan receivable 550,565 609,455 806,464 351,474
Cash paid for the acquisition of Cana   (5,230,593) 5,230,593  
Loan receivable - related party   (168,469) 168,469  
Sale of intangible assets 1,999      
Advances for building's acquisition   (1,665,000) 1,665,000  
Purchase of intangible assets   (2,678,167) (6,189,564) (308,866)
Sale of fixed assets       12,736
Purchase of property and equipment (345,593) (1,266,490) (1,313,195) (74,207)
Purchase of marketable securities       (2,634)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 206,971 (10,399,264) (13,760,357) (21,497)
CASH FLOWS FROM FINANCING ACTIVITIES:        
Payment of convertible note payable   (100,000) (100,000) (525,000)
Payment of related party note payable       (421,373)
Payment of note payable (814,267) (1,494,867) (1,611,774) (12,479,735)
Proceeds from note payable 434,797 1,059,300 1,057,540 487,098
Payment of related party loan (7,609)     (4,824,035)
Proceeds from related party loan 15,218     3,625,007
Payment of lines of credit (19,504,594) (14,569,517) (19,532,735) (20,975,110)
Proceeds from lines of credit 18,831,043 14,218,787 20,193,343 22,354,567
Proceeds from issuance of Series A Preferred Stock       6,000,000
Proceeds from the issuance of common stock 649,039 9,950,037 10,000,017 35,275,573
Proceeds from the exercise of warrants 4,240,977   3,533,741 10,826,000
Payment of loans payable       (1,065,000)
Payments of finance lease liability (26,408) (118,847) (27,786) (99,906)
Proceeds from loans payable       65,000
Payments for purchase of treasury stock   (100,251) (100,452)  
Payments of financing fees (391,575) (442,892) (717,888) (3,194,798)
NET CASH PROVIDED BY FINANCING ACTIVITIES 3,426,621 8,401,750 12,694,007 35,048,288
Effect of exchange rate changes on cash (268,727) 196,161 (214,139) 307,044
NET CHANGE IN CASH (518,350) (18,389,079) (16,916,488) 20,463,196
CASH AT BEGINNING OF YEAR 3,833,195 20,749,683 20,749,683 286,487
CASH AT END OF YEAR 3,314,845 2,360,604 3,833,195 20,749,683
Cash paid during the year:        
Interest 198,194 317,449 406,885 588,051
Supplemental Disclosure of Non-Cash Investing and Financing Activities        
Conversion of notes payable to common stock       $ 973,420
Deemed dividend upon warrant exchange 6,195,024      
Closing of acquisition of Cloudscreen 637,080      
Common shares issued for acquisition of customer base   316,081 316,081  
Common stock issued to employees 372,303      
Common shares issued for acquisition of Cana   $ 138,667 138,667  
Common stock issued to consultants $ 727,570      
Deemed dividend reclassified upon elimination of its redemption provision     $ 372,414  
Conversion of convertible notes payable to common stock     15,000 386,588
Deemed dividend on warrants upon conversion of convertible debt     $ 7,218,485 $ 32,004,730
Deemed dividend on preferred stock and warrants upon trigger of downround feature       16,669,894
Deemed dividend upon cumulative dividend on preferred stock       372,414
Conversion of Series A preferred stock       5,452,300
Conversion of convertible debt       $ 38,144