v3.20.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net loss $ (4,684,574) $ (1,893,276)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation expense 14,019 6,608
Interest expense - debt discount 195,201 0
Stock compensation expense 86,500 0
Derivative expense 634,766 0
Changes in fair value of derivative liability 415,297 0
Noncash lease expense (4,406) 0
Changes in assets and liabilities:    
Accounts receivable (20,259) (49,998)
Accounts receivables from fines and fees from merchant, net (2,776,687) 0
Prepaid and other current assets (4,830) (33,893)
Cash due from gateways, net (7,796,145) (630,699)
Accounts payable 377,476 95,049
Other current liabilities 5,699 9,401
Accrued interest 235,581 29,871
Payment processing liabilities, net 13,156,806 865,086
Deferred income 0 0
Net cash provided by (used in) operating activities (165,556) (1,601,851)
Cash flows from investing activities:    
Purchases of property and equipment (49,795) (31,254)
Net cash used in investing activities (49,795) (31,254)
Cash flows from financing activities:    
Borrowings from convertible debt 482,500 921,500
Repayments on convertible debt (496,500) 0
Repayment on long-term debt (75,000) 0
Borrowings from short-term notes payable 1,132,975 0
Repayments on short-term notes payable (359,304) 0
Proceeds from issuances of common stock 0 913,230
Net cash provided by financing activities 684,671 1,834,730
Net increase (decrease) in cash, cash equivalents, and restricted cash 469,320 201,625
Cash, cash equivalents, and restricted cash – beginning of year 284,978 83,353
Cash, cash equivalents, and restricted cash – end of year 763,110 284,978
Cash paid during the year for:    
Interest 266,304 152,868
Income taxes 800 800
Non-cash financing activities:    
Convertible debt conversion to common stock $ (150,000) $ 0