XML 183 R6.htm IDEA: XBRL DOCUMENT v3.20.4
Condensed Consolidated Statements of Cash Flows - USD ($)
5 Months Ended 7 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2018
Jul. 31, 2018
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net income (loss)     $ (3,349,778) $ (1,734,815)    
Adjustment to reconcile net income to net cash used in operating activities:            
Depreciation and amortization     1,003,070 404,995    
Amortization of debt issuance costs and accretion of debt discount     17,165    
Non-cash lease expense     317    
Goodwill impairment     $ 593,790 $ 0
Stock compensation expense     1,063,777 581,999    
Common stock issuable     822,116    
Shares issued pursuant to settlement agreement     (300,000)    
Change in operating assets and liabilities:            
Accounts payables and other accrued liabilities     208,471 (52,836)    
Accounts receivable     46,299 (132,047)    
Accounts receivable, related parties     7,131    
Other receivables     6,271 21,354    
Other payables     44,901 6,799    
Other non-current assets     (195,924) 1,316    
Prepaid expense and other current assets     (5,772) (40,809)    
Net cash used in operating activities     (1,454,072) (115,743)    
CASH FLOWS FROM INVESTING ACTIVITIES:            
Investment in NSURE, Inc.     (1,350,000)    
Earn-out liability     (11,317,240)    
Acquisition of business, net of cash acquired     (650,114)      
Purchase of property and equipment     (562,327)    
Net cash used in investing activities     (2,000,114) (11,879,567)    
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from borrowings of debt     7,912,000    
Principal repayments of debt     (245,178) (232,359)    
Loans acquired through acquisitions, related parties     19,401    
Proceeds from PPP loan     673,700    
Principal repayments of PPP loan     (165,000)    
Proceeds from loans payable, related parties     1,651,815 3,363,457    
Payments of loans payable, related parties     (165,980) (1,175,317)    
Issuance of common stock for acquisitions     1,866,667 2,568,364    
Net cash provided by financing activities     3,616,024 12,455,546    
Net increase in cash and restricted cash     161,838 460,236    
Cash and restricted cash at beginning of year     491,585 101,206 101,206  
Cash and restricted cash at end of year $ 101,206   653,423 561,442 491,585 101,206
SUPPLEMENTAL DISCLOSURE OF CASH AND NON-CASH TRANSACTIONS:            
Conversion of preferred stock into common stock     6,088    
Cash paid for interest     123,345 90,580    
Acquisition of lease asset and liability     133,204 461,504    
Cancellation of common stock shares pursuant to settlement agreement     576    
Successor [Member]            
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net income (loss) (1,155,286)       (3,495,481)  
Adjustment to reconcile net income to net cash used in operating activities:            
Depreciation and amortization 25,451       727,979  
Amortization of debt issuance costs and accretion of debt discount 1,138       13,949  
Non-cash lease expense       6,608  
Goodwill impairment       593,790  
Stock compensation expense 548,254       1,047,376  
Common stock issuable       822,116  
Shares issued pursuant to settlement agreement 306,981        
Change in operating assets and liabilities:            
Accounts payables and other accrued liabilities 98,654       54,572  
Accounts receivable       (103,822)  
Accounts receivable, related parties       (7,131)  
Note receivables       (3,825)  
Other receivables (17,319)       9,035  
Other payables 16,942       (8,591)  
Other non-current assets 33,716       1,800  
Prepaid expense and other current assets       (32,309)  
Net cash used in operating activities (141,469)       (373,934)  
CASH FLOWS FROM INVESTING ACTIVITIES:            
Note receivable, related parties        
Acquisition of business, net of cash acquired (1,066,500)       (11,317,325)  
Purchase of property and equipment (56,193)       (562,327)  
Net cash used in investing activities (1,122,693)       (11,879,652)  
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from borrowings of debt 1,025,000       7,982,005  
Principal repayments of debt (16,763)       (209,985)  
Debt issuance costs (25,506)       (216,125)  
Loans acquired through acquisitions       19,401  
Loans acquired through acquisitions, related parties       210  
Dividends paid        
Distributions to stockholders and members        
Issuance of loans payables, related parties 382,637        
Proceeds from notes payable, related parties       3,366,542  
Payment of notes payable        
Proceeds of notes payable, related parties       (866,447)  
Issuance of common stock for acquisitions       2,568,364  
Net cash provided by financing activities 1,365,368       12,643,965  
Net increase in cash and restricted cash 101,206       390,379  
Cash and restricted cash at beginning of year   $ 491,585 $ 101,206 101,206  
Cash and restricted cash at end of year 101,206     491,585 101,206
SUPPLEMENTAL DISCLOSURE OF CASH AND NON-CASH TRANSACTIONS:            
Conversion of preferred stock into common stock 10,000       10,000  
Cash paid for interest 26,915       414,645  
Acquisition of lease asset and liability       684,083  
Cancellation of common stock shares pursuant to settlement agreement       576  
Cancellation of common stock shares pursuant to issuance of common stock for acquisition of FIS       2,846  
Transfer of common stock shares to Reliance Global Holdings, LLC pursuant to transfer of ownership of SWMT and FIS       14,839  
Assumed earn-out liability pursuant to the issuance of shares in regard to the SWMT, FIS, and ABC Transactions       2,850,050  
Acquisition of loan payable, related party, pursuant to the purchase of software from The Referral Depot, LLC       200,000  
Acquisition of intangibles, net through issuance of shares 294,250        
Acquisition of goodwill through issuance of shares 853,796        
Assumed long-term debt pursuant to the issuance of shares in regard to the USBA and EBS Transactions 727,812        
Assumed loans payable, related party pursuant to the issuance of shares in regard to the USBA and EBS Transactions 459,688        
Predecessor [Member]            
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net income (loss)   58,321        
Adjustment to reconcile net income to net cash used in operating activities:            
Depreciation and amortization   1,778        
Amortization of debt issuance costs and accretion of debt discount          
Non-cash lease expense          
Goodwill impairment          
Stock compensation expense          
Common stock issuable          
Shares issued pursuant to settlement agreement          
Change in operating assets and liabilities:            
Accounts payables and other accrued liabilities   73,440        
Accounts receivable          
Accounts receivable, related parties          
Note receivables          
Other receivables          
Other payables          
Other non-current assets          
Prepaid expense and other current assets          
Net cash used in operating activities   133,539        
CASH FLOWS FROM INVESTING ACTIVITIES:            
Note receivable, related parties   (2,277)        
Acquisition of business, net of cash acquired          
Purchase of property and equipment          
Net cash used in investing activities   (2,277)        
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from borrowings of debt          
Principal repayments of debt          
Debt issuance costs          
Loans acquired through acquisitions          
Loans acquired through acquisitions, related parties          
Dividends paid   (48,154)        
Distributions to stockholders and members   (18,500)        
Issuance of loans payables, related parties          
Proceeds from notes payable, related parties          
Payment of notes payable   (5,217)        
Proceeds of notes payable, related parties   (24,414)        
Issuance of common stock for acquisitions          
Net cash provided by financing activities   (96,285)        
Net increase in cash and restricted cash   34,977        
Cash and restricted cash at beginning of year $ 58,588 23,611       $ 23,611
Cash and restricted cash at end of year   58,588        
SUPPLEMENTAL DISCLOSURE OF CASH AND NON-CASH TRANSACTIONS:            
Conversion of preferred stock into common stock          
Cash paid for interest   2,164        
Acquisition of lease asset and liability          
Cancellation of common stock shares pursuant to settlement agreement          
Cancellation of common stock shares pursuant to issuance of common stock for acquisition of FIS          
Transfer of common stock shares to Reliance Global Holdings, LLC pursuant to transfer of ownership of SWMT and FIS          
Assumed earn-out liability pursuant to the issuance of shares in regard to the SWMT, FIS, and ABC Transactions          
Acquisition of loan payable, related party, pursuant to the purchase of software from The Referral Depot, LLC          
Acquisition of intangibles, net through issuance of shares          
Acquisition of goodwill through issuance of shares          
Assumed long-term debt pursuant to the issuance of shares in regard to the USBA and EBS Transactions          
Assumed loans payable, related party pursuant to the issuance of shares in regard to the USBA and EBS Transactions