XML 17 R6.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
CASH FLOW FROM OPERATING ACTIVITIES:    
Net loss $ (8,236,543) $ (5,058,818)
Adjustments to reconcile net loss to cash used for operating activities:    
Depreciation 59,129 59,717
Amortization of intangible assets 17,215 9,941
Amortization of resalable software license rights 843,287
Amortization of debt discount 1,416,040 288,774
Amortization of capitalized contract costs 111,467 102,839
Amortization of debt issuance costs 2,166,650 311,718
Operating leases right-of-use assets 151,325 (8,946)
Loss on extinguishment of debt 499,076
Amortization of beneficial conversion feature 641,215
Share-based and warrant compensation for employees and consultants 687,778 765,677
Share-based directors’ fees 22,010 28,512
Change in operating assets and liabilities:    
Accounts receivable (181,588) 800,698
Due from factor 47,679 5,980
Capitalized contract costs (29,808) (38,597)
Inventory 29,723 27,662
Resalable software license rights 5,044 40,857
Prepaid expenses and other (86,137) (45,000)
Accounts payable (530,011) 15,398
Accrued liabilities (193,146) (69,691)
Deferred revenue (135,707) 26,112
Operating lease liabilities (147,480) 14,667
Net cash used for operating activities (3,686,069) (1,879,213)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Issuance of note receivable (295,000)
Purchase of PistolStar (2,000,000)
Cash acquired from purchase of PistolStar 100,747
Proceeds from maturity of debt security 512,821
Purchase of intangible assets (1,736)
Purchase of debt security (516,121) (512,821)
Capital expenditures (6,094) (28,753)
Net cash used for investing activities (2,203,647) (543,310)
CASH FLOW FROM FINANCING ACTIVITIES:    
Proceeds from issuance of convertible notes 3,958,000 3,217,000
Repayment of convertible notes (4,509,250) (707,000)
Proceeds from issuance of common stock 22,174,425
Proceeds from the exercise of warrants 5,594,795
Costs to issue notes, common stock and warrants (2,693,022) (333,180)
Repayment of note payable - PistolStar (130,000)
Net repayments of loans payable to related parties (188,737)
Net cash provided by financing activities 24,206,211 2,176,820
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 18,316,495 (245,703)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 79,013 323,943
CASH AND CASH EQUIVALENTS, END OF PERIOD 18,395,508 78,240
Cash paid for:    
Interest 99,426
Income taxes
Noncash Investing and financing activities    
Accounts receivable acquired from PistolStar 184,792
Prepaid expenses acquired from PistolStar 9,485
Equipment acquired from PistolStar 36,467
Intangible assets acquired from PistolStar 1,480,000
Goodwill related to PistolStar acquisition 1,154,526
Issuance of note payable for PistolStar acquisition, net of working capital adjustment 356,000
Accrued expenses acquired from PistolStar 20,017
Deferred revenue acquired from PistolStar 590,000
Issuance of common stock pursuant to securities purchase agreements 277,833 595,000
Warrants issued with convertible notes 1,388,339 595,662
Issuance of common stock for conversion of note payable 3,789,000
Beneficial conversion feature 641,215
Deemed dividends related to down-round features 112,686
Operating lease liabilities under ASC 842 141,761 707,217
Accounting Standards Update 2016-02 [Member]    
Noncash Investing and financing activities    
Right-of-use asset addition under ASC 842 $ 141,761 $ 719,812