Annual report pursuant to Section 13 and 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.20.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash Flows From Operating Activities:    
Net loss $ (10,224,506) $ (4,337,319)
Adjustments to reconcile net loss to cash used in operations:    
Depreciation 63,770 0
Derivative loss 1,871,583 828,694
Stock-based compensation 3,774,640 892,073
Bad debt expense 32,577 0
Impairment expense 1,087,346 0
Inventory reserve 723,391 0
Amortization of prepaid stock-based expenses 285,494 0
Amortization of discount and debt issuance costs for convertible notes 425,712 405,173
Amortization of intangible assets 828,526 0
Deferred rent 85,699 0
Loss on stock settelement 0 607,929
Gain on settlement of debt (3,004,630) 0
(Increase) decrease in operating assets:    
Accounts receivable (88,302) 0
Accounts receivable - related party (18,860) 0
Inventory (2,864,383) 0
Prepaid expenses and other current assets (140,765) (872)
Deposit (80,000) 0
Increase (decrease) in operating liabilities:    
Accounts payable 518,979 188,378
Accounts payable - related party 454,511 0
Accrued expenses 321,135 905,946
Unearned revenues 215,000 0
Settlement payable (20,000) (3,000)
Interest payable 6,793 47,243
Net Cash Used In Operating Activities (5,746,290) (465,755)
Cash Flows From Investing Activities:    
Purchase of membership interest in subsidiary (1,500,000) 0
Purchase of property and equipment (541,203) 0
Net Cash Used In Investing Activities (2,041,203) 0
Cash Flows From Financing Activities:    
Proceeds from sale of Series D preferred stock 0 50,000
Advances from related party 242,500 0
Repayments on related party advances (370,000) 0
Proceeds from sale of common stock 7,215,380 0
Payments of principal on notes payable (59,500) 0
Proceeds from issuance of notes payable 97,156 103,400
Payments of principal on convertible notes (186,443) (25,000)
Proceeds from issuance of convertible notes, net of issuance cost 864,845 178,100
Net Cash Provided By Financing Activities 7,803,938 306,500
Net increase (decrease) in cash and cash equivalents 16,445 (159,255)
Cash and cash equivalents at beginning of period 1,960 161,215
Cash and cash equivalents at end of period 18,405 1,960
Supplemental Cash Flow Information:    
Cash paid for interest 40,116 0
Cash paid for taxes 0 0
Non-Cash transactions investing and financing activity:    
Forgiveness of debt by officers and directors 0 1,355,372
Proceeds from sale of Series D preferred stock paid directly to settle amounts due to officers and directors 0 500,000
Proceeds from sale of Series A preferred stock paid directly to settle debts 55,090 0
Convertible notes and interest payable settled by Series A preferred stock issued 849,360 0
Note payable, accrued expense and interest payable settled by common stock issued 40,616 0
Convertible notes settled by common stock issued 196,000 46,295
Accounts payable settled by common stock issued 0 85,934
Common stock issued for purchase of membership interest in subsidiary 1,440,000 0
Common stock and preferred stock issued for prepaid services 3,495,380 0
Common stock issued pursuant to asset purchase agreement 70,000 0
Increase in intangible assets for subscription payable 250,000 0
Initial beneficial conversion feature and debt discount on convertible notes 670,467 236,500
Stock warrants granted as debt discount 194,388 0
Initial derivative liability on convertible notes 0 469,000
Fair value of common stock issued on conversion of notes 0 400,480
Fair value of common stock issued for settlement of accounts payable 0 343,735
Preferred deemed dividend 904,450 0
Operating lease right-of-use assets and operating lease liabilities recorded upon adoption of ASC 842 2,431,362 0
Reduction of operating lease right-of-use asset and operating lease liabilities 258,109 0
Prepaid expenses directly paid by a related party $ 35,000 $ 0