Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v3.19.2
Consolidated Statements of Cash Flows - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (8,472,985) $ (2,185,505)
Income from discontinued operations (460,943) 0
Loss from continuing operations (8,933,928) (2,185,505)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 163,409 90,827
Amortization of debt discount 176,000 296,860
Stock based compensation 1,647,802 418,692
Non-cash interest expense 696,013 0
Changes in operating assets and liabilities:    
Accounts receivable (102,789) (123,330)
Prepaid expenses and other assets (503,690) 2,270
Accounts payable and accrued expenses (79,850) (27,798)
Accrued interest 0 31,667
Deferred revenue (13,908) 122,689
NET CASH USED IN OPERATING ACTIVITIES - CONTINUING OPERATIONS (6,950,941) (1,373,628)
NET CASH PROVIDED BY OPERATING ACTIVITIES - DISCONTINUED OPERATIONS (1,131,108) 0
NET CASH USED IN OPERATING ACTIVITIES (8,082,049) (1,373,628)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (43,108) (6,600)
Capitalization of software costs (208,143) (111,184)
NET CASH USED IN INVESTING ACTIVITIES - CONTINUING OPERATIONS (251,251) (117,784)
NET CASH PROVIDED BY INVESTING ACTIVITIES - DISCONTINUED OPERATIONS 3,997,483 0
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 3,746,232 (117,784)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from the sale of common stock 300,000 0
Proceeds from the sale of Series H-4 preferred stock 6,000,000 0
Financing costs from the sale of Series H-4 preferred stock and warrants (101,661) 0
Proceeds from issuance of Series A Preferred Stock and subscription receivable 0 219,968
Proceeds from issuance of convertible notes and warrants 0 2,240,000
Offering costs - Convertible Notes 0 (208,200)
NET CASH PROVIDED BY FINANCING ACTIVITIES - CONTINUING OPERATIONS 6,198,339 2,251,768
NET CASH USED IN FINANCING ACTIVITIES - DISCONTINUED OPERATIONS (22,424) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 6,175,915 2,251,768
Net increase in cash 1,840,098 760,356
Cash, beginning of period 372,011 51,366
Cash, end of period 2,212,109 811,722
NON-CASH FINANCING ACTIVITIES:    
Fair value of stock warrants issued with convertible notes 0 978,158
Fair value of common stock sold to founders 0 137,900
Stock issued to WPCS Shareholder in the merger net of cash received of $4,947,023 4,845,200 0
Series H-4 offering cost paid in H-4 shares and warrants 568,468 0
Stock issued for convertible note payable 3,682,502 0
Stock issued for accrued interest on convertible note payable $ 159,584 $ 0