Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v3.19.2
Consolidated Statements of Cash Flows - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (11,801,758) $ (5,088,430)
Income from discontinued operations (377,207) 0
Loss from continuing operations (12,178,965) (5,088,430)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 257,440 136,403
Bad debt provision 0 42,057
Amortization of debt discount 176,000 638,370
Stock based compensation 2,435,538 709,000
Non-cash interest expense 696,013 0
Changes in operating assets and liabilities:    
Accounts receivable (4,399) (138,582)
Prepaid expenses and other assets (335,514) (39,844)
Accounts payable and accrued expenses 95,756 565,286
Accrued interest 0 70,803
Deferred revenue (213,218) 125,174
NET CASH USED IN OPERATING ACTIVITIES - CONTINUING OPERATIONS (9,071,349) (2,979,763)
NET CASH USED IN OPERATING ACTIVITIES - DISCONTINUED OPERATIONS (995,250) 0
NET CASH USED IN OPERATING ACTIVITIES (10,066,599) (2,979,763)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (43,108) (6,600)
Capitalization of software costs (340,608) (317,019)
NET CASH USED IN INVESTING ACTIVITIES - CONTINUING OPERATIONS (383,716) (323,619)
NET CASH PROVIDED BY INVESTING ACTIVITIES - DISCONTINUED OPERATIONS 3,875,529 0
NET CASH PROVIDED BY INVESTING ACTIVITIES 3,491,813 (323,619)
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 common stock in connection with exercise of H-4 warrants 936,423 0
Proceeds from issuance of Series A Preferred Stock and subscription receivable 0 219,969
Proceeds from issuance of convertible notes and warrants 0 3,340,000
Offering costs - Convertible Notes 0 (263,200)
NET CASH PROVIDED BY FINANCING ACTIVITIES - CONTINUING OPERATIONS 7,134,762 3,296,769
NET CASH USED IN FINANCING ACTIVITIES - DISCONTINUED OPERATIONS (36,329) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 7,098,433 3,296,769
Net increase in cash 523,647 (6,613)
Cash, beginning of period 372,011 51,366
Cash, end of period 895,658 44,753
NON-CASH FINANCING ACTIVITIES:    
Fair value of stock warrants issued with convertible notes 0 1,395,707
Fair value of common stock sold to founders 0 684,000
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
Deemed dividends on warrant issuances $ 1,335,872 $ 0