Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:    
Net Loss $ (3,220,977) $ (2,537,113)
Adjustments to reconcile net loss to net cash from operating activities:    
Bad debt expense 42,116 21,907
Inventories reserve (1,622) (852)
Depreciation expense 162,160 162,242
Gain on extinguishment of debt (258,960) 0
Change in fair value of warrant liability 1,284,780 0
Gain on settlement of derivative liability (550,406) 0
Amortization of right-of-use assets 0 (2,428)
Stock-based compensation 48,000 48,000
Stock based compensation - options 429,856 605,150
Changes in operating assets and liabilities:    
Accounts receivable (28,875) (75,125)
Accounts receivable - related party (15,176) 0
Inventories 21,229 21,289
Other receivable (13,057) 0
Prepaid expenses (210,017) (44,282)
Deposit 66,767 (100,000)
Operating lease right-of-use asset (333,140) 0
Accounts payable and accrued liabilities 94,484 8,132
Accounts payable - related party (17,471) 17,471
Other current liabilities 17,299 (12,238)
Interest payable - related party 0 (1,750)
Customer deposit (57,106) (70,294)
Lease liabilities 328,846 0
Other liabilities (17,135) 4,800
Net cash flows used in operating activities (2,228,405) (1,955,091)
Cash flows from investing activities:    
Purchase of property and equipment (22,990) (1,314)
Net cash flows used in investing activities (22,990) (1,314)
Cash flows from financing activities:    
Proceeds from SBA loan 267,297 396,860
Repayment on SBA loan (246,650) 0
Repayment on promissory note 0 (50,000)
Proceeds from bank loan 1,500,000 0
Repayment on bank loan (1,500,000) 0
Proceeds from IPO, net 10,326,131 0
Net cash flows provided by financing activities 10,346,778 346,860
Effect of exchange rate (43) 0
Net change in cash 8,095,340 (1,609,545)
Cash beginning of year 583,325 2,192,870
Cash end of year 8,678,665 583,325
Supplemental cash flow disclosure:    
Cash paid for income taxes 0 0
Cash paid for interest 42,968 1,831
Supplemental disclosure of non-cash financing activities:    
Cashless warrant $ 1,776,044 $ 0