Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cash Flows from Operating Activities    
Net loss $ (16,198,010) $ (21,825,298)
Stock-based compensation:    
Common stock issued for 401(k) employer matching 17,268 32,614
Common stock 300,000 525,000
Options 113,487 269,965
Restricted stock units 307,148 579,630
Non-cash lease expense 231,034 217,767
Gain on foreign currency translation (605,531) (478,500)
Depreciation and amortization 451,925 251,941
Amortization of debt discount 2,649,556 1,172,461
Provision for unrealizable assets 2,267,185 100,805
Provision for obsolete inventory 86,001 115,563
Change in fair value of derivative liability 2,505,731
Loss on extinguishment of debt 416,081 2,105,119
Impairment of investment 7,000,000
Inducement expense 3,163,318
Decrease (increase) in assets:    
Accounts receivable and mortgages receivable (49,808) (608,286)
Employee advances (18,405) 4,053
Inventory (285,017) (530,487)
Inventory deposits (161,531)
Deposits 1,336
Prepaid expenses and other current assets 121,688 (76,691)
Increase (decrease) in liabilities:    
Accounts payable and accrued expenses 1,474,877 1,862,137
Operating lease liabilities (202,775) (175,316)
Deferred revenue 347,907 654,265
Other liabilities 154,437 (60,247)
Total Adjustments 10,122,594 16,125,111
Net Cash Used in Operating Activities (6,075,416) (5,700,187)
Cash Flow from Investing Activities    
Cash paid to acquire GDS, net of cash acquired (7,560)
Purchase of property and equipment (615,398) (1,928,010)
Purchase of intangible asset (50,000) (34,999)
Net Cash Used in Investing Activities (665,398) (1,970,569)
Cash Flow from Financing Activities    
Proceeds from loans payable 185,000
Repayments of loans payable (103,923) (116,775)
Proceeds from lot sale obligations 525,000
Proceeds from the issuance of debt in private placement 1,727,500
Repayments of debt obligations (7,000)
Proceeds from the issuance of convertible debt 5,000,000 1,431,500
Financing costs in connection with the issuance of convertible debt (321,802)
Repayments of convertible debt obligations (862,541)
Redemption premiums paid on convertible debt obligations (156,161)
Proceeds from common stock issued for cash 2,013,066 555,811
Offering costs in connection with common stock issued for cash (44,465)
Proceeds from issuance of shares under the New ELOC, net of offering costs [1] 852,088 10,086
Net Cash Provided by Financing Activities 7,130,727 3,556,657
Effect of Exchange Rate Changes on Cash (262,137) 764,877
Net Increase (Decrease) in Cash 127,776 (3,349,222)
Cash - Beginning of Year 300,185 3,649,407
Cash - End of Year 427,961 300,185
Supplemental Disclosures of Cash Flow Information:    
Interest paid 323,638 215,755
Income taxes paid
Cumulative impact of adoption of ASU 2016-13 111,582
Non-Cash Investing and Financing Activity    
Equity issued to satisfy accrued stock-based compensation obligation 32,617 27,821
Equity issued as consideration for intangible assets 39,600
Equity issued for purchase of non-controlling interest 231,789
Equity issued for acquisition of GDS 2,194,653
Warrants issued and debt principal exchanged upon modification of convertible debt 834,323
Common stock issued upon conversion of debt and accrued interest 5,910,748 7,905,560
Common stock and GGH restricted stock units issued upon exchange of GGI options 1,576,648
Cashless warrant exercise 51
Relative fair value of warrants issued with 2023 Notes, net of allocable issuance costs [2] 1,506,319
Warrants issued and debt principal exchanged upon modification of convertible debt 63,502
Debt discount for warrant modification 392,273
Debt discount for lot sale obligation $ 80,096
[1] Gross proceeds of $927,060, less offering costs of $74,972 for the year ended December 31, 2023.
[2] Represents $1,609,935 relative fair value of warrants, less $103,616 in allocable issuance costs.