Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
 3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities    
Net loss $ (1,773,871) $ (1,058,779)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Stock-based compensation - amortization of prepaid services 114,640 0
Amortization of discount of notes payable 490,988 276,512
Amortization of debt issuance costs 30,406 7,174
Amortization of right to use assets 94,710 94,353
Amortization of customer acquisition costs 0 34,467
Amortization of patent rights 50,300 50,301
Depreciation expense 66,589 82,597
Loss on change in fair value of profit share 123,650 37,557
Changes in operating assets and liabilities:    
Decrease in accounts receivable 723,314 673,961
(Increase) Decrease in inventory 48,686 (16,961)
Decrease in prepaid expenses and other assets 8,764 20,129
(Decrease) in accounts payable and accrued liabilities (1,093,709) (40,690)
(Decrease) in operating lease liability (95,222) (92,376)
Net cash provided by (used in) operating activities (1,210,755) 68,245
Cash flows from financing activities    
Payment of debt issuance costs 0 (26,683)
Payments of notes payable (16,018) (14,892)
Payments of equipment notes payable (11,214) 0
Proceeds from the issuance of notes payable 200,000 0
Net cash provided by (used in) financing activities 172,768 (41,575)
Net increase (decrease) in cash (1,037,987) 26,670
Cash - beginning of period 1,499,287 584,877
Cash - end of period 461,300 611,547
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid during the period for: Interest 228,458 108,928
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS:    
Cumulative effect on accumulated deficit of lease accounting change 0 77,866
Stock issued for prepaid services 200,000 0
Capital contribution related to debt restructuring $ 0 $ 3,412,204