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 6 Months Ended 12 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Cash flows from operating activities          
Net loss $ (904,217) $ (2,746,573) $ (2,678,088) $ (3,805,352)  
Adjustments to reconcile net loss to net cash used in operating activities:          
Stock-based compensation - amortization of prepaid services 135,109 1,762,736 249,749 1,762,736  
Amortization of discount of notes payable     981,462 713,084  
Amortization of debt issuance costs     60,812 70,036  
Amortization of right to use assets     192,686 188,841  
Amortization of customer acquisition costs     0 34,467  
Amortization of patent rights     111,366 100,602  
Depreciation expense 56,015 80,438 122,604 163,035  
Gain on sale of equipment (5,919) 0 (5,919) 0  
(Gain) Loss on change in fair value of profit share (376,040) 105,715 (252,390) 143,272  
Changes in operating assets and liabilities          
Decrease in accounts receivable     288,826 401,972  
(Increase) Decrease in inventory     52,100 (62,136)  
(Increase) Decrease in prepaid expenses and other assets     13,862 (7,329)  
Decrease in accounts payable and accrued liabilities     (267,820) (21,097)  
Decrease in operating lease liability     (194,749) (188,805)  
Net cash used in operating activities     (1,325,499) (506,674)  
Cash flows from investing activities          
Cash received from sale of equipment     9,500 0  
Net cash provided by investing activities     9,500 0  
Cash flows from financing activities          
Payment of debt issuance costs     0 (26,683)  
Payments of notes payable     (64,691) (30,646)  
Payments of equipment notes payable     (22,559) 0  
Proceeds from the issuance of convertible promissory notes and related warrants     0 1,300,000  
Proceeds from the issuance of notes payable     499,300 0  
Cash flows from financing activities     412,050 1,242,671  
Net increase (decrease) in cash and cash equivalents     (903,949) 735,997  
Cash and cash equivalents - beginning of period     1,499,287 584,877 $ 1,320,874
Cash and cash equivalents - end of period $ 595,338 $ 1,320,874 595,338 1,320,874 $ 595,338
SUPPLEMENTAL CASH FLOW INFORMATION:          
Interest     228,458 121,084  
Taxes     0 0  
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  
Discount on convertible promissory notes payable     0 197,664  
Net adjustment for extension of lease     0 145,267  
Capital contribution related to debt restructuring     $ 0 $ 3,412,204