v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Operating activities:    
Net (loss) income $ (6,589,604) $ (3,629,486)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on merger termination 0 (3,766,667)
Contract Cancellation (1,260,978) 0
Depreciation and amortization 2,452,930 2,298,964
Depreciation-Right of Use Assets 291,100 131,104
Amortization of financing fees 11,092 43,402
Amortization of debt discount 18,286 0
Amortization of original issue discount on convertible promissory notes 13,167 93,333
Stock based compensation 660,615 594,630
Mark to market fair value of derivative 102,664 460,800
Loss on extinguishment of convertible debt 65,700 0
(Provision) recovery of doubtful accounts (73,333) 61,273
Change in operating assets and liabilities:    
Accounts receivable 3,564,381 572,297
Prepaid expenses, unbilled revenue and other current assets (225,771) 11,374
Accrued expenses and other liabilities (334,576) 1,450,574
Accounts payable (3,031,304) (2,964,105)
Net cash used in operating activities (4,335,631) (4,642,507)
Investing activities:    
Purchases of equipment and capitalized development costs (852,423) (893,104)
Net cash used in investing activities (852,423) (893,104)
Financing activities:    
Proceeds from sale of common stock, net 16,432,190 4,349,126
Prepaid financing fees 0 (24,529)
Proceeds from ValidClick licensing agreement 500,000 0
Proceeds from convertible promissory notes 0 1,200,000
Net payments on line of credit (3,381,364) 0
Net proceeds from financed receivables 0 568,097
Payments on finance lease obligations (412,382) (151,409)
Shareholder Settlement 0 125,000
Proceeds from PPP and SBA loans 1,258,900 0
Net taxes paid on restricted stock unit grants exercised (54,065) (45,567)
Net cash provided by financing activities 14,343,279 6,020,718
Net change – cash 9,155,225 485,107
Cash, beginning of year 372,989 228,956
Cash, end of period 9,528,214 714,063
Supplemental information:    
Interest paid 200,904 306,073
Non cash investing and financing activities:    
ReTargeter Intangible Assets 0 2,575,000
Adoption of ASC 842 0 1,437,526
Conversion of Debt and derecognition of derivative and discounts to common stock 923,810 0
Assets purchased under finance lease obligations 524,368 $ 0
Assets purchased under operating lease obligations $ 249,595  

Source