v3.22.2.2
Condensed Consolidated Statements of Cash Flows - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Jun. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income (loss) $ 1,442,652 $ (440,982) $ (3,331,676)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization   1,420,558 714,647
Fair value remeasurement of earnout consideration (4,671,000) (4,671,000)  
Fair value remeasurement of contingent value rights 1,214,560 1,214,560  
Gain on sale of assets (1,214,560) (1,214,560)  
Interest and accretion expense   435,133 729,271
Changes in assets and liabilities:      
Trade accounts receivables   (738,806)  
Inventories   444,099  
Prepaid income taxes   (7,697)  
Other assets, net   216,708  
Accounts payable   (3,149,160) 1,391,292
Accrued compensation and benefits   (803,283) 143,740
Customer deposits   712,324  
Other accrued liabilities   101,832  
Accrued interest   (1,024,050)  
Net cash used in operating activities   (7,504,324) (352,726)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Capital expenditures   (11,115)  
Acquisition of business, net of cash acquired   (10,244,916)  
Proceeds from the sale of property, plant and equipment held for sale   6,281,415 479,983
Proceeds from the sale of investments   58,985  
Proceeds from earnout consideration on sale of assets 1,500,000 1,500,000  
Net cash (used in) provided by investing activities   (2,415,631) 479,983
CASH FLOWS FROM FINANCING ACTIVITIES:      
Borrowings against working capital note payable   150,000 50,000
Payments against loan payable principal   (4,500,000)  
Payments related to equity issuance costs   (2,699,370)  
Proceeds from the issuance of preferred stock upon closing of private placement   32,000,000  
Net cash provided by financing activities   24,950,630 50,000
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH   15,030,675 177,257
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD   18,966  
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 15,049,641 15,049,641 177,257
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Income taxes paid   7,697  
Interest paid   1,070,853 $ 1,819
NONCASH FINANCING AND INVESTING ACTIVITIES:      
Issuance of common stock for conversion of related party payables   2,350,000  
Issuance of common stock for conversion of working capital note payable   500,000  
Issuance of common stock for the acquisition of HEC and E-Gear   12,781,234  
Effect of reverse capitalization   1,594,779  
Contingent consideration related to merger transaction   (4,684,000)  
Operating right of use assets obtained in exchange for lease obligations   $ 127,902  

Source