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, 2021
Dec. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Loss $ (11,977,065) $ (4,862,683)
Adjustments to reconcile net loss to net cash provided by operations:    
Stock-based compensation for services and warrant modification 1,179,932 258,667
Stock-based compensation to employees and directors 7,826,779 24,327
Loss on conversion of bridge notes and accrued interest 744,505 495,320
Loss on conversion of debentures and accrued expenses to common stock 390,069 68,373
Loss on conversion of accrued salary and bonus, director fees, and promissory notes with related parties 271,210
Change in fair value of convertible bridge notes 3,170,236
Amortization of debt issuance costs 1,250
Paid-in-kind interest - convertible bridge notes 35,983 484,031
Gain on forgiveness or assumption of promissory notes and accrued expenses (1,032,160)
Gain on forgiveness of Paycheck Protection Program (142,942)
Changes in operating assets and liabilities    
Increase in prepaid expenses and other current assets 122,118 5,231
Increase in accounts payable and accrued expenses 283,660 174,690
Increase accrued payroll and related expenses 47,394 152,657
Deferred offering costs (35,000)
Increase in accrued interest 50,803
Increase in accrued interest - related party 5,611
Net cash used in operating activities (1,768,803) (742,899)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from promissory notes - related parties 338,373
Repayments on promissory notes - related parties (33,492) (1,590)
Proceeds from promissory notes - unrelated parties 171,000
Proceeds from convertible notes payable 605,000
Proceeds from conversion of warrants 467,857
Proceeds from issuance of preferred stock - Series B 2,221,000 100,000
Proceeds from Paycheck Protection Program 142,942
Net cash provided by financing activities 3,260,365 750,725
NET INCREASE IN CASH 1,491,562 7,826
CASH - Beginning of year 8,304 478
CASH - End of year 1,499,866 8,304
SUPPLEMENTAL CASH FLOW DISCLOSURES:    
Payment of interest in cash
Payment of income taxes
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Accrual of contractual dividends on Series A convertible preferred stock 29,538 35,440
Accrual of contractual dividends on Series B convertible preferred stock $ 153,343
Fair value allocation of warrants issued with debt 72,600
Deemed dividend on warrant modifications $ 850,214
Deemed dividend on conversion of Series A 542,500
Conversion of convertible Bridge Notes and accrued interest to 6,627,692 and 11,418,069 shares of common stock, respectively 3,633,983 2,531,438
Conversion of debentures and accrued expenses to common stock 125,000 48,811
Conversion of accrued salary and bonus, director fees, and notes payable with related parties to common stock 464,526
Conversion of notes payable to Series B Preferred Stock 156,000
Conversion of Series A preferred stock to common stock 120,000
Conversion of notes payable with related parties to Series B preferred stock and warrants $ 23,000