Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.21.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net Loss $ (4,862,683) $ (681,979)
Adjustments to reconcile net loss to net cash provided by operations:    
Depreciation 354
Loss on equity investment 21,588
Stock-based compensation for services 258,667 115,715
Stock-based compensation and stock option modification 24,327
Loss on conversion of bridge notes and accrued interest 495,320
Loss on conversion of debentures and notes payable with unrelated parties 68,373
Loss on conversion of accrued salary and bonus, director fees, and notes payable with related parties 271,210  
Change in fair value of convertible bridge notes 3,170,236 (1,057,877)
Amortization of debt issuance costs 1,250 5,000
Paid-in-kind interest - convertible bridge notes 484,031 535,877
Gain on forgiveness or assumption of notes payable and accrued expenses (1,032,160)
Changes in operating assets and liabilities    
Increase in prepaid expenses and other current assets (5,231) (7,665)
Increase in accounts payable and accrued expenses 174,690 43,171
Increase accrued payroll and related expenses 152,657 150,000
Increase in contract liabilities - related party (117,667)
Increase in accrued interest - related party 50,803 15,426
Increase in accrued interest 5,611
Net cash used in operating activities (742,899) (978,057)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from notes payable - related parties 338,373 788,500
Repayments on notes payable - related parties (1,590)
Proceeds from notes payable - unrelated parties 171,000
Proceeds from convertible notes payable 30,000
Proceeds from issuance of Series B preferred stock 100,000
Proceeds from Paycheck Protection Program 142,942
Net cash provided by financing activities 750,725 818,500
NET INCREASE (DECREASE) IN CASH 7,826 (159,557)
CASH - Beginning of year 478 160,035
CASH - End of year 8,304 478
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 35,440 36,000
Investment purchased with a subscription payable 21,588
Conversion of convertible bridge notes and accrued interest of common stock, fair value 2,531,438
Conversion of debentures and notes payable with unrelated parties to common stock 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
Series B Preferred Stock purchased with a stock subscription receivable $ 25,000