Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOW

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STATEMENTS OF CASH FLOW - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
OPERATING ACTIVITIES    
Net loss $ (8,214,000) $ (15,554,000)
Adjustments to reconcile net loss to net cash flows used in operating activities:    
Depreciation and amortization 992,000 1,153,000
Stock-based compensation 1,009,000 3,210,000
Note discount and interest expense 1,563,000 72,000
Gain on debt extinguishment (127,000) (2,945,000)
Gain on lease modification 0 (972,000)
Employee retention credit benefit (2,516,000) 0
Impairment of goodwill and intangible assets 1,234,000 5,033,000
Loss on disposal of fixed assets 150,000 25,000
Bad debt expense 0 74,000
Non-cash lease expense 70,000 350,000
Deferred taxes (51,000) (94,000)
Other 449,000 247,000
Change in operating assets and liabilities:    
Accounts receivable, net 1,065,000 (989,000)
Inventory 2,061,000 216,000
Prepaid expenses and other 1,680,000 1,045,000
Accounts payable and accrued expenses (1,250,000) 1,644,000
Net cash flows used in operating activities (1,885,000) (7,485,000)
INVESTING ACTIVITIES    
Purchase of equipment 0 (35,000)
Net cash flows used in investing activities 0 (35,000)
FINANCING ACTIVITIES    
Proceeds from issuance of preferred stock and common stock warrants 700,000 0
Issuance costs related to issuance of preferred stock and common stock warrants (146,000) 0
Proceeds from convertible notes 1,000,000 1,000,000
Proceeds from note payable 2,000,000 0
Proceeds from issuance of common stock 0 4,407,000
Repayment of convertible notes (675,000) 0
Repayment of note payable (953,000) 0
Repayment of unsecured debt (336,000) (808,000)
Net cash flows provided by financing activities 1,121,000 4,370,000
Net decrease in cash (764,000) (3,150,000)
Cash, beginning of year 1,375,000 4,525,000
Cash, end of year 611,000 1,375,000
Supplemental cash flow disclosures:    
Interest paid 6,000 10,000
Income taxes paid 2,000 13,000
Supplemental disclosure of non-cash transactions:    
Purchase of insurance through issuance of note payable (Note 8) 245,000 397,000
Conversion of note into common shares (1,284,000) (230,000)
Derecognition of operating ROU asset related to operating lease termination 0 (2,773,000)
Forgiveness of PPP loan 0 (2,945,000)
Services paid with common stock 385,000 0
Convertible Debt    
FINANCING ACTIVITIES    
Debt issuance costs (46,000) (229,000)
Unsecured Notes Payable    
FINANCING ACTIVITIES    
Debt issuance costs $ (423,000) $ 0