Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOW

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CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
OPERATING ACTIVITIES    
Net income (loss) $ 3,102,000 $ (8,214,000)
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:    
Depreciation and amortization 235,000 992,000
Stock-based compensation 218,000 1,009,000
Note discount and interest expense 112,000 1,563,000
Non-cash lease expense, net 108,000 70,000
Impairment of goodwill and intangible assets 251,000 1,234,000
Benefit from reversal of accrued payroll tax (Note 13) (6,171,000) 0
Gain on debt extinguishment 0 (127,000)
Employee retention credit benefit 0 (2,516,000)
Loss on disposal of fixed assets 0 150,000
Deferred taxes (14,000) (51,000)
Other 407,000 449,000
Change in operating assets and liabilities:    
Accounts receivable, net 352,000 1,065,000
Inventory 1,042,000 2,061,000
Prepaid expenses and other 2,931,000 1,680,000
Accounts payable and accrued expenses (320,000) (1,250,000)
Net cash flows provided by (used in) operating activities 2,253,000 (1,885,000)
INVESTING ACTIVITIES    
Acquisition of business, net of cash acquired (156,000) 0
Net cash flows used in investing activities (156,000) 0
FINANCING ACTIVITIES    
Repayment of note payable (1,117,000) (953,000)
Repayment of unsecured debt (274,000) (336,000)
Proceeds from issuance of preferred stock and common stock warrants 0 700,000
Issuance costs related to issuance of preferred stock and common stock warrants 0 (146,000)
Proceeds from issuance of convertible notes 0 1,000,000
Proceeds from note payable 0 2,000,000
Repayment of convertible notes 0 (675,000)
Net cash flows provided by (used in) financing activities (1,391,000) 1,121,000
Net increase (decrease) in cash 706,000 (764,000)
Cash, beginning of year 611,000 1,375,000
Cash, end of year 1,317,000 611,000
Supplemental cash flow disclosures:    
Interest paid 7,000 6,000
Income taxes paid 0 2,000
Supplemental disclosure of non-cash transactions:    
Purchase of insurance through issuance of note payable (Note 8) 259,000 245,000
Conversion of note into common shares 0 (1,284,000)
Services paid with common stock 100,000 385,000
Fair value of assets acquired, excluding cash 275,000 0
Liabilities assumed (77,000) 0
Goodwill on acquisition 336,000 0
Common stock consideration (250,000) 0
Holdback liability (18,000) 0
Contingent consideration (88,000) 0
Deferred tax liabilities (22,000) 0
Cash paid for acquisition 156,000 0
Convertible Debt    
FINANCING ACTIVITIES    
Debt issuance costs 0 (46,000)
Unsecured Notes Payable    
FINANCING ACTIVITIES    
Debt issuance costs $ 0 $ (423,000)