Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Operating activities    
Net loss $ (5,482,645) $ (4,117,618)
Adjustments to reconcile net income loss to net cash used in operating activities:    
Depreciation and amortization 569,811 21,125
Amortization of right of use assets 92,867 17,398
Amortization of debt discount 796,863
Stock-based compensation 68,169 223,123
Change in fair value of derivative liability (192,562)
Derivative expense 496,055
(Gain) loss on settlement of liabilities (2,681,586) 474,953
Gain on equity investment in Centercom (145,336) (64,775)
Changes in operating assets and liabilities:    
Accounts receivable 2,241,635 (1,029,947)
Lifeline revenue due from USAC (172,300) 545,646
Customer phone supply 853,291
Inventory (102,682)
Prepaid expenses 64,534 (103,556)
Other assets 66,457
Credit card liability (65,551) 122,116
Deferred revenue 317,148
Loss contingency (38,040) (60,000)
Current portion of operating lease liability (101,029) (17,398)
Accounts payable and accrued expenses 2,037,203 (155,986)
Net cash used in operating activities (2,230,989) (3,291,628)
Investing activities    
Purchase of equipment (2,836)
Net cash used in investing activities (2,836)
Financing activities    
Issuance of Common Stock and warrants 705,000 2,982,500
Repurchase of Common Stock (500,000)
Note payable, related party - borrowings 200,000
Note payable, related party - repayments (100,000)
Note payable - borrowings 648,082  
Note payable - repayments (27,500) (50,000)
Convertible promissory notes - borrowings 1,912,000
Convertible promissory notes - repayments (468,000)
Cash paid for debt issuance costs (142,000)
Line of credit - advances 1,130,973
Line of credit - repayments (203,000)
Loan proceeds under related party financing arrangement 1,099,000
Loan repayments under related party financing arrangement (674,000)
Net cash provided by financing activities 2,227,582 4,285,473
Net increase in cash and cash equivalents (6,243) 993,845
Cash and cash equivalents, beginning of period 346,040 444,612
Cash and cash equivalents, end of period 339,797 1,438,457
Cash paid for interest and income taxes:    
Interest 64,646 47,476
Income taxes
Non-cash investing and financing activities:    
Exchange of related party advances for Series C Preferred Stock 389,502
Exchange of investment in CenterCom for Series C Preferred Stock 178,508
Common Stock issued for an acquisition 165,000  
Common Stock and warrants issued with debt recorded as debt discount 801,636
Derivative liability on convertible notes recorded as debt discount 1,234,546
Operating lease liability $ 355,203 $ 230,812