Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.20.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Operating activities    
Net loss $ (8,447,026) $ (1,541,078)
Adjustments to reconcile net income loss to net cash used in operating activities:    
Depreciation and amortization 227,322 149,642
Amortization of right of use assets 55,608
Amortization of debt discount 68,764
Stock-based compensation 329,574 157,907
Bad debt expense 977,792
Change in fair value of LTC cryptocurrency coins 63,487
Change in fair value of derivative liability (4,013) 4,105
Loss (gain) on settlement of liabilities 474,953 (61,709)
Loss on settlement of debt 14,667
Gain on equity investment in Centercom (25,192)
Accrued interest on note receivable (38,471)
Changes in operating assets and liabilities:    
Accounts receivable (3,599,534) (102,815)
Lifeline revenue due from USAC 790,176 319,603
Customer phone supply 1,356,701 (836,536)
LTC Cryptocurrency coins (96,992)
Prepaid expenses (86,021) 40,465
Other assets (4,999)
Credit card liability 54,317
Deferred revenue (50,000) (171,500)
Loss contingency (31,960) 120,000
Current portion of operating lease liability (55,608)
Accounts payable and accrued expenses 1,474,476 925,140
Net cash used in operating activities (6,533,141) (1,015,614)
Investing activities    
Purchase of equipment (227,630) (331,803)
Advances under notes receivable (14,959) (190,000)
Net cash received in business combination 210,348 243,768
Net cash used in investing activities (32,241) (278,035)
Financing activities    
Issuance of Common Stock and warrants 3,210,500
Due from related party - net 17,554
Note payable - borrowings 250,000 (31,250)
Note payable - repayments (70,000)
Convertible promissory notes - borrowings 638,000
Line of credit - advances 1,130,000 1,441,029
Line of credit - repayments (217,130) (1,441,029)
Loan proceeds under related party financing arrangement 2,199,440 1,653,500
Loan repayments under related party financing arrangement (674,000) (1,175,703)
Net cash provided by financing activities 6,466,810 464,101
Net decrease in cash and cash equivalents (98,572) (829,548)
Cash and cash equivalents, beginning of period 444,612 1,274,160
Cash and cash equivalents, end of period 346,040 444,612
Cash paid for interest and income taxes:    
Interest 77,825 10,580
Income taxes 82,230
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
Operating lease liability 266,424
Common Stock issued in asset purchase 1,000,000
Debt acquired in asset purchase 4,000,000
Common Stock and warrants issued with debt recorded as debt discount 120,060
Derivative liability on convertible notes recorded as debt discount 176,348
Debt acquired in business combination 3,000,000
Exchange of Common Stock for Series C Preferred Stock 148,741
Liabilities settled in Common Stock $ 3,875,352