Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flow from operating activities:    
Net loss $ (26,654,462) $ (30,327,663)
Adjustments to reconcile net loss to net cash used in operating activities:    
Loss on extinguishment of convertible notes 1,314,065 22,296,988
Loss (gain) on change in fair value of financial liabilities 14,893,051 (5,792,788)
Gain on exercise of Series B Warrants (165,355) 0
Loss on conversion of notes to common stock 333,544 0
Stock-based compensation 285,829 1,682,827
Loss on write down of inventory and inventory deposits 57,262 165,324
Loss (gain) on sale/write off of property & equipment 618,738 (6,423)
Bad debt (recovery) expense (16,378) 51,198
Non-cash interest expense 498,657 3,385,204
Amortization of right-of-use assets 194,910 181,677
Depreciation and amortization 197,237 106,625
Changes in operating assets and liabilities:    
Accounts receivable (82,162) 580,155
Inventory (347,144) 786,821
Inventory deposits (1,080,843) (1,847,714)
Prepaid assets and other current assets 940,944 (954,117)
Accounts payable 131,205 (381,252)
Accrued liabilities and vendor settlements 1,124,505 (626,788)
Right-of-use liabilities - operating leases (193,998) (174,365)
Customer deposits (247,708) 295,739
Net cash used in operating activities (8,198,103) (10,578,552)
Cash flow from investing activities:    
Purchase of property and equipment (255,754) (393,291)
Proceeds from sale of property and equipment 15,157 0
Proceeds from insurance settlement 58,058 0
Proceeds from sale of vehicles 0 89,000
Net cash used in investing activities (182,539) (304,291)
Cash flow from financing activities:    
Repayment of notes payable (45,402) (72,859)
Proceeds from issuance of May 2024 Notes and warrants, net of issuance costs of $245,150 2,255,851 0
Proceeds from exercise of Series B Warrants 130,522 0
Proceeds from exercise of buy down warrants 3,500 0
Proceeds from issuance of common stock from public offering, net of issuance costs of $501,300 0 3,998,700
Proceeds from issuance of convertible notes and warrants, net of issuance costs of $586,968 0 3,913,032
Proceeds from exercise of stock options 0 25,000
Net cash provided by financing activities 2,344,471 7,863,873
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (6,036,171) (3,018,970)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD 8,193,346 11,537,842
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD 2,157,175 8,518,872
Supplemental disclosure of cash flow information:    
Cash paid for interest 26,267 4,648
Cash paid for income taxes 0 0
Non-cash transactions    
Conversion of Convertible Notes for common stock 7,414,025 0
Exchange of Convertible Notes for Preferred Stock 24,716,118 0
Reclassification of warrant liability to equity for cashless exercise of Series A Warrants 17,352,653 0
Reclassification of warrant liability to equity for modification of Series B Warrants 3,405,662 0
Exchange of finished goods inventory with vendor for raw materials inventory 323,312 0
Acquisition of property and equipment with note payable $ 0 $ 96,024