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 ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flow from operating activities:    
Net loss $ (40,292,940) $ (41,655,559)
Adjustments to reconcile net loss to net cash used in operating activities:    
Loss on repayment of May 2024 Notes 1,470,554 (0)
Loss on extinguishment of convertible notes 1,314,065 22,296,988
Loss on conversion of convertible notes to common stock 333,544
Loss (gain) on change in fair value of financial liabilities 14,839,326 (5,107,794)
Gain on exercise of Series B Warrants (165,355) 0
Stock-based compensation 295,882 2,223,356
Loss on write down of inventory and inventory deposits 9,062,364 1,786,365
Loss on lease termination 0 85,756
Loss (gain) on sale/write off of property & equipment 842,555 (6,423)
Bad debt (recovery) expense (26,172) 66,990
Non-cash interest expense 553,803 4,516,041
Amortization of right-of-use assets 295,019 274,895
Depreciation and amortization 269,570 173,803
Changes in operating assets and liabilities:    
Accounts receivable (117,533) 591,520
Inventory (784,169) (3,192,019)
Inventory deposits (995,245) 20,919
Prepaid assets and other current assets 1,431,359 (956,689)
Accounts payable (575,620) 2,434,270
Accrued liabilities and vendor settlements 583,157 (264,747)
Right-of-use liabilities - operating leases (295,005) (265,161)
Customer deposits (311,162) 177,534
Net cash used in operating activities (12,272,003) (16,799,955)
Cash flow from investing activities:    
Purchase of property and equipment (276,420) (818,399)
Proceeds from sale of property and equipment 19,717 0
Proceeds from insurance settlement 58,058 0
Proceeds from sale of vehicles 0 89,000
Net cash used in investing activities (198,645) (729,399)
Cash flow from financing activities:    
Repayment of notes payable (47,031) (76,801)
Proceeds from issuance of common stock and pre-funded warrants from public offering, net of issuance costs of $1,210,753 10,789,261 0
Repayment of May 2024 Notes (2,942,170) 0
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 $629,900 0 4,570,100
Proceeds from issuance of convertible notes and warrants, net of issuance costs of $586,968 0 3,913,033
Proceeds from exercise of warrants 537,250
Proceeds from exercise of stock options 0 25,000
Net cash provided by financing activities 10,189,933 8,968,582
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (2,280,715) (8,560,772)
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 5,912,631 2,977,070
Supplemental disclosure of cash flow information:    
Cash paid for interest 54,904 6,474
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 property & equipment in lieu of payments due for inventory purchases 60,000  
Exchange of finished goods inventory with vendor for raw materials inventory 417,285 0
Acquisition of property and equipment with note payable $ 0 $ 96,024