☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nevada | 20-1176000 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3360 Martin Farm Road, Suite 100 Suwanee, GA | 30024 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Large accelerated filer ☐ | Accelerated filer ☐ | |
Non-accelerated filer ☒ | Smaller reporting company ☒ | |
Emerging growth company ☐ |
Page | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
4 | ||
5 | ||
6 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 327 | $ | 2,437 | $ | 313 | $ | 619 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $650 in 2021 and $343 in 2020 | 2,417 | 2,356 | ||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $785 and $475, respectively | 1,730 | 2,415 | ||||||||||||||
Inventory | 1,526 | 2,956 | 1,001 | 1,040 | ||||||||||||
Prepaid expenses and other current assets | 426 | 179 | 365 | 326 | ||||||||||||
Total Current Assets | 4,696 | 7,928 | 3,409 | 4,400 | ||||||||||||
Property and Equipment, net | 629 | 471 | 315 | 668 | ||||||||||||
Right of Use Assets, net | 462 | 795 | 259 | 344 | ||||||||||||
Other Intangible Assets, net | 6,017 | 6,545 | 5,665 | 5,841 | ||||||||||||
Goodwill | 7,260 | 7,260 | 7,260 | 7,260 | ||||||||||||
Other Assets | 118 | 28 | 106 | 106 | ||||||||||||
Total Assets | $ | 19,182 | $ | 23,027 | $ | 17,014 | $ | 18,619 | ||||||||
LIABILITIES | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Senior secured promissory note payable, in default | $ | 11,358 | $ | 10,676 | $ | 11,894 | $ | 11,586 | ||||||||
Convertible promissory notes payable, in default | 9,690 | 4,000 | 10,532 | 11,601 | ||||||||||||
Convertible promissory notes, related parties, in default | 1,596 | 1,596 | 1,596 | 1,596 | ||||||||||||
Advances on future cash receipts | 498 | 0 | 416 | 446 | ||||||||||||
Accounts payable | 7,069 | 4,454 | 6,696 | 7,644 | ||||||||||||
Accrued expenses | 4,178 | 2,127 | 4,916 | 4,394 | ||||||||||||
Accrued employee compensation | 3,342 | 2,541 | 3,623 | 4,247 | ||||||||||||
Due under factoring agreement | 1,244 | 0 | 1,231 | 1,737 | ||||||||||||
Warrant liability | 5,669 | 8,855 | 8,300 | 9,614 | ||||||||||||
Current portion of SBA loans | 91 | 321 | 226 | 158 | ||||||||||||
Accrued interest | 1,944 | 1,021 | 3,072 | 2,521 | ||||||||||||
Accrued interest, related parties | 227 | 77 | 345 | 289 | ||||||||||||
Current portion of lease liabilities | 327 | 451 | 268 | 268 | ||||||||||||
Current portion of contract liabilities | 40 | 32 | 58 | 48 | ||||||||||||
Other | 32 | 23 | 58 | 114 | ||||||||||||
Total Current Liabilities | 47,305 | 36,174 | 53,231 | 56,263 | ||||||||||||
Non-current Liabilities | ||||||||||||||||
SBA loans | 942 | 143 | 807 | 875 | ||||||||||||
Lease liabilities | 181 | 391 | 34 | 118 | ||||||||||||
Contract liabilities | 230 | 37 | 303 | 293 | ||||||||||||
Deferred tax liability | 28 | 0 | 28 | 28 | ||||||||||||
Total Non-current Liabilities | 1,381 | 571 | 1,172 | 1,314 | ||||||||||||
Total Liabilities | 48,686 | 36,745 | 54,403 | 57,577 | ||||||||||||
Contingencies | 0 | 0 | ||||||||||||||
Commitments and Contingencies (Footnote 11) | 0 | 0 | ||||||||||||||
STOCKHOLDERS’ DEFICIT | ||||||||||||||||
Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175, 293, 90 and 8 shares designated Series A, Series B, Series C and Series D, respectively; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 | ||||||||||||||
Common Stock, par value $0.001, 800,000,000 shares authorized; 481,619,621 and 470,694,621 issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 482 | 471 | ||||||||||||||
Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175, 293, 90 and 8 shares designated Series A, Series B, Series C and Series D, respectively; 0 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Common Stock, par value $0.001, 800,000,000 shares authorized; 517,195,705 and 481,619,621 issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 517 | 482 | ||||||||||||||
Additional Paid-in Capital | 144,582 | 142,563 | 150,533 | 144,582 | ||||||||||||
Accumulated Deficit | (174,494 | ) | (156,690 | ) | (188,372 | ) | (183,949 | ) | ||||||||
Accumulated Other Comprehensive Loss | (74 | ) | (62 | ) | (67 | ) | (73 | ) | ||||||||
Total Stockholders’ Deficit | (29,504 | ) | (13,718 | ) | (37,389 | ) | (38,958 | ) | ||||||||
Total Liabilities and Stockholders’ Deficit | $ | 19,182 | $ | 23,027 | $ | 17,014 | $ | 18,619 |
Three Months Ended March 31, | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | 2022 | 2021 | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Accessory and parts revenue | $ | 2,400 | $ | 1,212 | $ | 6,509 | $ | 1,288 | $ | 2,192 | $ | 1,571 | ||||||||||||
Product | 1,299 | 72 | 2,066 | 216 | 645 | 253 | ||||||||||||||||||
Rental Income | 343 | 254 | ||||||||||||||||||||||
License fees and other | 26 | 82 | 175 | 94 | 15 | 38 | ||||||||||||||||||
Total Revenue | 3,725 | 1,366 | 8,750 | 1,598 | 3,195 | 2,116 | ||||||||||||||||||
Cost of Revenues | 1,555 | 601 | 3,658 | 811 | 889 | 1,055 | ||||||||||||||||||
Gross Margin | 2,170 | 765 | 5,092 | 787 | 2,306 | 1,061 | ||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
General and administrative | 3,058 | 5,329 | 9,494 | 9,826 | 2,141 | 3,129 | ||||||||||||||||||
Selling and marketing | 2,150 | 1,373 | 6,450 | 2,414 | 1,715 | 1,780 | ||||||||||||||||||
Research and development | 297 | 432 | 923 | 984 | 166 | 354 | ||||||||||||||||||
Gain on disposal of assets | (554 | ) | 0 | |||||||||||||||||||||
Depreciation and amortization | 176 | 192 | ||||||||||||||||||||||
Total Operating Expenses | 5,505 | 7,134 | 16,867 | 13,224 | 3,644 | 5,455 | ||||||||||||||||||
Operating Loss | (3,335 | ) | (6,369 | ) | (11,775 | ) | (12,437 | ) | (1,338 | ) | (4,394 | ) | ||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (1,781 | ) | (690 | ) | (4,340 | ) | (878 | ) | (3,076 | ) | (1,122 | ) | ||||||||||||
Interest expense, related party | (56 | ) | (47 | ) | ||||||||||||||||||||
Change in fair value of derivative liabilities | 1,555 | (5,591 | ) | 1,599 | (5,591 | ) | 3,482 | 635 | ||||||||||||||||
Interest expense, related party | (55 | ) | (61 | ) | (150 | ) | (432 | ) | ||||||||||||||||
Partnership fee income | 0 | 600 | 0 | 600 | ||||||||||||||||||||
Loss on issuance of debt | (1,088 | ) | 0 | (3,572 | ) | 0 | (3,434 | ) | 0 | |||||||||||||||
Gain / (loss) on extinguishment of debt | 460 | (503 | ) | 460 | (503 | ) | ||||||||||||||||||
Gain / (loss) on foreign currency exchange | (2 | ) | (24 | ) | 2 | (32 | ) | (1 | ) | 7 | ||||||||||||||
Other Income (Expense), net | (911 | ) | (6,269 | ) | (6,001 | ) | (6,836 | ) | (3,085 | ) | (527 | ) | ||||||||||||
Net Loss before Income Taxes | (4,246 | ) | (12,638 | ) | (17,776 | ) | (19,273 | ) | (4,423 | ) | (4,921 | ) | ||||||||||||
Provision for Income Taxes | 6 | 0 | 28 | 0 | 0 | 16 | ||||||||||||||||||
Net Loss | (4,252 | ) | (12,638 | ) | (17,804 | ) | (19,273 | ) | (4,423 | ) | (4,937 | ) | ||||||||||||
Other Comprehensive Loss | ||||||||||||||||||||||||
Foreign currency translation adjustments | 0 | 3 | (12 | ) | 1 | 0 | (8 | ) | ||||||||||||||||
Total Comprehensive Loss | $ | (4,252 | ) | $ | (12,635 | ) | $ | (17,816 | ) | $ | (19,272 | ) | $ | (4,423 | ) | $ | (4,945 | ) | ||||||
Loss per Share: | ||||||||||||||||||||||||
Net loss per share, basic and diluted | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
Weighted average shares outstanding, basic and diluted | 518,310,781 | 384,502,450 | 518,370,156 | 326,405,397 | 525,414,534 | 518,490,225 |
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||
Number of Shares Issued and Outstanding | Par Value | Number of Shares Issued and Outstanding | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||
Balances as of December 31, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (183,949 | ) | $ | (73 | ) | $ | (38,958 | ) | |||||||||||||||
Cashless warrant exercise | 0 | 0 | 14,000,000 | 14 | 2,152 | 0 | 0 | 2,166 | ||||||||||||||||||||||||
Warrant exercise | 0 | 0 | 909,091 | 1 | 99 | 0 | 0 | 100 | ||||||||||||||||||||||||
Shares issued in conjunction with Note Payable | 0 | 0 | 20,666,993 | 20 | 3,700 | 0 | 0 | 3,720 | ||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (4,423 | ) | 0 | (4,423 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | 6 | 6 | ||||||||||||||||||||||||
Balances as of March 31, 2022 | 0 | $ | 0 | 517,195,705 | $ | 517 | $ | 150,533 | $ | (188,372 | ) | $ | (67 | ) | $ | (37,389 | ) |
Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||
Number of | Number of | Accumulated | ||||||||||||||||||||||||||||||
Shares | Shares | Other | ||||||||||||||||||||||||||||||
Issued and | Issued and | Additional Paid- | Accumulated | Comprehensive | ||||||||||||||||||||||||||||
Outstanding | Par Value | Outstanding | Par Value | in Capital | Deficit | Loss | Total | |||||||||||||||||||||||||
Balances as of June 30, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (170,242 | ) | $ | (74 | ) | $ | (25,252 | ) | |||||||||||||||
Net loss | - | $ | 0 | - | $ | 0 | $ | 0 | $ | (4,252 | ) | $ | 0 | $ | (4,252 | ) | ||||||||||||||||
Balances as of September 30, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (174,494 | ) | $ | (74 | ) | $ | (29,504 | ) |
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||
Number of Shares Issued and Outstanding | Par Value | Number of Shares Issued and Outstanding | Par Value | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total | |||||||||||||||||||||||||
Balances as of December 31, 2020 | 0 | $ | 0 | 470,694,621 | $ | 471 | $ | 142,563 | $ | (156,690 | ) | $ | (62 | ) | $ | (13,718 | ) | |||||||||||||||
Cashless warrant exercise | 0 | 0 | 10,925,000 | 11 | (11 | ) | 0 | 0 | 0 | |||||||||||||||||||||||
Reclassification of warrant liability due to cashless warrant exercise | 0 | 0 | 0 | 0 | 2,030 | 0 | 0 | 2,030 | ||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (4,937 | ) | 0 | (4,937 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | (8 | ) | (8 | ) | ||||||||||||||||||||||
Balances as of March 31, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (161,627 | ) | $ | (70 | ) | $ | (16,633 | ) |
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||
Number of | Number of | Accumulated | ||||||||||||||||||||||||||||||
Shares | Shares | Other | ||||||||||||||||||||||||||||||
Issued and | Issued and | Additional Paid- | Accumulated | Comprehensive | ||||||||||||||||||||||||||||
Outstanding | Par Value | Outstanding | Par Value | in Capital | Deficit | Loss | Total | |||||||||||||||||||||||||
Balances as of June 30, 2020 | 0 | $ | 0 | 302,119,428 | $ | 302 | $ | 117,327 | $ | (132,387 | ) | $ | (65 | ) | $ | (14,823 | ) | |||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (12,638 | ) | 0 | (12,638 | ) | ||||||||||||||||||||||
Proceeds from PIPE offering, net of offering costs | 0 | 0 | 123,550,000 | 124 | 12,408 | 0 | 0 | 12,532 | ||||||||||||||||||||||||
LGH Warrant Liability | - | 0 | - | 0 | (249 | ) | 0 | 0 | (249 | ) | ||||||||||||||||||||||
Series C Preferred Conversion | 0 | 0 | 16,071,390 | 16 | 2,234 | 0 | 0 | 2,250 | ||||||||||||||||||||||||
Series D Preferred Conversion | 0 | 0 | 1,428,568 | 2 | 198 | 0 | 0 | 200 | ||||||||||||||||||||||||
Shares issued for services | 0 | 0 | 5,000,000 | 5 | 1,075 | 0 | 0 | 1,080 | ||||||||||||||||||||||||
Inducement shares issued | 0 | 0 | 200,000 | 0 | 45 | 0 | 0 | 45 | ||||||||||||||||||||||||
Conversion of short-term notes and settlements | 0 | 0 | 2,250,000 | 2 | 208 | 0 | 0 | 210 | ||||||||||||||||||||||||
Conversion of notes payable, related parties | 0 | 0 | 15,475,235 | 15 | 2,276 | 0 | 0 | 2,291 | ||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | 3 | 3 | ||||||||||||||||||||||||
Balances as of September 30, 2020 | 0 | $ | 0 | 466,094,621 | $ | 466 | $ | 135,522 | $ | (145,025 | ) | $ | (62 | ) | $ | (9,099 | ) |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||
Number of | Number of | Accumulated | ||||||||||||||||||||||||||||||
Shares | Shares | Other | ||||||||||||||||||||||||||||||
Issued and | Issued and | Additional Paid- | Accumulated | Comprehensive | ||||||||||||||||||||||||||||
Outstanding | Par Value | Outstanding | Par Value | in Capital | Deficit | Loss | Total | |||||||||||||||||||||||||
Balances as of December 31, 2020 | 0 | $ | 0 | 470,694,621 | $ | 471 | $ | 142,563 | $ | (156,690 | ) | $ | (62 | ) | $ | (13,718 | ) | |||||||||||||||
Cashless warrant exercise | 0 | 0 | 10,925,000 | 11 | (11 | ) | 0 | 0 | 0 | |||||||||||||||||||||||
Reclassification of warrant liability due to cashless warrant exercise | 0 | 0 | 0 | 0 | 2,030 | 0 | 0 | 2,030 | ||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (17,804 | ) | 0 | (17,804 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | (12 | ) | (12 | ) | ||||||||||||||||||||||
Balances as of September 30, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (174,494 | ) | $ | (74 | ) | $ | (29,504 | ) |
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||
Number of | Number of | Accumulated | ||||||||||||||||||||||||||||||
Shares | Shares | Other | ||||||||||||||||||||||||||||||
Issued and | Issued and | Additional Paid- | Accumulated | Comprehensive | ||||||||||||||||||||||||||||
Outstanding | Par Value | Outstanding | Par Value | in Capital | Deficit | Loss | Total | |||||||||||||||||||||||||
Balances as of December 31, 2019 | 0 | $ | 0 | 293,780,400 | $ | 294 | $ | 115,458 | $ | (125,752 | ) | $ | (62 | ) | $ | (10,062 | ) | |||||||||||||||
Proceeds from warrant exercise | 0 | 0 | 1,000,000 | 1 | 9 | 0 | 0 | 10 | ||||||||||||||||||||||||
Conversion of short term notes and convertible notes payable | 0 | 0 | 4,829,789 | 5 | 560 | 0 | 0 | 565 | ||||||||||||||||||||||||
Conversion of notes payable, related parties | 0 | 0 | 15,475,235 | 15 | 2,275 | 2,290 | ||||||||||||||||||||||||||
Conversion of advances from related parties | 0 | 0 | 262,811 | 0 | 18 | 0 | 0 | 18 | ||||||||||||||||||||||||
Series C Preferred Conversion | 0 | 0 | 16,071,390 | 16 | 2,234 | 0 | 0 | 2,250 | ||||||||||||||||||||||||
Series D Preferred Conversion | 0 | 0 | 1,428,568 | 2 | 198 | 0 | 0 | 200 | ||||||||||||||||||||||||
Shares issued for services | 0 | 0 | 8,200,000 | 8 | 1,789 | 0 | 0 | 1,796 | ||||||||||||||||||||||||
Inducement shares issued | 0 | 0 | 200,000 | 0 | 45 | 0 | 0 | 45 | ||||||||||||||||||||||||
Proceeds from PIPE offering, net of offering costs | 0 | 0 | 124,621,428 | 125 | 12,558 | 0 | 0 | 12,683 | ||||||||||||||||||||||||
LGH Warrant Liability | - | 0 | - | 0 | (249 | ) | 0 | 0 | (249 | ) | ||||||||||||||||||||||
Stock-based compensation | - | 0 | - | 0 | 22 | 0 | 0 | 22 | ||||||||||||||||||||||||
Proceeds from stock option exercise | 0 | 0 | 225,000 | 0 | 44 | 0 | 0 | 44 | ||||||||||||||||||||||||
Beneficial conversion feature on convertible debt | - | 0 | - | 0 | 561 | 0 | 0 | 561 | ||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (19,273 | ) | 0 | (19,273 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||
Balances as of September 30, 2020 | 0 | $ | 0 | 466,094,621 | $ | 466 | $ | 135,522 | $ | (145,025 | ) | $ | (62 | ) | $ | (9,099 | ) |
Nine Months Ended September 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash Flows - Operating Activities: | ||||||||||||||||
Net loss | $ | (17,804 | ) | $ | (19,273 | ) | $ | (4,423 | ) | $ | (4,937 | ) | ||||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||||||||||
Amortization of intangibles | 528 | 245 | 176 | 176 | ||||||||||||
Depreciation | 442 | 200 | 15 | 94 | ||||||||||||
Bad debt expense | 307 | (40 | ) | 0 | 132 | |||||||||||
Shares issued for services | 0 | 1,820 | ||||||||||||||
Shares issued for inducement | 0 | 45 | ||||||||||||||
Deferred taxes | 28 | 0 | ||||||||||||||
Income tax expense | 0 | 16 | ||||||||||||||
Change in fair value of derivative liabilities | (1,599 | ) | 5,591 | (3,482 | ) | (635 | ) | |||||||||
Loss on issuance of debt | 3,572 | 0 | 3,434 | 0 | ||||||||||||
Loss (Gain) on extinguishment of debt | (460 | ) | 503 | |||||||||||||
Amortization of debt issuance costs | 240 | 214 | ||||||||||||||
Amortization of debt discount | 1,178 | 0 | ||||||||||||||
Amortization of debt issuance costs and original issue discount | 889 | 228 | ||||||||||||||
Accrued interest | 929 | 191 | 551 | (40 | ) | |||||||||||
Interest payable, related parties | 150 | 696 | 56 | 47 | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable - trade | (345 | ) | (1,280 | ) | 804 | 489 | ||||||||||
Inventory | 1,430 | (137 | ) | 39 | 21 | |||||||||||
Prepaid expenses | (218 | ) | (502 | ) | (39 | ) | (444 | ) | ||||||||
Other assets | (137 | ) | 11 | 43 | (24 | ) | ||||||||||
Operating leases | 0 | (3 | ) | 0 | (6 | ) | ||||||||||
Financing leases | 0 | 2 | ||||||||||||||
Accounts payable | 2,656 | 883 | (930 | ) | 1,274 | |||||||||||
Accrued expenses | 1,652 | 492 | 439 | 365 | ||||||||||||
Accrued employee compensation | 885 | 1,092 | (549 | ) | (78 | ) | ||||||||||
Contract liabilities | 60 | (530 | ) | (155 | ) | (22 | ) | |||||||||
Net Cash Used by Operating Activities | (6,506 | ) | (9,780 | ) | (3,132 | ) | (3,344 | ) | ||||||||
Cash Flows - Investing Activities | ||||||||||||||||
Acquisition of UltraMIST, net of $4,000,000 note payable to seller | 0 | (20,000 | ) | |||||||||||||
Purchases of property and equipment | (441 | ) | (39 | ) | ||||||||||||
Net Cash Flows Used by Investing Activities | (441 | ) | (20,039 | ) | ||||||||||||
Disposition of property and equipment | 360 | (101 | ) | |||||||||||||
Net Cash Flows Provided by (Used in) Investing Activities | 360 | (101 | ) | |||||||||||||
Cash Flows - Financing Activities | ||||||||||||||||
Proceeds from sale of convertible preferred stock | 0 | 2,450 | ||||||||||||||
Proceeds from convertible promissory notes | 1,928 | 1,100 | ||||||||||||||
Proceeds from senior promissory notes | 2,940 | 0 | ||||||||||||||
Proceeds from SBA loan | 1,033 | 614 | 0 | 1,033 | ||||||||||||
Proceeds from PIPE offering, net of offering costs | 0 | 21,456 | ||||||||||||||
Proceeds from senior promissory notes | 940 | 13,347 | ||||||||||||||
Proceeds from stock option exercises | 0 | 44 | ||||||||||||||
Proceeds from factoring | 1,244 | 0 | ||||||||||||||
Payments for factoring | (505 | ) | 0 | |||||||||||||
Proceeds from warrant exercises | 0 | 10 | 100 | 125 | ||||||||||||
Proceeds from related party advances | 125 | 0 | ||||||||||||||
Payments of principal on convertible promissory notes, related parties, convertible promissory notes and SBA loans | (237 | ) | (5,458 | ) | ||||||||||||
Payments of principal on finance leases | (143 | ) | (114 | ) | (65 | ) | (46 | ) | ||||||||
Net Cash Flows Provided by Financing Activities | 4,890 | 33,449 | 2,470 | 1,112 | ||||||||||||
Effect of Exchange Rates on Cash | (53 | ) | 1 | (4 | ) | (8 | ) | |||||||||
Net Change in Cash During Period | (2,110 | ) | 3,631 | (306 | ) | (2,341 | ) | |||||||||
Cash at Beginning of Period | 2,437 | 1,761 | 619 | 2,437 | ||||||||||||
Cash at End of Period | $ | 327 | $ | 5,392 | $ | 313 | $ | 96 | ||||||||
Supplemental Information: | ||||||||||||||||
Cash paid for interest | $ | 1,993 | $ | 0 | $ | 574 | $ | 934 | ||||||||
Non-cash Investing and Financing Activities: | ||||||||||||||||
Reclassification of warrant liability due to cashless warrant exercise | $ | 2,030 | $ | 0 | $ | 2,167 | $ | 2,030 | ||||||||
Acquisition of UltraMIST partially financed with convertible promissory note | 0 | 4,000 | ||||||||||||||
Conversion of short-term notes payable to equity | 0 | 565 | ||||||||||||||
Conversion of advances from related parties to equity | 0 | 18 | ||||||||||||||
Additions to right of use assets from new finance lease liabilities | 0 | 128 | ||||||||||||||
Embedded conversion feature on convertible debt | 2,740 | 561 | ||||||||||||||
Warrant issuance in conjunction with convertible notes | 758 | 0 | ||||||||||||||
Warrants issued in conjunction with senior secured promissory note payable | 2,654 | 0 | ||||||||||||||
Common shares issued in conjunction with senior secured promissory note payable | 3,720 | 0 |
1. | Nature of the Business and Basis of Presentation |
2. | Going Concern |
3. | Summary of Significant Accounting Policies |
4. | Loss per Share |
Three Months Ended | Three Months Ended | |||||||||||||||
September 30, 2021 | September 30, 2020 | March 31, 2022 | March 31, 2021 | |||||||||||||
Weighted average shares outstanding | ||||||||||||||||
Common shares | 481,619,621 | 302,119,428 | 498,723 | 481,620 | ||||||||||||
Common shares issuable assuming exercise of nominally priced warrants | 36,691,160 | 82,383,022 | ||||||||||||||
Common shares issuable assuming excercise of nominally priced warrants | 26,691 | 36,871 | ||||||||||||||
Weighted average shares outstanding | 518,310,781 | 384,502,450 | 525,414 | 518,491 |
Nine Months Ended | ||||||||
September 30, 2021 | September 30, 2020 | |||||||
Weighted average shares outstanding | ||||||||
Common shares | 481,619,621 | 323,730,859 | ||||||
Common shares issuable assuming exercise of nominally priced warrants | 36,750,535 | 2,674,538 | ||||||
Weighted average shares outstanding | 518,370,156 | 326,405,397 |
2021 | 2020 | |||||||
Common stock options | 31,760 | 32,618 | ||||||
Common stock purchase warrants | 159,858 | 190,357 | ||||||
Convertible notes payable | 98,675 | 56,989 | ||||||
290,293 | 279,964 |
2022 | 2021 | |||||||
Common stock options | 31,759 | 31,864 | ||||||
Common stock purchase warrants | 183,435 | 142,266 | ||||||
Convertible notes payable | 94,172 | 60,329 | ||||||
309,366 | 234,459 |
2021 | 2020 | |||||||
Inventory - finished goods | $ | 1,239 | $ | 2,328 | ||||
Inventory - parts and accessories | 287 | 628 | ||||||
Total inventory | $ | 1,526 | $ | 2,956 |
Accrued Expenses |
2021 | 2020 | |||||||
Outside services | $ | 135 | $ | 347 | ||||
License fees | 893 | 336 | ||||||
Board of director's fees | 477 | 320 | ||||||
Registration penalties | 1,950 | 264 | ||||||
Commissions | 0 | 239 | ||||||
Legal and professional fees | 110 | 197 | ||||||
Warranty reserve | 180 | 180 | ||||||
Inventory purchases | 122 | 91 | ||||||
Other | 311 | 153 | ||||||
$ | 4,178 | $ | 2,127 |
2022 | 2021 | |||||||
Registration penalties | $ | 2,083 | $ | 1,950 | ||||
License fees | 893 | 893 | ||||||
Board of director’s fees | 537 | 507 | ||||||
Related party | 250 | 0 | ||||||
Other | 1,153 | 1,044 | ||||||
$ | 4,916 | $ | 4,394 |
Revenue |
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||
United States | International | Total | United States | International | Total | |||||||||||||||||||
Accessories and parts | $ | 2,375 | $ | 25 | $ | 2,400 | $ | 1,128 | $ | 84 | $ | 1,212 | ||||||||||||
Product | 1,248 | 51 | 1,299 | 98 | (26 | ) | 72 | |||||||||||||||||
License fees and other | 16 | 10 | 26 | 72 | 10 | 82 | ||||||||||||||||||
$ | 3,639 | $ | 86 | $ | 3,725 | $ | 1,298 | $ | 68 | $ | 1,366 |
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||
United States | International | Total | United States | International | Total | United States | International | Total | United States | International | Total | |||||||||||||||||||||||||||||||||||||
Accessories and parts | $ | 6,278 | $ | 231 | $ | 6,509 | $ | 1,204 | $ | 84 | $ | 1,288 | $ | 2,132 | $ | (4 | ) | $ | 2,128 | $ | 1,435 | $ | 136 | $ | 1,571 | |||||||||||||||||||||||
Product | 1,759 | 307 | 2,066 | 195 | 21 | 216 | 691 | 16 | 707 | 41 | 212 | 253 | ||||||||||||||||||||||||||||||||||||
License fees and other | 140 | 35 | 175 | 7 | 87 | 94 | 8 | 9 | 17 | 33 | 5 | 38 | ||||||||||||||||||||||||||||||||||||
Topic 606 Revenue | $ | 2,831 | $ | 21 | $ | 2,852 | $ | 1,509 | $ | 353 | $ | 1,862 | ||||||||||||||||||||||||||||||||||||
$ | 8,177 | $ | 573 | $ | 8,750 | $ | 1,406 | $ | 192 | $ | 1,598 | |||||||||||||||||||||||||||||||||||||
Rental income | 343 | 0 | 343 | 254 | 0 | 254 | ||||||||||||||||||||||||||||||||||||||||||
Topic 842 Revenue | $ | 343 | $ | 0 | $ | 343 | $ | 254 | $ | 0 | $ | 254 | ||||||||||||||||||||||||||||||||||||
Total Revenue | $ | 3,174 | $ | 21 | $ | 3,195 | $ | 1,763 | $ | 353 | $ | 2,116 |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Service agreements | $ | 145 | $ | 69 | $ | 361 | $ | 137 | ||||||||
Deposit on future equipment purchases | 125 | 0 | 0 | 204 | ||||||||||||
Total contract liabilities | 270 | 69 | 361 | 341 | ||||||||||||
Less: current portion | (40 | ) | (32 | ) | (58 | ) | (48 | ) | ||||||||
Non-current contract liabilities | $ | 230 | $ | 37 | $ | 303 | $ | 293 |
Nine Months ended September 30, 2021 | Three Months ended March 31, 2022 | Three Months ended March 31, 2021 | ||||||||||
Beginning balance | $ | 69 | $ | 341 | $ | 69 | ||||||
New service agreement additions | 100 | 28 | 1 | |||||||||
Deposit on future equipment purchases | 125 | 0 | 125 | |||||||||
Revenue recognized | (24 | ) | (8 | ) | (8 | ) | ||||||
Total contract liabilities | 270 | 361 | 187 | |||||||||
Less current portion | (40 | ) | (58 | ) | (32 | ) | ||||||
Non-current contract liabilities | $ | 230 | $ | 303 | $ | 155 |
7. | Concentration of Credit Risk and Limited Suppliers |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Accounts Receivable: | ||||||||||||||||
Customer A | 14 | % | 46 | % | 15 | % | 16 | % | ||||||||
Customer B | n/a | 24 | % |
March 31, 2022 | March 31,2021 | |||||||
Revenue: | ||||||||
Customer A | 11 | % | n/a |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | September 30, 2020 | March 31, 2022 | March 31, 2021 | |||||||||||||||||||
Purchases: | ||||||||||||||||||||||||
Vendor A | 52 | % | n/a | 46 | % | n/a | 19 | % | 55 | % | ||||||||||||||
Vendor B | n/a | n/a | 15 | % | n/a | n/a | 13 | % | ||||||||||||||||
Vendor C | n/a | 16 | % | n/a | 22 | % | ||||||||||||||||||
Vendor D | n/a | 47 | % | n/a | 27 | % |
Notes payable |
Maturity Date | Stated Interest Rate | Incremental Payment in Kind Interest | Incremental Default Interest | Conversion Price | Principal | Remaining Debt Discount | Remaining Embedded Conversion Option | Carrying Value | |||||||||||||||||||||||||
Senior secured promissory note payable, in default | In default | 12.25 | % | +3.00 | % | +5.00 | % | n/a | $ | 15,000 | (3,642 | ) | 0 | $ | 11,358 | ||||||||||||||||||
Convertible promissory notes payable, in default: | |||||||||||||||||||||||||||||||||
Seller Note issued 8/6/2020 | In default | 12.00 | % | n/a | +5.00 | % | $ | 0.10 | 4,000 | 0 | 0 | 4,000 | |||||||||||||||||||||
Leviston Note issued 4/20/2021 | In default | 5.00 | % | n/a | +10.00 | % | $ | 0.0724 | 815 | (452 | ) | 1,748 | 2,111 | ||||||||||||||||||||
Leviston Note issued 5/14/2021 | In default | 5.00 | % | n/a | +10.00 | % | $ | 0.0724 | 815 | (506 | ) | 1,732 | 2,041 | ||||||||||||||||||||
Leviston Note issued 9/3/2022 | In default | 5.00 | % | n/a | +10.00 | % | $ | 0.0724 | 272 | (251 | ) | 563 | 584 | ||||||||||||||||||||
Five Institutions' Notes issued 9/3/2021 | In default | 5.00 | % | n/a | +10.00 | % | $ | 0.0724 | 543 | (501 | ) | 912 | 954 | ||||||||||||||||||||
Total convertible promissory notes payable, in default | 6,445 | (1,710 | ) | 4,955 | 9,690 | ||||||||||||||||||||||||||||
Convertible promissory notes payable, related parties, in default: | |||||||||||||||||||||||||||||||||
Convertible promissory notes (HealthTronics), related parties | In default | 12.0 | % | n/a | +2.0 | % | $ | 0.10 | 1,372 | 0 | 0 | 1,372 | |||||||||||||||||||||
Convertible promissory notes (Stolarski), related parties | In default | 12.0 | % | n/a | +2.0 | % | $ | 0.10 | 224 | 0 | 0 | 224 | |||||||||||||||||||||
Total convertible promissory notes payable, related parties, in default | 1,596 | 0 | 0 | 1,596 | |||||||||||||||||||||||||||||
SBA loan #2 | February 20, 2026 | 1.00 | % | n/a | n/a | n/a | 1,033 | 0 | 0 | 1,033 | |||||||||||||||||||||||
Advances on future cash receipts | March 11, 2022 | n/a | n/a | n/a | n/a | 763 | (265 | ) | 0 | 498 | |||||||||||||||||||||||
Total debt outstanding, including amounts in default | 24,837 | (5,617 | ) | 4,955 | 24,175 | ||||||||||||||||||||||||||||
Less: current maturities, including notes in default | (23,895 | ) | 5,617 | (4,955 | ) | (23,233 | ) | ||||||||||||||||||||||||||
Total long-term debt as of September 30, 2021 | $ | 942 | $ | 0 | $ | 0 | $ | 942 |
As of 03/31/2022 (dollars in thousands) | Maturity Date | Interest Rate | Conversion Price | Principal | Remaining Debt Discount | Remaining Embedded Conversion Option | Carrying Value | ||||||||||||||||||
Senior secured promissory note payable, in default | In default | 20.50 | % | n/a | $ | 18,000 | (6,106 | ) | 0 | $ | 11,894 | ||||||||||||||
Convertible promissory notes payable, in default: | |||||||||||||||||||||||||
Total convertible promisory notes payable, in default | In default | 15.40 | % | $ | 0.1058 | 6,445 | (488 | ) | 4,575 | 10,532 | |||||||||||||||
Convertible promissory notes payable, related parties, in default: | |||||||||||||||||||||||||
Total convertible promisory notes payable, related parties, in default | In default | 14.0 | % | $ | 0.10 | 1,596 | 0 | 0 | 1,596 | ||||||||||||||||
SBA loan #2 | February 20, 2026 | 1.00 | % | n/a | 1,033 | 0 | 0 | 1,033 | |||||||||||||||||
Advances on future cash receipts | June 13, 2022 | n/a | n/a | 925 | (509 | ) | 0 | 416 | |||||||||||||||||
Total debt outstanding, including amounts in default | 27,999 | (7,103 | ) | 4,575 | 25,471 | ||||||||||||||||||||
Less: current maturities, including notes in default | (27,192 | ) | 7,103 | (4,575 | ) | (24,664 | ) | ||||||||||||||||||
Total long-term debt as of March 31, 2022 | $ | 807 | $ | 0 | $ | 0 | $ | 807 |
Maturity Date | Stated Interest Rate | Incremental Payment in Kind Interest | Incremental Default Interest | Conversion Price | Principal | Remaining Debt Discount | Carrying Value | ||||||||||||||||||||||
Senior secured promissory note payable, in default | In default | 12.25 | % | +3.00 | % | +5.00 | % | n/a | $ | 15,000 | (4,324 | ) | $ | 10,676 | |||||||||||||||
Convertible promissory notes payable, in default: | |||||||||||||||||||||||||||||
Seller Note issued 8/6/2020 | In default | 12.00 | % | n/a | +5.00 | % | $ | 0.10 | 4,000 | 0 | 4,000 | ||||||||||||||||||
Convertible promissory notes payable, related parties, in default: | |||||||||||||||||||||||||||||
Convertible promissory notes (HealthTronics), related parties | In default | 12.0 | % | n/a | +2.0 | % | $ | 0.10 | 1,372 | 0 | 1,372 | ||||||||||||||||||
Convertible promissory notes (Stolarski), related parties | In default | 12.0 | % | n/a | +2.0 | % | $ | 0.10 | 224 | 0 | 224 | ||||||||||||||||||
Total convertible promissory notes payable, related parties, in default | 1,596 | 0 | 1,596 | ||||||||||||||||||||||||||
SBA loan #1 | May 28, 2022 | 1.00 | % | n/a | n/a | n/a | 464 | 0 | 464 | ||||||||||||||||||||
Total debt outstanding, including amounts in default | 21,060 | (4,324 | ) | 16,736 | |||||||||||||||||||||||||
Less: current maturities, including notes in default | (20,917 | ) | 4,324 | (16,593 | ) | ||||||||||||||||||||||||
Total long-term debt as of December 31, 2020 | $ | 143 | $ | 0 | $ | 143 |
As of 12/31/2021 (dollars in thousands) | Maturity Date | Interest Rate | Conversion Price | Principal | Remaining Debt Discount | Remaining Embedded Conversion Option | Carrying Value | ||||||||||||||||||
Senior secured promissory note payable, in default | In default | 20.25 | % | n/a | $ | 15,000 | (3,414 | ) | 0 | $ | 11,586 | ||||||||||||||
Convertible promissory notes payable, in default: | |||||||||||||||||||||||||
Total convertible promisory notes payable, in default | In default | 15.40 | % | $ | 0.1071 | 6,445 | (1,099 | ) | 6,255 | 11,601 | |||||||||||||||
Convertible promissory notes payable, related parties, in default: | |||||||||||||||||||||||||
Total convertible promisory notes payable, related parties, in default | In default | 14.0 | % | $ | 0.10 | 1,596 | 0 | 0 | 1,596 | ||||||||||||||||
SBA loan #2 | February 20, 2026 | 1.00 | % | n/a | 1,033 | 0 | 0 | 1,033 | |||||||||||||||||
Advances on future cash receipts | March 11, 2022 | n/a | n/a | 1,500 | (1,054 | ) | 0 | 446 | |||||||||||||||||
Total debt outstanding, including amounts in default | 25,574 | (5,567 | ) | 6,255 | 26,262 | ||||||||||||||||||||
Less: current maturities, including notes in default | (24,699 | ) | 5,567 | (6,255 | ) | (25,387 | ) | ||||||||||||||||||
Total long-term debt as of December 31, 2021 | $ | 875 | $ | 0 | $ | 0 | $ | 875 |
Issuance date (1) | Issuance date (1) | Issuance date (1) | Issuance date (1) | |||||||||||||||||
Binomial Assumptions | April 20, 2021 | May 14, 2021 | September 3, 2021 | September 3, 2021 | September 30, 2021 | |||||||||||||||
Principal | $ | 815 | $ | 815 | $ | 272 | $ | 544 | $ | 2,446 | ||||||||||
Conversion Price(1) | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.18 | $ | 0.14 | ||||||||||
Interest Rate (annual) (2) | 0.07 | % | 0.06 | % | 0.08 | % | 0.08 | % | 0.06 | % | ||||||||||
Volatility (annual) (3) | 69.60 | % | 69.60 | % | 80.10 | % | 80.10 | % | 191.15 | % | ||||||||||
Time to Maturity (Years) | 1.0 | 1.0 | 1.0 | 1.0 | 0.7 | |||||||||||||||
Fair Value of Conversion Option | $ | 1,355 | $ | 1,385 | $ | 467 | $ | 932 | $ | 5,171 |
At 03/31/2022 | At 12/31/2021 | |||||||
Conversion Price(1) | $ | 0.11 | $ | 0.11 | ||||
Interest Rate (annual) (2) | 0.15 | % | 0.18 | % | ||||
Volatility (annual) (3) | 185.75 | % | 289.65 | % | ||||
Time to Maturity (Years) | 0.26 | 0.50 |
Common Stock Purchase Warrants |
Warrant class | Outstanding December 31, 2020 | Issuances | Exercised | Outstanding September 30, 2021 | Exercise price/share | Expiration date | |||||||||||||||
Class E Warrants | 141,091,485 | 0 | 0 | 141,091,485 | $ | 0.25 | August 2023 | ||||||||||||||
Class O Warrants | 909,091 | 0 | 0 | 909,091 | 0.11 | January 2022 | |||||||||||||||
Class P Warrants | 265,000 | 0 | 0 | 265,000 | 0.20 | June 2024 | |||||||||||||||
LGH Warrant | 35,000,000 | 0 | (11,400,000 | ) | 23,600,000 | 0.01 | June 2025 | ||||||||||||||
NH Expansion Warrant | 13,091,160 | 0 | 0 | 13,091,160 | 0.01 | August 2030 | |||||||||||||||
Leviston Warrants - April 2021 | 0 | 3,968,254 | 0 | 3,968,254 | 0.18 | April 2025 | |||||||||||||||
Leviston Warrants - May 2021 | 0 | 3,968,354 | 0 | 3,968,354 | 0.18 | April 2025 | |||||||||||||||
Leviston Warrants - September 2021 | 1,322,751 | 0 | 1,322,751 | 0.18 | April 2025 | ||||||||||||||||
Five Institutions Warrants - September 2021 | 2,777,779 | 2,777,779 | 0.18 | September 2025 | |||||||||||||||||
GCF Warrants - September 2021 | 5,555,556 | 0 | 5,555,556 | 0.18 | September 2025 | ||||||||||||||||
Total | 190,356,736 | 17,592,694 | (11,400,000 | ) | 196,549,430 |
Warrants | Weighted Average Exercise Price per share | Weighted Average Remaining Contractual Life (years) | ||||||||||
Outstanding at December 31, 2021 | 204,882,664 | $ | 0.20 | 2.54 | ||||||||
Exercised | (15,909,091 | ) | 0.01 | |||||||||
Issued | 16,152,079 | 0.18 | ||||||||||
Outstanding at March 31, 2022 | 205,125,652 | $ | 0.18 | 2.67 |
Fair value measured at March 31, 2022 | ||||||||||||||||
Fair value at March 31, 2022 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||
Warrant liability | $ | 8,300 | $ | 0 | $ | 0 | $ | 8,300 | ||||||||
Embedded conversion option | 4,575 | 0 | 0 | 4,575 | ||||||||||||
Total fair value | 12,875 | 0 | 0 | 12,875 |
Fair value measured at December 31, 2021 | ||||||||||||||||
Fair value at December 31, 2021 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | |||||||||||||
Warrant liability | $ | 9,614 | 0 | 0 | 9,614 | |||||||||||
Embedded conversion option | 6,255 | 0 | 0 | 6,255 | ||||||||||||
Total fair value | 15,869 | 0 | 0 | 15,869 |
Warrant Liability | Conversion Feature | Total | ||||||||||
Balance at December 31, 2021 | $ | 9,614 | $ | 6,255 | $ | 15,869 | ||||||
Cashless exercise | (2,167 | ) | 0 | (2,167 | ) | |||||||
Warrants issued | 2,654 | 0 | 2,654 | |||||||||
Change in fair value | (1,801 | ) | (1,680 | ) | (3,481 | ) | ||||||
Balance at March 31, 2022 | $ | 8,300 | $ | 4,575 | $ | 12,875 |
Warrants Outstanding | Fair Value per Share | Fair Value | ||||||||||
Balance December 31, 2020 | 48,091,160 | $ | 0.18 | $ | 8,855,379 | |||||||
Cashless exercise of LGH Warrants | (11,400,000 | ) | 0.18 | (2,030,052 | ) | |||||||
Warrants reclassified as liabilities | 17,592,594 | 0.09 | 1,531,187 | |||||||||
Gain on remeasurement of warrant liability | 0 | (2,686,773 | ) | |||||||||
Balance September 30, 2021 | 54,283,754 | $ | 0.10 | $ | 5,669,741 |
Warrants Outstanding | Fair Value per Share | Fair Value | ||||||||||
Balance at December 31, 2021 | 62,617,188 | $ | 0.15 | $ | 9,614,134 | |||||||
Warrants classified as liabilities | (15,000,000 | ) | 0.14 | (2,167,022 | ) | |||||||
Warrants issued | 16,152,079 | 0.18 | 2,654,178 | |||||||||
Gain on remeasurement of warrant liability | 0 | (1,801,225 | ) | |||||||||
Balance at March 31, 2022 | 63,769,267 | $ | 0.13 | $ | 8,300,065 |
Black Scholes option pricing model | September 30, 2021 | December 31, 2020 | ||||||
Exercise Price(1) | $ | 0.01 | $ | 0.01 | ||||
Interest Rate (annual) (2) | 1.52 | % | 0.65 | % | ||||
Volatility (annual) (3) | 130.8 | % | 143.9 | % | ||||
Time to Maturity (Years) | 8.9 | 9.6 | ||||||
Calculated fair value per share | $ | 0.119 | $ | 0.189 |
March 31, 2022 | December 31, 2021 | New Issuances at Issue Date | ||||||||||
Weighted average remaining life in years | 5.65 | 4.67 | 8.63 | |||||||||
Weighted average volatility | 131 | % | 116 | % | 143 | % | ||||||
Weighted average risk free interest rate | 2.2 | % | 1.2 | % | 2.0 | % | ||||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % |
11. |
Black Scholes option pricing model | September 30, 2021 | December 31, 2020 | ||||||
Exercise Price(1) | $ | 0.01 | $ | 0.01 | ||||
Interest Rate (annual) (2) | 0.98 | % | 0.36 | % | ||||
Volatility (annual) (3) | 117.6 | % | 98.6 | % | ||||
Time to Maturity (Years) | 3.7 | 4.4 | ||||||
Calculated fair value per share | $ | 0.114 | $ | 0.182 |
Binomial Assumptions | Issuance date (1) April 20, 2021 | Issuance date (1) May 14, 2021 | Issuance date (1) September 3, 2021 | September 30, 2021 | ||||||||||||
Exercise Price(1) | $ | 0.18 | $ | 0.18 | 0.18 | 0.18 | ||||||||||
Interest Rate (annual) (2) | 0.56 | % | 0.56 | % | 0.53 | % | 0.61 | % | ||||||||
Volatility (annual) (3) | 91.9 | % | 90.3 | % | 86.8 | % | 112.9 | % | ||||||||
Time to Maturity (Years) | 4.0 | 3.9 | 3.6 | 3.6 | ||||||||||||
Calculated fair value per share | $ | 0.097 | $ | 0.094 | $ | 0.069 | $ | 0.079 |
Binomial Assumptions | Issuance date (1) September 3, 2021 | September 30, 2021 | ||||||
Exercise Price(1) | $ | 0.18 | $ | 0.18 | ||||
Interest Rate (annual) (2) | 0.60 | % | 0.74 | % | ||||
Volatility (annual) (3) | 89.9 | % | 114.5 | % | ||||
Time to Maturity (Years) | 4.0 | 3.9 | ||||||
Calculated fair value per share | $ | 0.075 | $ | 0.083 |
Binomial Assumptions | Issuance date (1) September 27, 2021 | September 30, 2021 | ||||||
Exercise Price(1) | $ | 0.18 | $ | 0.18 | ||||
Interest Rate (annual) (2) | 0.98 | % | 0.98 | % | ||||
Volatility (annual) (3) | 117.6 | % | 117.6 | % | ||||
Time to Maturity (Years) | 4.0 | 4.0 | ||||||
Calculated fair value per share | $ | 0.086 | $ | 0.037 |
September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||
Operating Leases | Financing Leases | Total | Operating Leases | Financing Leases | Total | |||||||||||||||||||
Right of use assets | $ | 725 | $ | 644 | $ | 1,369 | $ | 725 | $ | 644 | $ | 1,369 | ||||||||||||
Less: Accumulated amortization | (512 | ) | (395 | ) | (907 | ) | (339 | ) | (235 | ) | (574 | ) | ||||||||||||
Right of use assets, net | $ | 213 | $ | 249 | $ | 462 | $ | 386 | $ | 409 | $ | 795 | ||||||||||||
Lease liabilities | $ | 223 | $ | 285 | $ | 508 | $ | 415 | $ | 427 | $ | 842 | ||||||||||||
Less: current portion | (126 | ) | (201 | ) | (327 | ) | (257 | ) | (194 | ) | (451 | ) | ||||||||||||
Lease Liabilities | $ | 97 | $ | 84 | $ | 181 | $ | 158 | $ | 233 | $ | 391 |
2021 | 2020 | |||||||
Finance lease costs: | ||||||||
Amortization of right-of-use assets | $ | 159 | $ | 94 | ||||
Interest on lease liabilities | 33 | 33 | ||||||
Operating lease costs | 263 | 118 | ||||||
Total lease costs | $ | 455 | $ | 245 |
2021 | 2020 | |||||||
Cash paid for amounts included in measurement of lease liabilities: | ||||||||
Operating cash flows from finance leases | $ | (176 | ) | $ | (103 | ) | ||
Operating cash flows from operating leases | $ | (263 | ) | $ | (118 | ) |
Amount | ||||
Year ending December 31, | ||||
2021 (remainder of year) | $ | 70 | ||
2022 | 94 | |||
2023 | 65 | |||
2024 | 8 | |||
2025 | 0 | |||
Total lease payments | 237 | |||
Less: Present value adjustment | (14 | ) | ||
Lease liability | $ | 223 |
Amount | ||||
Year ending December 31, | ||||
2021 (remainder of year) | $ | 59 | ||
2022 | 200 | |||
2023 | 18 | |||
Total lease payments | 277 | |||
Less: Present value adjustment | 8 | |||
Lease liability | $ | 285 |
Related Party Transactions |
13. | Subsequent Events |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS. |
Item 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
Item 3. | DEFAULTS UPON SENIOR SECURITIES. |
Item 4. | MINE SAFETY DISCLOSURES. |
Item 5. | OTHER INFORMATION. |
Item 6. | EXHIBITS |
Exhibit No. | Description |
Form of | |
Rule 13a-14(a)/15d-14(a) Certification of the Principal Executive Officer. | |
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer. | |
Section 1350 Certification of the Principal Executive Officer. | |
Section 1350 Certification of the Chief Financial Officer. | |
101.INS* | XBRL Instance. |
101.SCH* | XBRL Taxonomy Extension Schema. |
101.CAL* | XBRL Taxonomy Extension Calculation. |
101.DEF* | XBRL Taxonomy Extension Definition. |
101.LAB* | XBRL Taxonomy Extension Labels. |
101.PRE* | XBRL Taxonomy Extension Presentation. |
SANUWAVE HEALTH, INC. | ||
Dated: | By: | /s/ Kevin A. Richardson, II |
Name: Kevin A. Richardson, II | ||
Title: Chief Executive Officer |
Signatures | Capacity | Date | ||
By: /s/ Kevin A. Richardson, II Name: Kevin A. Richardson, II | Chief Executive Officer and Chairman of the Board of Directors (principal executive officer) | |||
By: /s/ Lisa E. Sundstrom Name: Lisa E. Sundstrom | Chief Financial Officer (principal financial and accounting officer) |