☒ | 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.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | N/A | N/A |
Large accelerated filer ☐ | Accelerated filer ☐ | |
Non-accelerated filer ☒ | Smaller reporting company ☒ | |
Emerging growth company ☐ |
Page | |||
PART I – FINANCIAL INFORMATION | |||
Item 1. | 4 | ||
4 | |||
5 | |||
6 | |||
8 | |||
9 | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II – OTHER INFORMATION | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
25 |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 1,484 | $ | 619 | $ | 1,112 | $ | 619 | ||||||||
Accounts receivable, net of allowance for doubtful accounts of $0.8 million, respectively | 1,749 | 2,415 | 2,403 | 2,415 | ||||||||||||
Inventory | 925 | 1,040 | 1,413 | 1,040 | ||||||||||||
Prepaid expenses and other current assets | 1,181 | 326 | 1,935 | 326 | ||||||||||||
Total Current Assets | 5,339 | 4,400 | 6,863 | 4,400 | ||||||||||||
Property, Equipment and Other, net | 535 | 1,118 | 673 | 1,118 | ||||||||||||
Other Intangible Assets, net | 5,489 | 5,841 | 5,313 | 5,841 | ||||||||||||
Goodwill | 7,260 | 7,260 | 7,260 | 7,260 | ||||||||||||
Total Assets | $ | 18,623 | $ | 18,619 | $ | 20,109 | $ | 18,619 | ||||||||
LIABILITIES | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Senior secured promissory note payable, in default | $ | 12,334 | $ | 11,586 | $ | 12,773 | $ | 11,586 | ||||||||
Convertible promissory notes payable, in default | 6,523 | 11,601 | 4,000 | 11,601 | ||||||||||||
Convertible promissory notes, related parties, in default | 1,596 | 1,596 | 1,373 | 1,596 | ||||||||||||
Short-term loans | 1,484 | 0 | ||||||||||||||
Convertible promissory notes payable | 9,174 | - | ||||||||||||||
Convertible promissory notes payable, related parties | 4,485 | - | ||||||||||||||
Advances on future cash receipts | 398 | 446 | 194 | 446 | ||||||||||||
Accounts payable | 7,083 | 7,644 | 5,055 | 7,644 | ||||||||||||
Accrued expenses | 5,900 | 4,394 | 4,100 | 4,394 | ||||||||||||
Accrued employee compensation | 4,264 | 4,247 | 3,792 | 4,247 | ||||||||||||
Due under factoring ageement | 1,792 | 1,737 | 1,510 | 1,737 | ||||||||||||
Warrant liability | 5,295 | 9,614 | 1,196 | 9,614 | ||||||||||||
Current portion of SBA loans | 272 | 158 | - | 158 | ||||||||||||
Accrued interest | 3,600 | 2,521 | 3,988 | 2,521 | ||||||||||||
Accrued interest, related parties | 402 | 289 | 546 | 289 | ||||||||||||
Current portion of lease liabilities | 185 | 268 | ||||||||||||||
Current portion of contract liabilities | 64 | 48 | ||||||||||||||
Current portion of lease and contract liabilities | 249 | 316 | ||||||||||||||
Other | 107 | 114 | 30 | 114 | ||||||||||||
Total Current Liabilities | 51,299 | 56,263 | 52,465 | 56,263 | ||||||||||||
Non-current Liabilities | ||||||||||||||||
SBA loans | 761 | 875 | - | 875 | ||||||||||||
Lease liabilities | 40 | 118 | 263 | 118 | ||||||||||||
Contract liabilities | 295 | 293 | 205 | 293 | ||||||||||||
Deferred tax liability | 28 | 28 | 28 | 28 | ||||||||||||
Total Non-current Liabilities | 1,124 | 1,314 | 496 | 1,314 | ||||||||||||
Total Liabilities | 52,423 | 57,577 | 52,961 | 57,577 | ||||||||||||
Commitments and Contingencies (Footnote 11) | ||||||||||||||||
STOCKHOLDERS' DEFICIT | ||||||||||||||||
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 June 30, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Common Stock, par value $0.001, 800,000,000 shares authorized; 529,293,205 and 481,619,621 issued and outstanding at June 30, 2022 December 31, 2021, respectively | 529 | 482 | ||||||||||||||
Preferred Stock, par value $0.001, 5,000,000 shares authorized; 6,175 shares Series A, 293 shares Series B, 90 shares Series C and 8 shares Series D no shares issued and outstanding at September 30, 2022 and December 31, 2021 | - | - | ||||||||||||||
Common Stock, par value $0.001, 800,000,000 shares authorized; 548,737,651 and 481,619,621 issued and outstanding at September 30, 2022 December 31, 2021, respectively | 549 | 482 | ||||||||||||||
Additional Paid-in Capital | 151,409 | 144,582 | 152,750 | 144,582 | ||||||||||||
Accumulated Deficit | (185,671 | ) | (183,949 | ) | (186,084 | ) | (183,949 | ) | ||||||||
Accumulated Other Comprehensive Loss | (67 | ) | (73 | ) | (67 | ) | (73 | ) | ||||||||
Total Stockholders' Deficit | (33,800 | ) | (38,958 | ) | ||||||||||||
Total Liabilities and Stockholders' Deficit | $ | 18,623 | $ | 18,619 | ||||||||||||
Total Stockholders’ Deficit | (32,852 | ) | (38,958 | ) | ||||||||||||
Total Liabilities and Stockholders’ Deficit | $ | 20,109 | $ | 18,619 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Accessory and parts revenue | $ | 2,663 | $ | 2,008 | $ | 4,854 | $ | 3,579 | $ | 3,012 | $ | 2,067 | $ | 7,866 | $ | 5,645 | ||||||||||||||||
Product | 862 | 514 | 1,507 | 767 | 902 | 1,299 | 2,408 | 2,066 | ||||||||||||||||||||||||
Rental Income | 344 | 276 | 688 | 530 | 247 | 333 | 935 | 864 | ||||||||||||||||||||||||
License fees and other | 13 | 111 | 28 | 149 | 5 | 26 | 33 | 175 | ||||||||||||||||||||||||
Total Revenue | 3,882 | 2,909 | 7,077 | 5,025 | 4,166 | 3,725 | 11,242 | 8,750 | ||||||||||||||||||||||||
Cost of Revenues | 1,096 | 1,048 | 1,986 | 2,103 | 606 | 1,555 | 2,590 | 3,658 | ||||||||||||||||||||||||
Gross Margin | 2,786 | 1,861 | 5,091 | 2,922 | 3,560 | 2,170 | 8,652 | 5,092 | ||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||
General and administrative | 2,937 | 2,923 | 5,078 | 6,045 | 3,404 | 2,864 | 8,482 | 8,909 | ||||||||||||||||||||||||
Selling and marketing | 1,672 | 2,520 | 3,387 | 4,300 | 1,650 | 2,150 | 5,037 | 6,450 | ||||||||||||||||||||||||
Research and development | 171 | 272 | 337 | 626 | 157 | 297 | 494 | 923 | ||||||||||||||||||||||||
Gain on disposal of assets | (136 | ) | 0 | (690 | ) | 0 | - | - | (690 | ) | - | |||||||||||||||||||||
Depreciation and amortization | 210 | 192 | 386 | 391 | 189 | 194 | 575 | 585 | ||||||||||||||||||||||||
Total Operating Expenses | 4,854 | 5,907 | 8,498 | 11,362 | 5,400 | 5,505 | 13,898 | 16,867 | ||||||||||||||||||||||||
Operating Loss | (2,068 | ) | (4,046 | ) | (3,407 | ) | (8,440 | ) | (1,840 | ) | (3,335 | ) | (5,246 | ) | (11,775 | ) | ||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||||||||||
Interest expense | (2,826 | ) | (1,437 | ) | (5,903 | ) | (2,559 | ) | (3,301 | ) | (1,781 | ) | (9,203 | ) | (4,340 | ) | ||||||||||||||||
Interest expense, related party | (56 | ) | (48 | ) | (112 | ) | (95 | ) | (439 | ) | (55 | ) | (551 | ) | (150 | ) | ||||||||||||||||
Change in fair value of derivative liabilities | 7,861 | (591 | ) | 11,343 | 44 | 5,252 | 1,555 | 16,597 | 1,599 | |||||||||||||||||||||||
Loss on issuance of debt | 0 | (2,484 | ) | (3,434 | ) | (2,484 | ) | - | (1,088 | ) | (3,434 | ) | (3,572 | ) | ||||||||||||||||||
Loss on extinguishment of debt | (211 | ) | 0 | (211 | ) | 0 | ||||||||||||||||||||||||||
Gain / (loss) on extinguishment of debt | (86 | ) | 460 | (297 | ) | 460 | ||||||||||||||||||||||||||
Gain / (loss) on foreign currency exchange | 2 | (3 | ) | 2 | 4 | 1 | (2 | ) | (1 | ) | 2 | |||||||||||||||||||||
Other Income (Expense), net | 4,770 | (4,563 | ) | 1,685 | (5,090 | ) | 1,427 | (911 | ) | 3,111 | (6,001 | ) | ||||||||||||||||||||
Net Loss before Income Taxes | 2,702 | (8,609 | ) | (1,722 | ) | (13,530 | ) | (413 | ) | (4,246 | ) | (2,135 | ) | (17,776 | ) | |||||||||||||||||
Provision for Income Taxes | 0 | 6 | 0 | 22 | - | 6 | - | 28 | ||||||||||||||||||||||||
Net Income (loss) | 2,702 | (8,615 | ) | (1,722 | ) | (13,552 | ) | |||||||||||||||||||||||||
Net Loss | (413 | ) | (4,252 | ) | (2,135 | ) | (17,804 | ) | ||||||||||||||||||||||||
Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||
Other Comprehensive Loss | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 0 | (3 | ) | 0 | (11 | ) | - | - | - | (12 | ) | |||||||||||||||||||||
Total Comprehensive Loss | $ | (413 | ) | $ | (4,252 | ) | $ | (2,135 | ) | $ | (17,816 | ) | ||||||||||||||||||||
Total Comprehensive Income (Loss) | $ | 2,702 | $ | (8,618 | ) | $ | (1,722 | ) | $ | (13,563 | ) | |||||||||||||||||||||
Gain (loss) per Share: | ||||||||||||||||||||||||||||||||
Basic | $ | 0.01 | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.03 | ) | |||||||||||||||||||||
Diluted | $ | 0.00 | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.03 | ) | |||||||||||||||||||||
Loss per Share: | ||||||||||||||||||||||||||||||||
Basic and Diluted | $ | (0.00 | ) | | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.03 | ) | |||||||||||||||||||
Weighted average shares outstanding, basic and diluted | ||||||||||||||||||||||||||||||||
Basic | 538,560,051 | 518,310,781 | 532,589,825 | 518,400,008 | ||||||||||||||||||||||||||||
Diluted | 871,984,091 | 518,310,781 | 532,589,825 | 518,400,008 | ||||||||||||||||||||||||||||
Basic and Diluted | 561,069,625 | 518,310,781 | 542,484,779 | 518,370,156 |
Three Months Ended June 30, 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 March 31, 2022 | 0 | $ | 0 | 517,195,705 | $ | 517 | $ | 150,533 | $ | (188,373 | ) | $ | (73 | ) | $ | (37,396 | ) | |||||||||||||||
Shares issued for services | 0 | 0 | 12,097,500 | 12 | 876 | 888 | ||||||||||||||||||||||||||
Net income (loss) | - | 0 | - | 0 | 0 | 2,702 | 0 | 2,702 | ||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | 6 | 6 | ||||||||||||||||||||||||
Balances as of June 30, 2022 | 0 | $ | 0 | 529,293,205 | $ | 529 | $ | 151,409 | $ | (185,671 | ) | $ | (67 | ) | $ | (33,800 | ) |
Three Months Ended September 30, 2022 | ||||||||||||||||||||||||||||||||
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, 2022 | - | $ | - | 529,293,205 | $ | 529 | $ | 151,409 | $ | (185,671 | ) | $ | (67 | ) | $ | (33,800 | ) | |||||||||||||||
Shares issued for settlement of debt and warrants | - | - | 19,444,446 | 20 | 1,341 | 1,361 | ||||||||||||||||||||||||||
Net loss | - | - | - | - | - | (413 | ) | - | (413 | ) | ||||||||||||||||||||||
Balances as of September 30, 2022 | - | $ | - | 548,737,651 | $ | 549 | $ | 152,750 | $ | (186,084 | ) | $ | (67 | ) | $ | (32,852 | ) |
Three Months Ended June 30, 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 March 31, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (161,627 | ) | $ | (70 | ) | $ | (16,633 | ) | |||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (8,615 | ) | 0 | (8,615 | ) | ||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | (4 | ) | (4 | ) | ||||||||||||||||||||||
Balances as of June 30, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (170,242 | ) | $ | (74 | ) | $ | (25,252 | ) |
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 | - | $ | - | 481,619,621 | $ | 482 | $ | 144,582 | $ | (170,242 | ) | $ | (74 | ) | $ | (25,252 | ) | |||||||||||||||
Net loss | - | - | - | - | - | (4,252 | ) | - | (4,252 | ) | ||||||||||||||||||||||
Balances as of September 30, 2021 | - | $ | - | 481,619,621 | $ | 482 | $ | 144,582 | $ | (174,494 | ) | $ | (74 | ) | $ | (29,504 | ) |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | 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 | 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, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (183,949 | ) | $ | (73 | ) | $ | (38,958 | ) | - | $ | - | 481,619,621 | $ | 482 | $ | 144,582 | $ | (183,949 | ) | $ | (73 | ) | $ | (38,958 | ) | ||||||||||||||||||||||||||||||
Cashless warrant exercise | 0 | 14,000,000 | 14 | 2,152 | 0 | 0 | 2,166 | - | 14,000,000 | 14 | 2,152 | - | - | 2,166 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant exercise | 0 | 0 | 909,091 | 1 | 99 | 0 | 0 | 100 | - | - | 909,091 | 1 | 99 | - | - | 100 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in conjuction with Note Payable | 0 | 0 | 20,666,993 | 20 | 3,700 | 0 | 0 | 3,720 | - | - | 20,666,993 | 20 | 3,700 | - | - | 3,720 | ||||||||||||||||||||||||||||||||||||||||||||||||
Shared issed for settlement of debt and warrants | - | - | 19,444,446 | 20 | 1,341 | - | - | 1,361 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued for services | 12,097,500 | 12 | 876 | 0 | 0 | 888 | 12,097,500 | 12 | 876 | - | - | 888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (1,722 | ) | 0 | (1,722 | ) | - | - | - | - | - | (2,135 | ) | - | (2,135 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | 6 | 6 | - | - | - | - | - | - | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2022 | 0 | $ | 0 | 529,293,205 | $ | 529 | $ | 151,409 | $ | (185,671 | ) | $ | (67 | ) | $ | (33,800 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balances as of September 30, 2022 | - | $ | - | 548,737,651 | $ | 549 | $ | 152,750 | $ | (186,084 | ) | $ | (67 | ) | $ | (32,852 | ) |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Shares | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Issued and | Issued and | Additional Paid- | Accumulated | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 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 | ) | - | $ | - | 470,694,621 | $ | 471 | $ | 142,563 | $ | (156,690 | ) | $ | (62 | ) | $ | (13,718 | ) | ||||||||||||||||||||||||||||||
Cashless warrant exercise | 0 | 0 | 10,925,000 | 11 | (11 | ) | 0 | 0 | 0 | - | - | 10,925,000 | 11 | (11 | ) | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of warrant liability due to cashless warrant exercise | 0 | 0 | 0 | 0 | 2,030 | 0 | 0 | 2,030 | - | - | - | - | 2,030 | - | - | 2,030 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (13,552 | ) | 0 | (13,552 | ) | - | - | - | - | - | (17,804 | ) | - | (17,804 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | - | 0 | - | 0 | 0 | 0 | (12 | ) | (12 | ) | - | - | - | - | - | - | (12 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balances as of June 30, 2021 | 0 | $ | 0 | 481,619,621 | $ | 482 | $ | 144,582 | $ | (170,242 | ) | $ | (74 | ) | $ | (25,252 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balances as of September 30, 2021 | - | $ | - | 481,619,621 | $ | 482 | $ | 144,582 | $ | (174,494 | ) | $ | (74 | ) | $ | (29,504 | ) |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash Flows - Operating Acivities: | ||||||||||||||||
Net income (loss) | $ | (1,722 | ) | $ | (13,552 | ) | ||||||||||
Net loss | $ | (2,135 | ) | $ | (17,804 | ) | ||||||||||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||||||||||
Amortization of intangibles | 352 | 352 | ||||||||||||||
Depreciation | 94 | 198 | ||||||||||||||
Depreciation and Amortization | 681 | 970 | ||||||||||||||
Bad debt expense | 52 | 240 | 62 | 307 | ||||||||||||
Income tax expense | 0 | 22 | - | 28 | ||||||||||||
Shares issued for service | 888 | 0 | 888 | - | ||||||||||||
Loss in extinguishment of debt | 211 | 0 | ||||||||||||||
Loss (Gain) on extinguishment of debt | 297 | (460 | ) | |||||||||||||
Gain on sale of property and equipment, net | (541 | ) | 0 | (690 | ) | - | ||||||||||
Change in fair value of derivative liabilities | (11,343 | ) | (44 | ) | (16,597 | ) | (1,599 | ) | ||||||||
Loss on issuance of debt | 3,434 | 2,484 | 3,434 | 3,572 | ||||||||||||
Amortization of debt issuance costs and original issue discount | 1,304 | 719 | 2,998 | 1,418 | ||||||||||||
Accrued interest | 1,078 | 390 | 1,618 | 929 | ||||||||||||
Interest payable, related parties | 112 | 95 | 168 | 150 | ||||||||||||
Changes in operating assets and liabilities | ||||||||||||||||
Accounts receivable - trade | 733 | 218 | 69 | (345 | ) | |||||||||||
Inventory | 115 | 521 | (373 | ) | 1,430 | |||||||||||
Prepaid expenses | (855 | ) | (191 | ) | ||||||||||||
Other assets | 47 | (83 | ) | |||||||||||||
Prepaid expenses and other assets | (1,437 | ) | (355 | ) | ||||||||||||
Accounts payable | (562 | ) | 1,475 | (1,863 | ) | 2,656 | ||||||||||
Accrued expenses | 1,407 | 1,350 | 271 | 1,652 | ||||||||||||
Accrued employee compensation | 103 | 553 | (473 | ) | 885 | |||||||||||
Contract liabilities | (108 | ) | 4 | |||||||||||||
Net Cash Used by Operating Activities | (5,201 | ) | (5,249 | ) | ||||||||||||
Contract liabilties | (94 | ) | 60 | |||||||||||||
Net Cash Used in Operating Activities | (13,176 | ) | (6,506 | ) | ||||||||||||
Cash Flows - Investing Activities | ||||||||||||||||
Proceeds from sale of property and equipment | 948 | 0 | 1,022 | - | ||||||||||||
Purchase of property and equipment | 0 | (277 | ) | - | (441 | ) | ||||||||||
Net Cash Flows Used in Investing Activities | 948 | (277 | ) | |||||||||||||
Net Cash Flows Provided by (Used in) Investing Activities | 1,022 | (441 | ) | |||||||||||||
Cash Flows - Financing Activities | ||||||||||||||||
Proceeds from senior promissory notes | 2,940 | 1,263 | 2,940 | 940 | ||||||||||||
Proceeds from short term notes | 2,130 | 1,033 | 640 | 125 | ||||||||||||
Proceeds from factoring | 55 | 1,038 | ||||||||||||||
Proceeds from factoring, net | (227 | ) | 1,244 | |||||||||||||
Proceeds from SBA loan | - | 1,033 | ||||||||||||||
Proceeds from warrant exercises | 100 | 0 | 100 | - | ||||||||||||
Proceeds from convertible promissory notes | 12,366 | 1,928 | ||||||||||||||
Payments of principal on finance leases | (121 | ) | (94 | ) | (174 | ) | (143 | ) | ||||||||
Proceeds from related party advances | 0 | 125 | ||||||||||||||
Payments of principal on convertible promissory notes, related parties, convertible promissory notes and SBA loans | (2,981 | ) | (237 | ) | ||||||||||||
Net Cash Flows Provided by Financing Activities | 5,104 | 3,365 | 12,664 | 4,890 | ||||||||||||
Effect of Exchange Rates on Cash | 14 | (12 | ) | (17 | ) | (53 | ) | |||||||||
Net Change in Cash During Period | 865 | (2,173 | ) | 493 | (2,110 | ) | ||||||||||
Cash at Beginning of Period | 619 | 2,437 | 619 | 2,437 | ||||||||||||
Cash at End of Period | $ | 1,484 | $ | 264 | $ | 1,112 | $ | 327 | ||||||||
Supplemental Information: | ||||||||||||||||
Cash paid for interest | $ | 2,045 | $ | 1,434 | $ | 3,345 | $ | 1,993 | ||||||||
Non-cash Investing and Financing Activities: | ||||||||||||||||
Reclassification of warrant liability due to cashless warrant exercise | $ | 2,167 | $ | 2,030 | $ | 2,166 | $ | 2,030 | ||||||||
Settlement of debt and warrants with stock | 1,361 | $ | - | |||||||||||||
Warrants issued in conjunction with senior secured promissory note payable | 2,654 | 0 | 2,654 | - | ||||||||||||
Common shares issued in conjunction with senior secured promissory note payable | 3,720 | 0 | 3,720 | - | ||||||||||||
Embedded conversion option with issuances of convertible debt | 0 | 2,740 | 2,309 | 2,740 | ||||||||||||
Working capital balances refinanced into Convertible notes payable | 2,273 | - | ||||||||||||||
Warrant issuance in conjunction with convertible debt | 0 | 758 | 1,463 | 758 |
1. | Nature of the Business and Basis of Presentation |
2. | Going Concern |
3. | Summary of Significant Accounting Policies |
4. |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||||||||
Weighted average shares outstanding | ||||||||||||||||||||||||||||||||
Common shares | 518,074 | 481,620 | 508,399 | 481,620 | 540,584 | 481,620 | 519,127 | 481,620 | ||||||||||||||||||||||||
Common shares issuable assuming excercise of nominally priced warrants | 20,486 | 36,691 | 24,191 | 36,780 | ||||||||||||||||||||||||||||
Common shares issuable assuming exercise of nominally priced warrants | 20,486 | 36,691 | 23,358 | 36,751 | ||||||||||||||||||||||||||||
Weighted average shares outstanding | 538,560 | 518,311 | 532,590 | 518,400 | 561,070 | 518,311 | 542,485 | 518,370 |
Six Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||
Common stock options | 22,046 | 31,760 | 21,246 | 31,760 | ||||||||||||
Common stock purchase warrants | 189,157 | 150,202 | 984,799 | 159,858 | ||||||||||||
Convertible notes payable | 122,271 | 74,155 | 483,588 | 98,675 | ||||||||||||
333,474 | 256,117 | 1,489,633 | 290,293 |
5. | Accrued Expenses |
2022 | 2021 | 2022 | 2021 | |||||||||||||
Registration penalties | $ | 2,190 | $ | 1,950 | $ | 1,593 | $ | 1,950 | ||||||||
License fees | 893 | 893 | 893 | 893 | ||||||||||||
Board of director's fees | 996 | 507 | ||||||||||||||
Board of director’s fees | 663 | 507 | ||||||||||||||
Other | 1,821 | 1,044 | 951 | 1,044 | ||||||||||||
$ | 5,900 | $ | 4,394 | $ | 4,100 | $ | 4,394 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |||||||||||||||||||||||
United States | International | Total | United States | International | Total | |||||||||||||||||||
Accessories and parts | $ | 2,636 | $ | 34 | $ | 2,670 | $ | 1,938 | $ | 70 | $ | 2,008 | ||||||||||||
Product | 863 | 0 | 863 | 470 | 44 | 514 | ||||||||||||||||||
License fees and other | 0 | 5 | 5 | 91 | 20 | 111 | ||||||||||||||||||
Topic 606 Revenue | $ | 3,499 | $ | 39 | $ | 3,538 | $ | 2,499 | $ | 134 | $ | 2,633 | ||||||||||||
Rental income | 344 | 0 | 344 | 276 | 0 | 276 | ||||||||||||||||||
Topic 842 Revenue | $ | 344 | $ | 0 | $ | 344 | $ | 276 | $ | 0 | $ | 276 | ||||||||||||
Total Revenue | $ | 3,843 | $ | 39 | $ | 3,882 | $ | 2,775 | $ | 134 | $ | 2,909 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||
United States | International | Total | United States | International | Total | |||||||||||||||||||
Accessories and parts | $ | 4,767 | $ | 30 | $ | 4,797 | $ | 3,373 | $ | 206 | $ | 3,579 | ||||||||||||
Product | 1,554 | 16 | 1,570 | 511 | 256 | 767 | ||||||||||||||||||
License fees and other | 8 | 14 | 22 | 124 | 25 | 149 | ||||||||||||||||||
Topic 606 Revenue | $ | 6,329 | $ | 60 | $ | 6,389 | $ | 4,008 | $ | 487 | $ | 4,495 | ||||||||||||
Rental income | 688 | 0 | 688 | 530 | 0 | 530 | ||||||||||||||||||
Topic 842 Revenue | $ | 688 | $ | 0 | $ | 688 | $ | 530 | $ | 0 | $ | 530 | ||||||||||||
Total Revenue | $ | 7,017 | $ | 60 | $ | 7,077 | $ | 4,538 | $ | 487 | $ | 5,025 |
June 30, 2022 | December 31, 2021 | |||||||
Service agreements | $ | 359 | $ | 137 | ||||
Deposit on future equipment purchases | 0 | 204 | ||||||
Total contract liabilities | 359 | 341 | ||||||
Less: current portion | (64 | ) | (48 | ) | ||||
Non-current contract liabilities | $ | 295 | $ | 293 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | |||||||||||||
Beginning balance | $ | 361 | $ | 187 | $ | 341 | $ | 69 | ||||||||
New service agreement additions | 8 | 35 | 36 | 36 | ||||||||||||
Deposit on future equipment purchases | 0 | 0 | 0 | 125 | ||||||||||||
Revenue recognized | (10 | ) | (8 | ) | (18 | ) | (16 | ) | ||||||||
Total contract liabilities | 359 | 214 | 359 | 214 | ||||||||||||
Less current portion | (64 | ) | (33 | ) | (64 | ) | (33 | ) | ||||||||
Non-current contract liabilities | $ | 295 | $ | 181 | $ | 295 | $ | 181 |
Concentration of Credit Risk and Limited Suppliers |
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
Accounts Receivable: | ||||||||||||||||
Customer A | 14% | 16% | 12 | % | 24 | % | ||||||||||
Customer B | 13% | n/a | 10 | % | 16 | % | ||||||||||
Customer C | n/a | 24% |
Three Months Ended | Six Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | September 30, 2022 | September 30, 2021 | September 30, 2022 | September 30, 2021 | |||||||||||||||||||||||||
Purchases: | ||||||||||||||||||||||||||||||||
Vendor A | 17% | 44% | 18% | 43% | 18 | % | 52 | % | 18 | % | 46 | % | ||||||||||||||||||||
Vendor B | n/a | 38% | n/a | 21% | n/a | n/a | n/a | 15 | % |
Notes |
As of 06/30/2022 (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 | (5,666 | ) | 0 | $ | 12,334 | ||||||||||||||
Convertible promissory notes payable, in default: | |||||||||||||||||||||||||
Total convertible promisory notes payable, in default | In default | 15.40 | % | $ | 0.0538 | 6,445 | (140 | ) | 218 | 6,523 | |||||||||||||||
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 | In default | n/a | n/a | 812 | (414 | ) | 0 | 398 | |||||||||||||||||
Short-term bridge loan | October 31, 2022 | 5.00 | % | n/a | 1,559 | (75 | ) | 0 | 1,484 | ||||||||||||||||
Total debt outstanding, including amounts in default | 29,445 | (6,295 | ) | 218 | 23,368 | ||||||||||||||||||||
Less: current maturities, including notes in default | (28,684 | ) | 6,295 | (218 | ) | (22,607 | ) | ||||||||||||||||||
Total long-term debt as of June 30, 2022 | $ | 761 | $ | 0 | $ | 0 | $ | 761 |
As of 09/30/2022 (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 | 20.5 | % | n/a | $ | 18,000 | $ | (5,227 | ) | $ | - | $ | 12,773 | ||||||||||||
2021 Convertible promissory notes payable | In default | 17.0 | % | $ | 0.0538 | 4,000 | - | - | 4,000 | ||||||||||||||||
Convertible promissory notes payable, related parties | In default | 14.0 | % | $ | 0.10 | 1,373 | - | - | 1,373 | ||||||||||||||||
Convertible notes payable | August 5, 2023 | 15.0 | % | $ | 0.04 | 10,849 | (2,966 | ) | 1,291 | 9,174 | |||||||||||||||
Convertible notes payable, related parties | August 5, 2023 | 15.0 | % | $ | 0.04 | 5,305 | (1,451 | ) | 631 | 4,485 | |||||||||||||||
Advances on future cash receipts | In default | n/a | n/a | 296 | (102 | ) | - | 194 | |||||||||||||||||
Total short-term debt as of September 30, 2022, including notes in default | $ | 39,823 | $ | (9,746 | ) | $ | 1,922 | $ | 31,999 |
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 | 20.25 | % | n/a | $ | 15,000 | $ | (3,414 | ) | $ | - | $ | 11,586 | ||||||||||||
2021 Convertible promissory notes payable | In default | 15.40 | % | $ | 0.1071 | 6,445 | (1,099 | ) | 6,255 | 11,601 | |||||||||||||||
Convertible promissory notes payable, related parties | In default | 14.0 | % | $ | 0.10 | 1,596 | - | - | 1,596 | ||||||||||||||||
SBA loan #2 | February 20, 2026 | 1.00 | % | n/a | 1,033 | - | - | 1,033 | |||||||||||||||||
Advances on future cash receipts | March 11, 2022 | n/a | n/a | 1,500 | (1,054 | ) | - | 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 | $ | - | $ | - | $ | 875 |
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 |
At 06/30/2022 | At 12/31/2021 | At 09/30/2022 | At 12/31/2021 | |||||||||||||
Conversion Price(1) | $ | 0.05 | $ | 0.11 | $ | 0.04 | $ | 0.11 | ||||||||
Interest Rate (annual) (2) | 1.28 | % | 0.18 | % | 3.93 | % | 0.18 | % | ||||||||
Volatility (annual) (3) | 125.00 | % | 289.65 | % | 393.20 | % | 289.65 | % | ||||||||
Time to Maturity (Years) | 0.05 | 0.50 | 0.85 | 0.50 |
Common Stock Purchase Warrants |
Weighted | Weighted Average | |||||||||||||||||||||||
Average | Remaining | |||||||||||||||||||||||
Exercise Price | Contractual Life | |||||||||||||||||||||||
Warrants | Weighted Average Exercise Price per share | Weighted Average Remaining Contractual Life (years) | Warrants | per share | (years) | |||||||||||||||||||
Outstanding at December 31, 2021 | 204,882,664 | $ | 0.20 | 2.54 | 204,883 | $ | 0.20 | 2.54 | ||||||||||||||||
Exercised | (15,909,091 | ) | 0.01 | (27,946 | ) | 0.01 | ||||||||||||||||||
Issued | 21,874,302 | 0.18 | 829,554 | 0.05 | ||||||||||||||||||||
Outstanding at June 30, 2022 | 210,847,875 | $ | 0.21 | 2.44 | ||||||||||||||||||||
Outstanding at September 30, 2022 | 1,006,491 | $ | 0.08 | 5.00 |
Fair Value Measurements |
Fair value measured at September 30, 2022 | ||||||||||||||||||||||||||||||||
Quoted prices in | Significant other | Significant | ||||||||||||||||||||||||||||||
Fair value measured at June 30, 2022 | Fair value at | active markets | observable inputs | unobservable inputs | ||||||||||||||||||||||||||||
Fair value at June 30, 2022 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | September 30, 2022 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Warrant liability | $ | 5,295 | $ | 0 | $ | 0 | $ | 5,295 | $ | 1,196 | $ | - | $ | - | $ | 1,196 | ||||||||||||||||
Embedded conversion option | 218 | 0 | 0 | 218 | 1,922 | - | - | 1,922 | ||||||||||||||||||||||||
Total fair value | 5,513 | 0 | 0 | 5,513 | $ | 3,118 | $ | - | $ | - | $ | 3,118 |
Fair value measured at December 31, 2021 | ||||||||||||||||||||||||||||||||
Quoted prices in | Significant other | Significant | ||||||||||||||||||||||||||||||
Fair value measured at December 31, 2021 | Fair value at | active markets | observable inputs | unobservable inputs | ||||||||||||||||||||||||||||
Fair value at December 31, 2021 | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | December 31, 2021 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Warrant liability | $ | 9,614 | 0 | 0 | 9,614 | $ | 9,614 | $ | - | $ | - | $ | 9,614 | |||||||||||||||||||
Embedded conversion option | 6,255 | 0 | 0 | 6,255 | 6,255 | - | - | 6,255 | ||||||||||||||||||||||||
Total fair value | 15,869 | 0 | 0 | 15,869 | $ | 15,869 | $ | - | $ | - | $ | 15,869 |
Warrant | Conversion | |||||||||||||||||||||||
Warrant Liability | Conversion Feature | Total | Liability | Feature | Total | |||||||||||||||||||
Balance at December 31, 2021 | $ | 9,614 | $ | 6,255 | $ | 15,869 | $ | 9,614 | $ | 6,255 | $ | 15,869 | ||||||||||||
Issuance of Convertible Notes | - | 2,309 | 2,309 | |||||||||||||||||||||
Cashless exercise | (2,167 | ) | 0 | (2,167 | ) | (2,167 | ) | - | (2,167 | ) | ||||||||||||||
Settlement of Convertible Notes | (963 | ) | (218 | ) | (1,181 | ) | ||||||||||||||||||
Warrants issued | 3,168 | 0 | 3,168 | 4,885 | - | 4,885 | ||||||||||||||||||
Change in fair value | (5,320 | ) | (6,037 | ) | (11,357 | ) | (10,173 | ) | (6,424 | ) | (16,597 | ) | ||||||||||||
Balance at June 30, 2022 | $ | 5,295 | $ | 218 | $ | 5,513 | ||||||||||||||||||
Balance at September 30, 2022 | $ | 1,196 | $ | 1,922 | $ | 3,118 |
Warrants | Fair Value | Fair Value | ||||||||||||||||||||||
Warrants Outstanding | Fair Value per Share | Fair Value | Outstanding | per Share | (in thousands) | |||||||||||||||||||
Balance at December 31, 2021 | 62,617,188 | $ | 0.15 | $ | 9,614,134 | 62,617,188 | $ | 0.15 | $ | 9,614 | ||||||||||||||
Warrants classified as liabilities | (15,000,000 | ) | 0.14 | (2,167,022 | ) | |||||||||||||||||||
Warrants exercised | (27,037,038 | ) | 0.12 | (3,130 | ) | |||||||||||||||||||
Warrants issued | 21,874,302 | 0.14 | 3,168,581 | 829,553,984 | 0.01 | 4,885 | ||||||||||||||||||
Gain on remeasurement of warrant liability | 0 | (5,320,470 | ) | - | (10,173 | ) | ||||||||||||||||||
Balance at June 30, 2022 | 69,491,490 | $ | 0.08 | $ | 5,295,223 | |||||||||||||||||||
Balance at September 30, 2022 | 865,134,134 | $ | 0.00 | $ | 1,196 |
September 30, | December 31, | New Issuance | ||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | New Issuance at Issue Date | 2022 | 2021 | at Issue Date | |||||||||||||||||||
Weighted average remaining life in years | 5.21 | 4.67 | 6.89 | 4.89 | 4.67 | 5.00 | ||||||||||||||||||
Weighted average volatility | 325 | % | 116 | % | 276 | % | 87 | % | 116 | % | 85 | % | ||||||||||||
Weighted average risk free interest rate | 3.0 | % | 1.2 | % | 3.0 | % | 4.0 | % | 1.2 | % | 2.9 | % | ||||||||||||
Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % |
Commitments and Contingencies |
Subsequent Events |
For the Three Months Ended | For the Six Months Ended | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, | Change | June 30, | Change | September 30, | Change | September 30, | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | $ | % | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | 2022 | 2021 | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | $ | 3,882 | $ | 2,909 | $ | 973 | 33 | % | $ | 7,077 | $ | 5,025 | $ | 2,052 | 41 | % | $ | 4,166 | $ | 3,725 | $ | 441 | 12 | % | $ | 11,242 | $ | 8,750 | $ | 2,492 | 28 | % | ||||||||||||||||||||||||||||||||
Cost of Revenues | 1,096 | 1,048 | 48 | 5 | % | 1,986 | 2,103 | (117 | ) | -6 | % | 606 | 1,555 | (949 | ) | -61 | % | 2,590 | 3,658 | (1,068 | ) | -29 | % | |||||||||||||||||||||||||||||||||||||||||
Gross Margin | 2,786 | 1,861 | 925 | 50 | % | 5,091 | 2,922 | 2,169 | 74 | % | 3,560 | 2,170 | 1,390 | 64 | % | 8,652 | 5,092 | 3,560 | 70 | % | ||||||||||||||||||||||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 2,937 | 2,923 | 14 | 0 | % | 5,078 | 6,045 | (967 | ) | -16 | % | 3,404 | 2,864 | 540 | 19 | % | 8,482 | 8,909 | (427 | ) | -5 | % | ||||||||||||||||||||||||||||||||||||||||||
Selling and marketing | 1,672 | �� | 2,520 | (848 | ) | -34 | % | 3,387 | 4,300 | (913 | ) | -21 | % | 1,650 | 2,150 | (500 | ) | -23 | % | 5,037 | 6,450 | (1,413 | ) | -22 | % | |||||||||||||||||||||||||||||||||||||||
Research and development | 171 | 272 | (101 | ) | -37 | % | 337 | 626 | (289 | ) | -46 | % | 157 | 297 | (140 | ) | -47 | % | 494 | 923 | (429 | ) | -46 | % | ||||||||||||||||||||||||||||||||||||||||
Gain on disposal of assets | (136 | ) | - | (136 | ) | N/A | (690 | ) | - | (690 | ) | N/A | - | - | - | N/A | (690 | ) | - | (690 | ) | N/A | ||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 210 | 192 | 18 | 9 | % | 386 | 391 | (5 | ) | -1 | % | 189 | 194 | (5 | ) | -3 | % | 575 | 585 | (10 | ) | -2 | % | |||||||||||||||||||||||||||||||||||||||||
Operating Loss | (2,068 | ) | (4,046 | ) | 1,978 | -49 | % | (3,407 | ) | (8,440 | ) | 5,033 | -60 | % | (1,840 | ) | (3,335 | ) | 1,495 | -45 | % | (5,246 | ) | (11,775 | ) | 6,529 | -55 | % | ||||||||||||||||||||||||||||||||||||
Other Income (Expense), net | 4,770 | (4,563 | ) | 9,333 | -205 | % | 1,685 | (5,090 | ) | 6,775 | -133 | % | 1,427 | (911 | ) | 2,338 | -257 | % | 3,111 | (6,001 | ) | 9,112 | -152 | % | ||||||||||||||||||||||||||||||||||||||||
Income tax expense | - | (6 | ) | 6 | - | 22 | (22 | ) | - | (6 | ) | 6 | - | (28 | ) | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | $ | 2,702 | $ | (8,615 | ) | 11,317 | -131 | % | $ | (1,722 | ) | $ | (13,552 | ) | 11,830 | -87 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net Loss | $ | (413 | ) | $ | (4,252 | ) | 3,839 | -90 | % | $ | (2,135 | ) | $ | (17,804 | ) | 15,669 | -88 | % |
Item 4. | CONTROLS AND PROCEDURES |
Item 1A. | RISK FACTORS. |
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 | |
Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Form 10-SB filed with the SEC on December 18, 2007). | ||
Certificate of Amendment to the Articles of Incorporation (Incorporated by reference to Appendix A to the Definitive Schedule 14C filed with the SEC on October 16, 2009). | ||
Certificate of Amendment to the Articles of Incorporation (Incorporated by reference to Appendix A to the Definitive Schedule 14C filed with the SEC on April 16, 2012). | ||
Bylaws (Incorporated by reference to Exhibit 3.02 to the Form 10-SB filed with the SEC on December 18, 2007). | ||
Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock of the Company dated March 14, 2014 (Incorporated by reference to Exhibit 3.1 to the Form 8-K filed with the SEC on March 18, 2014). | ||
Certificate of Designation of Preferences, Rights and Limitations of Series B Convertible Preferred Stock of the Company dated January 12, 2016 (Incorporated by reference to Exhibit 3.1 to the Form 8-K filed with the SEC on January 19, 2016). | ||
Certificate of Designation of Preferences, Rights and Limitations of Series C Convertible Preferred Stock of the Company dated January 31, 2020 (Incorporated by reference to Exhibit 3.1 to the Form 8-K filed with the SEC on February 6, 2020). | ||
Certificate of Designation of Series D Convertible Preferred Stock (Incorporated by reference to Exhibit 3.1 to the Form 8-K filed with the SEC on May 20, 2020). | ||
Certificate of Amendment of the Articles of Incorporation (Incorporated by reference to Exhibit 3.1 to the Form 8-K filed with the SEC on January 5, 2021). | ||
Form of Future Advance Convertible Promissory Note issued to certain purchasers, dated August 5, |
Form of Common Stock Purchase Warrant issued to certain purchasers, dated August 5, 2022 (Incorporated by reference to Exhibit 4.2 to the Form 8-K filed with the SEC on August 8, 2022). | ||
Form of Securities Purchase Agreement, dated August 5, 2022, by and among the Company and the purchasers identified on the signature pages | ||
Form of Subordination Agreement, dated August 5, 2022, by and among the Company, NH Expansion Credit Fund Holdings LP and certain | ||
Form of Security Agreement, dated August 5, 2022, by and among the Company and certain lenders (Incorporated by reference to Exhibit 10.3 to the Form 8-K filed with the SEC on August 8, 2022). | ||
Form of | ||
Settlement Agreement, dated August 5, 2022, by and | ||
Offer Letter, dated | ||
Rule 13a-14(a)/15d-14(a) Certification of the | ||
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. | |
104 | Cover Page with Interactive Data File |
SANUWAVE HEALTH, INC. | |||
Dated: | By: | /s/ Kevin A. Richardson, II |
Chief Executive Officer (Duly Authorized Officer and Principal Executive Officer) |
Dated: November 14, 2022 | By: | /s/ Toni Rinow |
Chief Financial Officer (Principal Financial and |