Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,330,346) $ (3,373,331)
Adjustments to reconcile net loss to net cash used in operating activities:    
Lease right-of-use asset 160,856 126,259
Depreciation 85,875 10,595
Amortization of debt discount 674,202
Loss on extinguishment of debt 62,934
Gain on sale of asset (40,838)
Impairment of fixed assets 1,478
Non-cash interest charges (30,990)
Non-cash loan commitment fee 9,250
Deemed dividend 358,932
Stock-based compensation 78,590 1,371,847
Changes in operating assets and liabilities:    
Prepaid expenses (14,499) 31,968
Inventory (46,173) (111,435)
Accounts receivable (429)
Other current assets 4,955 (108,825)
Accounts payable and accrued expenses (174,174) (45,577)
Subscription liability 90,000
Lease liability (164,310)
Net cash used in operating activities (1,612,928) (1,760,258)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of equipment (115,956) (672,032)
Deposits on machinery and equipment 177,500
Net cash used in investing activities (115,956) (494,532)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from sale of common stock 684,167 2,262,748
Repayment of convertible notes payable and convertible notes payable related party (348,000) (89,704)
Proceeds from notes payable and notes payable related party 166,727 214,300
Proceeds from convertible notes payable and convertible notes payable related party 1,720,000 70,000
Repayment of notes payable and notes payable related party (47,250) (59,926)
Net cash provided by financing activities 2,175,644 2,397,418
NET (DECREASE) INCREASE IN CASH 446,760 142,628
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 129,152 121,831
CASH AND CASH EQUIVALENTS AT END OF PERIOD 575,912 264,459
Supplemental cash flow information:    
Cash paid for interest expense 34,367 22,874
Supplemental disclosure of non cash investing and financing activities:    
Return of loan commitment shares (130,000)
Conversion of notes payable into common stock 150,000 531,101
Recording of debt discount on convertible notes 685,000
Conversion of convertible notes payable into common stock 961,373
Common shares issued to acquire interest in joint venture 502,500
Exchange of notes payable and related interest for common stock $ 165,852