Annual report [Section 13 and 15(d), not S-K Item 405]

Consolidated Statements of Cash Flows

v3.25.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (16,635,000) $ (30,330,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 2,612,000 5,376,000
Stock-based compensation 1,289,000 2,735,000
Change in fair value of warrant liability (1,115,000) (2,898,000)
Change in fair value of contingent consideration (252,000) (545,000)
Change in fair value of debt at fair value 163,000 0
Gain on sale of intangible assets (183,000) 0
Loss on extinguishment of liability – contingent consideration 336,000 0
Loss on exchange of placement agent warrants 0 681,000
Impairment of intangible assets and goodwill 0 7,052,000
Fair value of noncash legal settlement and other noncash charges 959,000 0
Loss on intangible asset disposal 0 2,284,000
Amortization of convertible notes discount 0 40,000
Changes in assets and liabilities:    
Accounts receivable 4,521,000 (2,113,000)
Prepaid expense and other current assets 821,000 146,000
Accounts payable and accrued expense (3,960,000) 3,412,000
Accrued contingent consideration (20,000) (1,064,000)
Contract liabilities (289,000) 228,000
Deferred taxes 161,000 (313,000)
Accrued interest on notes payable 130,000 (180,000)
Net cash used in operating activities (11,462,000) (15,489,000)
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property and equipment (23,000) (8,000)
Capitalization of software development costs (452,000) (650,000)
Acquisition of other intangible and other assets 0 (17,000)
Net cash used in investing activities (283,000) (825,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of preferred stock, net of issuance costs 2,393,000 19,295,000
Proceeds from issuance of common stock, net of issuance costs 1,000,000 1,885,000
Proceeds from notes payable, net of debt issuance costs 3,257,000 0
Payments on notes payable (396,000) 0
Payments on convertible notes 0 (539,000)
Proceeds from accounts receivable facility 1,174,000 800,000
Payments on accounts receivable facility (1,950,000) 0
Contingent consideration payments – Melon Acquisition (32,000) 0
Net cash provided by financing activities 5,446,000 21,441,000
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (6,299,000) 5,127,000
CASH AND CASH EQUIVALENTS – beginning of year 7,609,000 2,482,000
CASH AND CASH EQUIVALENTS – end of year 1,310,000 7,609,000
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of Super Biz Note in connection with extinguishment of accrued contingent consideration liability 1,765,000 0
Series AAA Junior Preferred Stock [Member]    
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock 294,000 0
Settled Litigation [Member]    
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock 1,440,000 760,000
Minehut [Member]    
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from sale of Minehut Assets 192,000  
Melon Acquisition [Member]    
CASH FLOWS FROM INVESTING ACTIVITIES    
Cash paid in connection with Acquisition 0 (150,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Contingent consideration payments – Melon Acquisition [1] (122,000) 0
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock 90,000 722,000
Superbiz Acquisition [Member]    
CASH FLOWS FROM FINANCING ACTIVITIES    
Contingent consideration payments – Melon Acquisition [2] (38,000) (3,423,000)
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock 38,000 548,000
Bannerfy Acquisition [Member]    
SUPPLEMENTAL NONCASH INVESTING ACTIVITIES    
Issuance of common stock $ 0 $ 70,000
[1] In May 2024, the Company paid accrued Melon Contingent Consideration related to the Melon First Earn Out Period, comprised of $32,000 of cash payments and payment of 72,118 shares of our common stock valued at $90,000 on the date of issuance.
[2] In May 2024, the Company paid accrued contingent consideration related to the Super Biz Second Earn Out Period, comprised of 30,330 shares of our common stock valued at $38,000. In April 2023, the Company paid accrued contingent consideration related to the Initial Earn Out Period, comprised of $2.9 million of cash payments and payment of 49,399 shares of our common stock valued at $548,000.