Annual report pursuant to Section 13 and 15(d)

CONDENSED STATEMENTS OF CASH FLOWS

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CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (30,679,000) $ (20,627,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 862,000 1,106,000
Stock-based compensation 6,217,000 3,942,000
Amortization of discount on convertible notes (Note 6) 2,684,000 0
Beneficial conversion feature 7,067,000 3,863,000
In-kind contribution of services 0 667,000
Changes in assets and liabilities:    
Accounts receivable 199,000 (374,000)
Prepaid expenses and other current assets (329,000) (340,000)
Accounts payable and accrued expenses 40,000 432,000
Deferred revenue 106,000 45,000
Accrued interest on convertible notes 187,000 606,000
Net cash used in operating activities (13,646,000) (10,680,000)
CASH FLOWS FROM INVESTING ACTIVITIES    
Framerate acquisition (1,506,000) 0
Purchase of property and equipment (73,000) (255,000)
Capitalization of software development costs (1,079,000) (519,000)
Acquisition of other intangible assets (506,000) (92,000)
Net cash used in investing activities (3,164,000) (866,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of common stock, net of issuance costs 22,458,000 0
Proceeds from convertible note payable, net of issuance costs 0 12,611,000
Proceeds from warrant exercise 20,000 0
Net cash provided by financing activities 22,478,000 12,611,000
INCREASE IN CASH AND CASH EQUIVALENTS 5,668,000 1,065,000
CASH AND CASH EQUIVALIENTS - beginning of year 2,774,000 1,709,000
CASH AND CASH EQUIVALIENTS - end of year 8,442,000 2,774,000
SUPPLEMENTAL NONCASH FINANCING ACTIVITIES    
Automatic conversion of convertible debt to common stock (Note 6) 13,793,000 3,000,000
Issuance of common stock for Framerate Acquisition (Note 5) 1,000,000 0
Common stock purchase warrants - discount on convertible debt 0 5,207,000
Common stock issued for prepaid services $ 18,000 $ 72,000