XML 16 R6.htm IDEA: XBRL DOCUMENT v3.23.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
CASH FLOW FROM OPERATING ACTIVITIES:    
Net loss $ (1,711,200) $ (2,718,360)
Adjustments to reconcile net loss to net cash used for operating activities:    
Depreciation 26,637 21,781
Amortization of intangible assets 162,166 106,403
Amortization of capitalized contract costs 80,717 57,945
Operating leases right-of-use assets 112,745 47,308
Reserve for Investment – debt security 150,000
Share and warrant-based compensation for employees and consultants 120,767 153,370
Stock based directors’ fees 28,004 40,026
Change in fair value of convertible note (97,423) (0)
Deferred income tax benefit (13,000) 0
Bad debts 50,000 25,111
Change in assets and liabilities:    
Accounts receivable (1,657,170) (390,660)
Due from factor (24,750) (27,440)
Capitalized contract costs (75,096) (110,158)
Inventory 50,271 52,059
Resalable software license rights 0 4,984
Prepaid expenses and other 14,799 (94,947)
Accounts payable 726,657 450,667
Accrued liabilities (109,208) (33,776)
Income taxes payable 156,000 0
Deferred revenue 174,437 27,818
Operating lease liabilities (110,545) (49,577)
Net cash used for operating activities (2,095,192) (2,287,446)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of Swivel Secure, net of cash acquired of $729,905 0 (543,578)
Receipt of cash from note receivable 0 7,000
Capital expenditures 0 (22,888)
Net cash used for investing activities 0 (559,466)
CASH FLOW FROM FINANCING ACTIVITIES:    
Receipt of cash from Employee stock purchase plan 13,934 39,125
Repayment of government loan (56,241) 0
Net cash used for financing activities (42,307) 39,125
Effect of exchange rate changes 67,490 (53,217)
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,070,009) (2,861,004)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,635,522 7,754,046
CASH AND CASH EQUIVALENTS, END OF PERIOD 565,513 4,893,042
Cash paid for:    
Interest 113,724 1,540
Noncash investing and financing activities    
Accounts receivable acquired from Swivel Secure 0 702,886
Equipment acquired from Swivel Secure 0 65,640
Other assets acquired from Swivel Secure 0 20,708
Intangible assets acquired from Swivel Secure 0 762,860
Goodwill resulting from the acquisition from Swivel Secure 0 1,067,372
Accounts payable and accrued expenses acquired from Swivel Secure 0 431,884
Common stock issued for acquisition of Swivel Secure 0 600,004
Swivel Secure Europe [Member]    
Noncash investing and financing activities    
Government loan acquired from Swivel Secure $ 0 $ 544,000