(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ¨ |
x | Smaller reporting company | ||
Emerging growth company |
26 |
i |
ii |
· | Edward Aizman, Director, Chief Executive Officer, Secretary and Treasurer |
· | Michael E. Lakshin, Chairman of the Board and President |
· | Conrad Huss, Co-Chairman of the Board |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
· | be unable to effectively accommodate evolving service needs, including as the result of rapid growth or higher volume; |
· | choose to terminate or not renew their agreements with us, or only be willing to renew on less advantageous terms; |
· | change the scope of their services provided to us, cease doing business with us, or cease doing business altogether; or |
· | experience delays, limitations, or closures of their own businesses, networks, or systems, resulting in their inability to process payments or disburse funds for certain periods of time. |
8 |
9 |
10 |
· | market conditions in the broader stock market in general, or in our industry in particular; |
· | actual or anticipated fluctuations in our financial and operating results; |
· | introduction of new products and services by us or our competitors; |
· | sales, or anticipated sales, of large blocks of our stock; |
· | issuance of new or changed securities analysts’ reports or recommendations; |
· | additions or departures of key personnel; |
· | regulatory or political developments; |
· | changes in accounting principles or methodologies; |
· | acquisitions by us or by our competitors; |
· | litigation and governmental investigations; and |
· | political and geopolitical events and general economic conditions and trends, including the possible effects of the widespread domestic and global impact of the COVID-19 pandemic. |
11 |
12 |
Creditor | Date | Shares Issued | Principal Retired | Accrued Interest | Fees | Total | ||||||||||||||||||
Livingston Asset Management LLC | 6-May-22 | 315,275,000 | 9,500 | 2,969 | 3,295 | 15,764 | ||||||||||||||||||
Livingston Asset Management LLC | 6-May-22 | 392,525,000 | 12,500 | 3,831 | 3,295 | 19,626 | ||||||||||||||||||
Livingston Asset Management LLC | 19-May-22 | 50,910,200 | 1,100 | 396 | 1,050 | 2,546 | ||||||||||||||||||
Livingston Asset Management LLC | 19-May-22 | 185,850,000 | 4,500 | 1,498 | 3,295 | 9,293 | ||||||||||||||||||
Livingston Asset Management LLC | 6-Jun-22 | 376,768,000 | 18,750 | 4,329 | 3,295 | 26,374 | ||||||||||||||||||
Livingston Asset Management LLC | 6-Jun-22 | 316,566,800 | 10,000 | 3,773 | 2,055 | 15,828 | ||||||||||||||||||
Livingston Asset Management LLC | 10-Jun-22 | 163,772,200 | - | 6,134 | 2,055 | 8,189 | ||||||||||||||||||
Livingston Asset Management LLC | 14-Jun-22 | 140,214,000 | 6,250 | 270 | 3,295 | 9,815 | ||||||||||||||||||
Oscalata partners LLC | 15-Jun-22 | 300,727,400 | 11,000 | 741 | 3,295 | 15,036 | ||||||||||||||||||
Livingston Asset Management LLC | 17-Jun-22 | 467,932,429 | 25,000 | 4,460 | 3,295 | 32,755 | ||||||||||||||||||
Livingston Asset Management LLC | 17-Jun-22 | 463,470,571 | 25,000 | 4,148 | 3,295 | 32,443 | ||||||||||||||||||
Livingston Asset Management LLC | 22-Jun-22 | 458,010,714 | 25,000 | 3,766 | 3,295 | 32,061 | ||||||||||||||||||
Livingston Asset Management LLC | 23-Jun-22 | 453,588,000 | 25,000 | 3,456 | 3,295 | 31,751 | ||||||||||||||||||
Livingston Asset Management LLC | 23-Jun-22 | 443,529,286 | 25,000 | 2,752 | 3,295 | 31,047 | ||||||||||||||||||
Livingston Asset Management LLC | 27-Jun-22 | 434,833,714 | 25,000 | 2,023 | 3,415 | 30,438 | ||||||||||||||||||
Livingston Asset Management LLC | 27-Jun-22 | 413,336,143 | 25,000 | 519 | 3,415 | 28,934 | ||||||||||||||||||
Livingston Asset Management LLC | 28-Jun-22 | 434,891,429 | 25,000 | 2,027 | 3,415 | 30,442 | ||||||||||||||||||
Livingston Asset Management LLC | 29-Jun-22 | 432,347,429 | 25,000 | 1,849 | 3,415 | 30,264 | ||||||||||||||||||
Frondeur Partners, LLC | 30-Jun-22 | 429,412,000 | 25,000 | 1,644 | 3,415 | 30,059 | ||||||||||||||||||
Frondeur Partners, LLC | 6-July-22 | 423,639,000 | 25,000 | 1,452 | 3,415 | 29,867 | ||||||||||||||||||
Frondeur Partners, LLC | 6-July-22 | 426,672,143 | 25,000 | 1,644 | 3,415 | 30,059 | ||||||||||||||||||
Trillium Partners, LP | 13-July-22 | 143,324,850 | 22,000 | 3,250 | 3,415 | 28,665 | ||||||||||||||||||
Trillium Partners, LP | 13-July-22 | 92,680,867 | 22,000 | 2,389 | 3,415 | 27,804 | ||||||||||||||||||
Frondeur Partners, LLC | 18-July-22 | 421,975,571 | 25,000 | 1,123 | 3,415 | 29,538 | ||||||||||||||||||
Frondeur Partners, LLC | 18-July-22 | 419,235,857 | 25,000 | 932 | 3,415 | 29,347 | ||||||||||||||||||
Frondeur Partners, LLC | 18-July-22 | 416,202,571 | 25,000 | 932 | 3,415 | 29,347 | ||||||||||||||||||
Oasis Capital, LLC | 20-July-22 | 600,000,000 | - | 27,000 | - | 27,000 | ||||||||||||||||||
Trillium Partners, LP | 07-Sept-22 | 766,606,000 | - | 41,133 | 1,030 | 42,163 | ||||||||||||||||||
Trillium Partners, LP | 14-Sept-22 | 947,060,606 | - | 152,850 | 3,415 | 156,265 | ||||||||||||||||||
Trillium Partners, LP | 27-Sept-22 | 1,549,444,424 | - | 252,243 | 3,415 | 255,658 | ||||||||||||||||||
Trillium Partners, LP | 04-Oct-22 | 149,833,300 | 11,000 | 568 | 3,415 | 14,983 | ||||||||||||||||||
Trillium Partners, LP | 04-Oct-22 | 149,436,100 | 11,000 | 529 | 3,415 | 14,944 | ||||||||||||||||||
Frondeur Partners, LLC | 01-Nov-22 | 141,310,810 | 25,000 | 1,260 | 3,415 | 29,675 | ||||||||||||||||||
Frondeur Partners, LLC | 01-Dec-22 | 593,368,400 | 25,000 | 1,253 | 3,415 | 29,668 | ||||||||||||||||||
Trillium Partners, LP | 12-Dec-22 | 117,231,300 | 7,800 | 508 | 3,415 | 11,723 | ||||||||||||||||||
Trillium Partners, LP | 07-Oct-22 | 1,211,356,045 | - | 263,083 | 3,415 | 266,498 | ||||||||||||||||||
Trillium Partners, LP | 24-Oct-22 | 1,217,151,500 | - | 264,358 | 3,415 | 267,773 | ||||||||||||||||||
Trillium Partners, LP | 18-Nov-22 | 1,634,232,303 | - | 265,830 | 3,415 | 269,245 | ||||||||||||||||||
Total | 18,094,721,962 | $ | 572,400 | $ | 1,332,922 | $ | 117,565 | $ | 2,022,887 |
13 |
Description | Fair Value | Weighted Average Useful Life (Years) | ||||||
Cash | $ | 1,633 | ||||||
Prepaid expenses | 997 | |||||||
Loss on acquisition – related party | 197,370 | |||||||
$ | 200,000 |
14 |
15 |
16 |
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|
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|
F - 1 |
F - 2 |
|
|
December 31, 2022 |
|
|
December 31, 2021 |
|
||
|
|
|
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
|
|
$ |
|
|
Accounts receivable |
|
|
|
|
|
|
|
|
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
Total Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
|
|
|
$ |
|
|
Accrued expenses |
|
|
|
|
|
|
|
|
Accrued interest |
|
|
|
|
|
|
|
|
Accrued officer compensation |
|
|
|
|
|
|
|
|
Loans payable, current portion |
|
|
|
|
|
|
|
|
Loans payable, related party |
|
|
|
|
|
|
|
|
Convertible Notes, net of debt discount |
|
|
|
|
|
|
|
|
Put premium on stock settled debt |
|
|
|
|
|
|
|
|
Derivative liability |
|
|
|
|
|
|
|
|
Deferred revenue |
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans payable, net of current portion |
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ DEFICIT: |
|
|
|
|
|
|
|
|
Series A Preferred stock, |
|
|
|
|
|
|
|
|
Series B Preferred stock, |
|
|
|
|
|
|
|
|
Series C Preferred stock, |
|
|
|
|
|
|
|
|
Series D Preferred stock, |
|
|
|
|
|
|
|
|
Series E Preferred stock to be issued |
|
|
|
|
|
|
|
|
Series F Preferred stock, |
|
|
|
|
|
|
|
|
Series G Preferred stock, |
|
|
|
|
|
|
|
|
Series AA Preferred stock, |
|
|
|
|
|
|
|
|
Series Super Preferred stock, |
|
|
|
|
|
|
|
|
Common stock |
|
|
|
|
|
|
|
|
Common stock to be issued, |
|
|
|
|
|
|
|
|
Treasury stock, at cost – |
|
|
( |
) |
|
|
|
|
Additional paid in capital |
|
|
|
|
|
|
|
|
Accumulated deficit |
|
|
( |
) |
|
|
( |
) |
Total Stockholders’ Deficit |
|
|
( |
) |
|
|
( |
) |
Total Liabilities and Stockholders’ Deficit |
|
$ |
|
|
|
$ |
|
|
F - 3 |
|
|
December 31, 2022 |
|
|
December 31, 2021 |
|
||
Revenue |
|
$ |
|
|
|
$ |
|
|
Cost of revenue |
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Compensation expense |
|
|
|
|
|
|
|
|
Consulting fees |
|
|
|
|
|
|
|
|
Professional fees |
|
|
|
|
|
|
|
|
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
Interest expense |
|
|
( |
) |
|
|
( |
) |
Forgiveness of notes payable – PPP loan |
|
|
|
|
|
|
|
|
Grant income |
|
|
|
|
|
|
|
|
Gain on new methodology for accounting for debt conversion features |
|
|
|
|
|
|
|
|
Initial recognition of derivative liability |
|
|
( |
) |
|
|
|
|
Change in fair value of derivative liability |
|
|
|
|
|
|
( |
) |
Total other income (expenses) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
( |
) |
|
|
( |
) |
Provision for income taxes |
|
|
|
|
|
|
|
|
Net Loss |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
Net loss per common share – basic and diluted |
|
$ |
|
|
|
$ |
( |
) |
Weighted average common shares – basic and diluted |
|
|
|
|
|
|
|
|
F - 4 |
|
|
Series AA Preferred Stock |
|
|
Super Preferred Stock |
|
|
Series A Preferred Stock |
|
|
Series B Preferred Stock |
|
|
Series C Preferred Stock |
|
|
Series D Preferred Stock |
|
|
Series F Preferred Stock |
|
|
Series G Preferred Stock |
|
|
Series E Preferred Stock to be issued |
|
|
Common Stock |
|
|
Common Stock |
|
|
Additional Paid-In |
|
|
Treasury |
|
|
Accumulated |
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
to be Issued |
|
|
Capital |
|
|
Stock |
|
|
Deficit |
|
|
Total |
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Balan ce December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recapitalization at reverse merger - May 4, 2022 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions to shareholders |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Relative fair value of warrants issued with convertible debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued for extinguishment of convertible debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31 , 2022 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
F - 5 |
|
|
Preferred Stock |
|
|
Common Stock |
|
|
Additional |
|
|
|
|
|
Total |
|
|||||||||||||||||||||
|
|
Series AA |
|
|
Super Preferred |
|
|
|
|
|
|
|
|
Paid-in |
|
|
Accumulated |
|
|
Stockholders' |
|
|||||||||||||||
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Deficit |
|
|
Deficit |
|
|||||||||
BALANCE AT December 31, 2020 |
|
|
|
|
|
$ |
|
|
|
|
- |
|
|
$ |
- |
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
Non-cash issuance of preferred shares for services |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
Net loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
( |
) |
BALANCE AT December 31, 2021 |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
$ |
( |
) |
F - 6 |
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2022 |
|
|
2021 |
|
||
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
( |
) |
|
$ |
( |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Interest expense incurred on put premium on stock settled debt |
|
|
|
|
|
|
- |
|
Loss on acquisition – related party |
|
|
|
|
|
|
- |
|
Amortization of debt discount |
|
|
|
|
|
|
|
|
Stock-based compensation and shares issued for services |
|
|
|
|
|
|
|
|
Gain on new methodology for accounting for debt conversion features |
|
|
( |
) |
|
|
- |
|
Forgiveness of note payable - PPP Note |
|
|
- |
|
|
|
( |
) |
Grant income |
|
|
- |
|
|
|
( |
) |
Expenses incurred on extinguishment of convertible debt and accrued interest |
|
|
|
|
|
|
- |
|
Initial derivative expense |
|
|
|
|
|
|
- |
|
Change in fair value of derivative liability |
|
|
( |
) |
|
|
|
|
Changes in operating assets and liabilities (net of amounts acquired): |
|
|
|
|
|
|
|
|
A ccounts receivable |
|
|
|
|
|
|
( |
) |
Prepaid expenses and other current assets |
|
|
|
|
|
|
- |
|
Accounts payable |
|
|
|
|
|
|
|
|
Accrued expenses |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
Accrued compensation |
|
|
|
|
|
|
|
|
Deferred revenue |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash (Used In) Provided By Operating Activities |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities |
|
|
|
|
|
|
|
|
Cash acquired in Reverse Merger |
|
|
|
|
|
|
- |
|
Cash acquired in Acquisition |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Investing Activities |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
|
Proceeds from loans payable |
|
|
|
|
|
|
- |
|
Proceeds from convertible notes payable |
|
|
|
|
|
|
- |
|
Distributions to shareholders |
|
|
( |
) |
|
|
- |
|
Net Cash Provided by Financing Activities |
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Net Change in Cash and Cash Equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash And Cash Equivalents - Beginning of Year |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash And Cash Equivalents - End of Year |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosure of Cash and Non-cash Transactions: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
|
|
|
$ |
|
|
Common stock issued for extinguishment of debt and accrued interest |
|
$ |
|
|
|
$ |
- |
|
Tangible assets acquired in Merger |
|
$ |
|
|
|
$ |
- |
|
Equity acquired in Merger, net of cancellation of shares |
|
$ |
|
|
|
$ |
- |
|
Debt discount associated with issuance of warrants and derivative liabilities |
|
$ |
|
|
|
$ |
- |
|
Put premium on stock settled debt extinguishment |
|
$ |
|
|
|
$ |
- |
|
Issuance of Series G Preferred Stock |
|
$ |
|
|
|
$ |
- |
|
Accrual for shares to be issued for acquisition of Interview Mastery |
|
$ |
|
|
|
$ |
- |
|
F - 7 |
Tangible Assets Acquired: |
|
|
Allocation |
|
Cash and cash equivalents |
|
|
|
|
Accounts payable |
|
|
( |
) |
Accrued interest |
|
|
( |
) |
Accrued officer compensation |
|
|
( |
) |
Convertible Notes |
|
|
( |
) |
Put premium on stock settled debt |
|
|
( |
) |
Loans payable |
|
|
( |
) |
Net Tangible Assets Acquired |
|
$ |
( |
) |
|
|
|
|
|
Equity Acquired: |
|
|
|
|
Series A Preferred stock, |
|
|
( |
) |
Series B Preferred stock, |
|
|
( |
) |
Series C Preferred stock, |
|
|
( |
) |
Series D Preferred stock, |
|
|
( |
) |
Series E Preferred stock to be issued |
|
|
( |
) |
Series F Preferred stock, |
|
|
|
|
Common stock |
|
|
( |
) |
Treasury stock, at cost – |
|
|
|
|
Additional paid in capital |
|
|
( |
) |
|
|
|
|
|
Consideration: |
|
|
|
|
Series G Preferred Stock holding the voting rights to |
|
|
|
|
F - 8 |
|
Level 1: |
Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.
|
|
Level 2: |
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
|
Level 3: |
Pricing inputs that are generally unobservable inputs and not corroborated by market data. |
F - 9 |
F - 10 |
F - 11 |
December 31, 2022 | December 31, 2021 | |||||||
Direct placement | $ | $ | ||||||
Recruiting as a Service | ||||||||
Total revenues | $ | $ |
F - 12 |
F - 13 |
Description | Fair Value | Weighted Average Useful Life (Years) | ||||||
Cash | $ | |||||||
Prepaid expenses | ||||||||
Loss on acquisition – related party | ||||||||
$ |
December 31, | December 31, | |||||||
2022 | 2021 | |||||||
Revenue | $ | $ | ||||||
Net Loss | $ | ( | ) | $ | ( | ) | ||
Earnings (Loss) per common share, basic and diluted | $ | $ | ( | ) |
F - 14 |
Rate | December 31, 2022 | December 31, 2021 | ||||||||||
Loan 1 | % | $ | $ | |||||||||
Loan 2 | % | |||||||||||
Loan 3 | % | |||||||||||
Loan 4 | % | |||||||||||
Loan 5 | % | |||||||||||
Total | $ | $ |
F - 15 |
For the year ending | Amount | |||
December 31, 2023 | $ | |||
December 31, 2024 | ||||
December 31, 2025 | ||||
December 31, 2026 | ||||
December 31, 2027 | ||||
Thereafter | ||||
Total payments | $ |
Creditor | Date Issued | Interest Rate | Maturity Date | December 31, 2022 | December 31, 2021 | |||||||||||||||
Travel Data Solutions, Inc. (1) | % | $ | $ | |||||||||||||||||
Travel Data Solutions, Inc. (2) | % | |||||||||||||||||||
Third Party (7) | % | |||||||||||||||||||
Trillium Partners, LP (8) | % | |||||||||||||||||||
Trillium Partners, LP (8) | % | |||||||||||||||||||
Frondeur Partners LLC (9) | % | |||||||||||||||||||
Frondeur Partners LLC (9) | % | |||||||||||||||||||
Trillium Partners, LP (10) | % | |||||||||||||||||||
King Wharf Opportunities Fund (11) | % | |||||||||||||||||||
Trillium Partners, LP (8) | % | |||||||||||||||||||
Trillium Partners, LP (8) | % | |||||||||||||||||||
Frondeur Partners LLC (9) | % | |||||||||||||||||||
Frondeur Partners LLC | % | |||||||||||||||||||
Total | $ | $ | ||||||||||||||||||
Less: debt discount | ( | ) | ||||||||||||||||||
Convertible notes payable, total |
F - 16 |
F - 17 |
F - 18 |
Date Issued | Maturity Date | December 31, 2022 | Discount Percentage | Put premium on stock settled debt | ||||||||||||||||
Travel Data Solutions, Inc. | $ | - | $ | |||||||||||||||||
Travel Data Solutions, Inc. | $ | - | ||||||||||||||||||
Third party | % | |||||||||||||||||||
Trillium Partners, LP | % | |||||||||||||||||||
Trillium Partners, LP | % | |||||||||||||||||||
Frondeur Partners LLC | % | |||||||||||||||||||
Frondeur Partners LLC | % | |||||||||||||||||||
Trillium Partners, LP* | % | |||||||||||||||||||
King Wharf Opportunities Fund* | % | |||||||||||||||||||
Trillium Partners, LP | % | |||||||||||||||||||
Trillium Partners, LP | % | |||||||||||||||||||
Frondeur Partners LLC | % | |||||||||||||||||||
Frondeur Partners LLC | % | |||||||||||||||||||
Put premium on stock settled debt | $ | $ |
F - 19 |
Total | |||
Balance as of December 31, 2020 | $ | ||
Change Due to Issuances | |||
Change due to exercise / redemptions | |||
Change in fair value | |||
Balance as of December 31, 2021 | $ | ||
Change Due to Issuances | |||
Transfer to put premium | ( | ) | |
Change in fair value | ( | ) | |
Balance as of December 31, 2022 | $ |
December 31, 2022 | December 31, 2021 | |||||||
Stock price | $ | $ | ||||||
Exercise price | $ | $ | ||||||
Contractual term (in years) | ||||||||
Volatility (annual) | % | |||||||
Risk-free rate | % |
F - 20 |
Creditor | Date | Shares Issued | Principal Retired | Accrued Interest | Fees | Total | ||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Oscalata partners LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Livingston Asset Management LLC | ||||||||||||||||||||||||
Frondeur Partners, LLC | ||||||||||||||||||||||||
Frondeur Partners, LLC | ||||||||||||||||||||||||
Frondeur Partners, LLC | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Frondeur Partners, LLC |
F - 21 |
Frondeur Partners, LLC | ||||||||||||||||||||||||
Frondeur Partners, LLC | ||||||||||||||||||||||||
Oasis Capital, LLC | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Frondeur Partners, LLC | ||||||||||||||||||||||||
Frondeur Partners, LLC | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Trillium Partners, LP | ||||||||||||||||||||||||
Total | $ | $ | $ | $ |
F - 22 |
Shares available to purchase with warrants | Weighted Average Price | Weighted Average Remaining life | ||||||||||
Outstanding, December 31, 2021 | $ | $ | ||||||||||
Issued | $ | $ | ||||||||||
Exercised | $ | $ | ||||||||||
Forfeited | $ | $ | ||||||||||
Expired | $ | $ | ||||||||||
Outstanding, December 31 , 2022 | $ | $ | ||||||||||
Exercisable, December 31 , 2022 | $ | $ |
Range of Exercise Prices | Number Outstanding December 31 , 2022 | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | |||||||||
$ | $ |
F - 23 |
F - 24 |
F - 25 |
December 31, 2022 | December 31, 2021 | |||||||
Deferred tax assets / (liabilities) | ||||||||
Net operating loss carry forward | $ | $ | ||||||
Stock-based compensation | ||||||||
Accrued expenses | ||||||||
Net deferred tax assets | ||||||||
Valuation allowance | ( | ) | ( | ) | ||||
Net deferred tax assets, net of valuation allowance | $ | $ |
December 31, 2022 | December 31, 2021 | |||||||
Statutory federal income tax rate | % | % | ||||||
State tax, net of federal benefit | % | % | ||||||
Permanent differences | % | % | ||||||
Valuation allowance | ( | )% | ( | )% | ||||
Effective rate | % | % |
F - 26 |
F - 27 |
17 |
1. | We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act which is applicable to us for the year ended December 31, 2022. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. |
2. | We do not have sufficient resources in our accounting function, which restricts the Company’s ability to gather, analyze and properly review information related to financial reporting in a timely manner. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. | |
3. | We have inadequate controls to ensure that information necessary to properly record transactions is adequately communicated on a timely basis from non-financial personnel to those responsible for financial reporting. Management evaluated the impact of the lack of timely communication between non–financial personnel and financial personnel on our assessment of our reporting controls and procedures and has concluded that the control deficiency represented a material weakness. | |
4. | Certain control procedures were unable to be verified due to performance not being sufficiently documented. As an example, some procedures requiring review of certain reports could not be verified due to there being no written documentation of such review. Management evaluated the impact of its failure to maintain proper documentation of the review process on its assessment of its reporting controls and procedures and has concluded deficiencies represented a material weakness. |
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Name | Position | Age | Term of Office | Full Time/Part Time | ||||||||
Edward Aizman | Director, Chief Executive Officer, Secretary and Treasurer | 47 | April 2020 - Present | Full Time | ||||||||
Michael E. Lakshin | President and Chairman of the Board | 59 | April 2020 - Present | Full Time | ||||||||
Conrad R. Huss | Co-Chairman of the Board | 72 | May 2022 - Present | Full Time |
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● | any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; | |
● | any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences); |
● | being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; or |
● | being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated. |
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Name | Capacities in which compensation was received | Year | Cash Compensation ($) | Other Compensation ($) | Total Compensation ($) | |||||||||||||
Edward Aizman | Director, Chief Executive Officer, Secretary and Treasurer | 2022 | $ | 60,000 | $ | 120,000 | (1) | $ | 180,000 | |||||||||
2021 | $ | 42,606 | $ | 260,430 | (1) | $ | 303,036 | |||||||||||
Michael E. Lakshin | President and Chairman of the Board | 2022 | $ | 66,667 | $ | 133,333 | (2) | $ | 200,000 | |||||||||
2021 | $ | 52,052 | $ | 249,648 | (2) | $ | 301,700 | |||||||||||
Conrad R Huss | Co-Chairman of the Board | 2022 | $ | 0 | $ | 120,000 | (3) | $ | 120,000 | |||||||||
2021 | $ | 0 | $ | 412,000 | (3) | $ | 412,000 |
( 1) | Mr. Aizman is owed an aggregate amount of $284,514 and $260,430 in accrued but unpaid base salary as of December 31, 2022 and 2021, respectively. Mr. Aizman will begin receiving his accrued compensation in equal tranches when we begin generating positive cash flows. |
(2) | Mr. Lakshin is owed an aggregate amount of $152,871 and $249,648 in accrued but unpaid base salary as of December 31, 2022 and 2021, respectively. Mr. Lakshin will begin receiving his accrued compensation in equal tranches when we begin generating positive cash flows. |
(3) | Mr. Huss is owed an aggregate amount of $532,000 in accrued but unpaid base salary as of December 31, 2022. Mr. Huss will begin receiving his accrued compensation in equal tranches when we begin generating positive cash flows. |
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Name and Address of Beneficial Owner(1) | Series of Shares | Amount of Beneficial Ownership Number | Percentage | |||||||||
Greater than 10% Stockholders | ||||||||||||
None | — | |||||||||||
Directors and Executive Officer | ||||||||||||
Edward Aizman | Series G Preferred Stock | 558,000 | 43 | % | ||||||||
Michael E. Lakshin | Series G Preferred Stock | 442,000 | 35 | % | ||||||||
Conrad R Huss | Series B Preferred Stock, Series C Preferred Stock and Series F Preferred Stock (1) | 5,005,101 | 3.7 | % | ||||||||
All directors and executive officers as a group (3 persons) | 6,005,101 | 81.7 | % |
(1) | Mr. Huss owns 5,000 shares of Series B Preferred Stock, 5,000,000 shares of Series C Preferred Stock and 101 shares of Series F Preferred Stock. |
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a. | Audit Services |
b. | Audit-Related Services |
c. | Non-audit services |
d. | Delegation of Authority |
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(a) | EXHIBITS |
† | To be filed by amendment. |
* | Filed herewith. |
** | In accordance with Rule 406T of Regulation S-T, this information is deemed not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
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BOWMO, INC. | |||
Date: April 13, 2023 | By: | Michael Lakshin | |
Name: | Michael Lakshin | ||
Title: | President and Chairman of the Board | ||
(Principal Executive, Financial, and Accounting Officer) |
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