Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Dec. 31, 2020
Cash flows from operating activities:      
Net loss $ (10,256,167) $ (2,984,766)  
Adjustments to reconcile net loss to net cash used in operating activities      
Depreciation and amortization 1,223,207 56,246  
Share-based compensation 962,143 836,156  
Amortization of right-of-use asset 42,799 57,798  
Amortization of debt discount 26,728 75,300  
Non-cash interest 352,171 285,835  
Convertible note issued for professional services 75,000    
Deferred taxes (150,000)    
Changes in operating assets and liabilities:      
(Increase) in accounts receivable and unbilled receivable (245,481)    
(Increase) in prepaid expense and other assets (380,738) (106,442)  
Decrease in other receivable 47,202    
Decrease in security deposit 2,592    
Increase in accounts payable 1,566,439 70,023  
(Decrease) increase in accounts payable - related party (15,725) 15,725  
Increase in accrued expenses 397,317 112,573  
Increase in accrued fiduciary obligations 993,041    
(Decrease) in operating lease liabilities (74,096) (64,539)  
(Decrease) in due to related party (240,001)    
Increase in other liabilities 147,001    
Net cash used in operating activities (5,526,568) (1,646,091)  
Cash flows from investing activities:      
Cash and restricted cash acquired as part of Acquisition (see Note 4) 11,384,035    
Capitalization of software development costs (1,211,511) (140,104)  
Purchase of property and equipment (66,617) (32,067)  
Reimbursement of leasehold improvements from sublease   45,640  
Net cash provided by (used in) investing activities 10,105,907 (126,531)  
Cash flows from financing activities:      
Proceeds from stock option exercises 49    
Proceeds from convertible notes 550,000 2,000,000  
Proceeds from short-term promissory note 2,000,000    
Proceeds from issuance of warrants 53,333    
Net cash provided by financing activities 2,603,382 2,000,000  
Net increase in cash, cash equivalents and restricted cash 7,182,721 227,378  
Cash, cash equivalents and restricted cash at beginning of period 1,817,932 246,277 $ 246,277
Cash, cash equivalents and restricted cash at end of period 9,000,653 473,655 1,817,932
Reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheet      
Cash and cash equivalents 1,190,974 414,455 1,754,569
Restricted cash 7,809,679 59,200 63,363
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statement of cash flows 9,000,653 $ 473,655 $ 1,817,932
Supplemental disclosure of non-cash activity      
Conversion of convertible notes into common stock at the closing of the Acquisition 4,174,992    
Common stock issued as part of the Acquisition $ 8,500,000