Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.23.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:    
Net loss $ (26,468,390) $ (15,984,835)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 3,538,237 1,961,733
Loss on disposal of assets 273,430  
Share-based compensation 3,105,385 1,230,792
Shares issued to vendors in exchange for services 38,623  
Amortization of right-of-use asset 598,925 100,160
Amortization of debt discount   26,728
Non-cash interest 258,787 365,880
Convertible note issued for professional services   75,000
Deferred taxes (521,132) (150,000)
Changes in operating assets and liabilities:    
Accounts receivable and unbilled receivable (597,051) (131,509)
Prepaid expense and other assets 892,577 (349,502)
Other receivables 60,864 8,540
Security deposit   2,592
Accounts payable 181,436 41,130
Accounts payable - related party   (15,725)
Accrued expenses (2,052,232) 961,795
Accrued fiduciary obligations (12,823,139) 1,470,159
Operating lease liabilities (661,382) (99,884)
Due to related party (2,805) (240,001)
Other liabilities (1,068,098) (39,972)
Other asset 6,666 (28,333)
Net cash used in operating activities (35,239,299) (10,795,252)
Cash flows from investing activities:    
Cash and restricted cash acquired as part of Acquisitions (see Note 4) 33,388,149 11,384,035
Capitalization of software development costs (602,805) (1,463,812)
Purchases of intangible asset   (3,050)
Purchase of property and equipment (362,768) (273,433)
Net cash provided by investing activities 32,422,576 9,643,740
Cash flows from financing activities:    
Proceeds from initial public offering, net   25,378,663
Proceeds from warrant exercises   900,000
Repayment of convertible note   (783,257)
Proceeds from stock option exercises 196 61
Proceeds from convertible notes   550,000
Proceeds from short-term loan   3,000,000
Repayment of short-term loan   (3,000,000)
Payment for initial public offering costs   (831,577)
Proceeds from issuance of warrants   53,333
Net cash provided by financing activities 196 25,267,223
Net (decrease) increase in cash, cash equivalents and restricted cash (2,816,527) 24,115,711
Cash, cash equivalents and restricted cash at beginning of period 25,933,643 1,817,932
Cash, cash equivalents and restricted cash at end of period 23,117,116 25,933,643
Reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets    
Cash and cash equivalents 13,764,508 19,183,044
Restricted cash 9,352,608 6,750,599
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows 23,117,116 25,933,643
Supplemental disclosure of non-cash activity    
Conversion of convertible notes into common stock at the closing of the Acquisition, net   4,089,921
Conversion of convertible notes into common stock at the IPO   5,106,554
Office improvements included in accrued expenses   27,567
Common stock issued as part of the Acquisition   $ 8,500,000
Long term liability incurred in connection with the acquisition $ 19,900,000