Six Months Ended

June 30, 2022

June 30, 2021

OPERATING ACTIVITIES

Net Loss

$(4,454,565)

$(2,496,207)

Adjustments to reconcile Net Loss to Net Cash used in operating activities:

Noncash Expenses:

Depreciation and Amortization

61,445

48,814

Gain on Derivative Liability

-

(1,092,441)

Stock Based Compensation - Employees

338,415

233,919

Stock Based Compensation - Third Party Services

23,490

55,937

Stock Based Compensation - Directors

43,442

122,274

Change in assets and liabilities:

Accounts Receivable

120,434

(57,888)

Inventory

(73,586)

(187,348)

Prepaid Assets

(17,197)

(51,591)

Accounts Payable

33,958

186,831

Deferred Revenue

(18,151)

(14,388)

Accrued Expenses

(372,188)

(14,531)

NET CASH USED IN OPERATING ACTIVITIES

(4,314,503)

(3,266,620)

INVESTING ACTIVITIES

Purchase of Property and Equipment

(83,848)

(52,931)

Purchase of Intangible Assets

(115,197)

(55,090)

NET CASH USED IN INVESTING ACTIVITIES

(199,045)

(108,021)

FINANCING ACTIVITIES

Gross Proceeds from Public and Private Issuances of Securities

-

14,869,899

Less Offering Costs

-

(1,600,967)

Proceeds from Exercise of Warrants

-

1,136,010

NET CASH PROVIDED BY FINANCING ACTIVITIES

-

14,404,942

NET CHANGE IN CASH FOR PERIOD

(4,513,548)

11,030,301

CASH AT BEGINNING OF PERIOD

11,447,047

3,700,814

CASH AT END OF PERIOD

$6,933,499

$14,731,115

Supplemental Disclosures:

Noncash investing and financing activities disclosure:

Issuance of Common Shares for Preferred Dividends

-

$75,108

Other noncash operating activities disclosure:

Issuance of Securities for services

$66,932

$178,209

Disclosure of cash paid for:

Interest

$3,389

$3,382

Income Taxes

$-

$-