Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (1,340,584) $ (4,092,297)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 165,417 60,441
Non-cash lease expense (20,805) (3,326)
Bad debt expense 133,152 211,390
Deferred income tax (45,985) 0
Share based compensation 728,443 1,629,604
Change in operating assets and liabilities:    
Accounts receivable (1,263,351) 1,189,811
Agent annual fees receivable (61,746) (245,451)
Prepaid and other assets (816,919) 336,749
Accounts payable 1,467,841 118,153
Accrued liabilities (735,691) (321,376)
Escrow liabilities 608,369  
Operating lease liabilities 22,908 5,330
Other assets (55,301)  
Net cash used in operating activities (1,214,252) (1,110,972)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (66,254) (41,336)
Purchase of Verus, net of cash acquired of $464,095 (256,544)  
Purchase of intangible assets (421,948) (331,480)
Issuance of loan receivable (165,000)  
Net cash used in investing activities (909,746) (372,816)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Principal payments on long-term debt (17,095) (16,800)
Proceeds from issuance of common stock 83,014 1,071,466
Proceeds from the issuance of common stock in connection with IPO 34,300,000  
Payment of offering costs in connection with issuance of common stock in IPO (3,183,284)  
Purchase of treasury stock (30,000)  
Payment of note payable (500,000)  
Proceeds from debt 453,581  
Net cash provided by financing activities 31,106,216 1,054,666
Net increase (decrease) in cash, cash equivalents, and restricted cash 28,982,218 (429,122)
Cash, cash equivalents, and restricted cash at beginning of period 579,416 1,008,538
Cash, cash equivalents, and restricted cash at end of period 29,561,634 579,416
Supplemental disclosure of cash and non-cash transactions:    
Cash paid for interest 88,313 109,856
Income taxes paid 22,775 1,250
Right of use assets obtained in exchange for lease liabilities 159,891 261,814
Issuance of common stock warrants as offering costs in connection with IPO 677,082  
Issuance of common stock for the purchase of Verus 252,341  
Reconciliation of cash and restricted cash    
Total cash, cash equivalents, and restricted cash shown in statement of cash flows $ 29,561,634 $ 579,416