Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2023
Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (3,527,000) $ (1,542,000)
Adjustments to reconcile net loss to net cash flows used in operating activities    
Depreciation and amortization 9,000 15,000
Inventory reserve   794,000
Amortization of discount of notes payable and convertible notes payable 582,000 411,000
Foreign exchange adjustments 471,000 1,205,000
Tax benefit recognized on unrealized gain on debt securities   (117,000)
Realized loss on investment on convertible bond   133,000
Loss on equity method investment 527,000 566,000
Share-based compensation 1,189,000 5,000
Fair value of warrants issued for services 334,000  
Change in fair value of warrant derivative liabilities 14,000 (748,000)
Change in fair value of conversion feature derivative, notes payable (89,000) (3,080,000)
Changes in fair value option instrument 10,000  
Net changes in operating assets and liabilities    
Accounts receivable (1,828,000) 102,000
Inventories 161,000 143,000
Prepaid expenses and other current assets 241,000 113,000
Other non-current assets 186,000 160,000
Accounts payable and accrued expenses 1,001,000 530,000
Other current liabilities (545,000) (2,980,000)
Other long-term liabilities (28,000) (443,000)
Net cash flows used in operating activities (1,292,000) (4,733,000)
CASH FLOWS FROM INVESTING ACTIVITIES    
Sale of convertible bond   2,919,000
Purchase of property and equipment (6,000) (2,000)
Loan to equity method investee (1,085,000) (1,690,000)
Net cash flows provided by (used in) investing activities (1,091,000) 1,227,000
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from notes payable issued, net of issuance cost 1,484,000 20,000
Proceeds from notes payable issued, related parties 227,000 2,036,000
Proceeds from convertible notes payable issued, related party 1,000,000  
Payments of notes payable (520,000)  
Payments of notes payable, related party (50,000)  
Net cash flows provided by financing activities 2,141,000 2,056,000
Effect of exchange rate changes on cash (5,000) (16,000)
Net decrease in cash and cash equivalents (247,000) (1,466,000)
Cash and cash equivalents, beginning of period 2,021,000 2,279,000
Cash and cash equivalents, end of period 1,774,000 813,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES    
Interest paid 276,000 212,000
Income taxes paid 1,000 $ 4,000
NON-CASH INVESING AND FINANCING ACTIVITIES    
Renewal of notes payable including interests capitalized 926,000  
Conversion of convertible note payable to common stock $ 500,000