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 ($)
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (10,825,000) $ (9,084,000)
Adjustments to reconcile net loss to net cash flows used in operating activities    
Depreciation and amortization 40,000 44,000
Inventory reserve 1,240,000 423,000
Amortization of discount of notes payable and convertible notes payable 1,303,000 1,410,000
Foreign exchange adjustments 5,072,000 1,415,000
Net gain on investment in marketable securities 133,000  
Loss on equity method investment 1,490,000 1,999,000
Loss on debt extinguishment 421,000 1,172,000
Gain on disposal of property and equipment   (1,000)
Loss on leased assets 22,000  
Share-based compensation 13,000 548,000
Shares issued for services 55,000 500,000
Change in fair value of warrant derivative liabilities (1,341,000) 322,000
Change in fair value of conversion feature derivative, notes payable (3,235,000) 1,132,000
Net changes in operating assets and liabilities    
Accounts receivable (485,000) (2,469,000)
Inventories 390,000 404,000
Prepaid expenses and other current assets 148,000 202,000
Other non-current assets 446,000 417,000
Income tax receivable and payable 28,000 15,000
Accounts payable and accrued expenses 1,479,000 (173,000)
Other current liabilities (3,199,000) 242,000
Other long-term liabilities 55,000 (637,000)
Net cash flows used in operating activities (6,750,000) (2,119,000)
CASH FLOWS FROM INVESTING ACTIVITIES    
Sale of convertible bond 2,919,000  
Purchases of property and equipment (18,000) (11,000)
Loan to equity method investee (4,226,000) (5,241,000)
Net cash flows used in investing activities (1,325,000) (5,252,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from notes payable issued, net of issuance cost 4,283,000  
Proceeds from notes payable issued, net of issuance cost, related party 5,469,000 1,000,000
Proceeds from convertible notes payable issued, net of issuance cost and discount   14,490,000
Payments of notes payable (2,689,000) (1,079,000)
Payments of convertible notes   (7,200,000)
Net cash flows provided by financing activities 7,063,000 7,211,000
Effect of exchange rate changes on cash (88,000) (6,000)
Net decrease in cash, cash equivalents and restricted cash (1,100,000) (166,000)
Cash, cash equivalents and restricted cash, beginning of period 2,279,000 2,487,000
Cash, cash equivalents and restricted cash, end of period 1,179,000 2,321,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES    
Interest paid 817,000 840,000
Income taxes paid 16,000 43,000
NON-CASH INVESING AND FINANCING ACTIVITIES    
Debt discount due to embedded derivative 68,000 $ 5,555,000
Debt discount due to deferred financing cost 213,000  
Debt discount due to warrants $ 70,000