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, 2022
Dec. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss for the year $ (12,873,102) $ (6,643,116)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation 22,413 11,797
Share based compensation 420,715 796,141
Shares issued for consulting services 760,162 321,121
Shares issued for compensation and bonuses 520,230 134,383
Amortization of debt issuance costs 3,057,825 483,529
Loss on extension of debt term 58,952
Write-off of deposit 151,711
Issuance cost related to warrants 374,465
Change in fair value of derivative liabilities (3,719,869) (1,191,383)
Gain on debt conversion (93,973)
Changes in operating assets and liabilities:    
Other receivables (16,615) (23,353)
Prepaid expenses and other current assets (274,302) (235,713)
Accounts payable and accrued liabilities 75,552 662,173
Right-of-use asset 297,034
Lease liabilities (255,429)
Lease deposit, non-current (50,608)
Deferred rent 12,954
Net cash used in operating activities (12,079,359) (5,136,947)
CASH FLOWS FROM INVESTING ACTIVITIES    
Acquisition of equipment and leasehold improvements (104,986) (25,522)
Payment against acquisition of intangibles (500,000) (225,000)
Return of deposit on purchase of land 20,000
Deposit for purchase of land (12,000)
Construction in progress (55,028) (744,191)
Net cash used in investing activities (640,014) (1,006,713)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from debentures – net of discount 12,750,000
Repayment of convertible debentures (2,805,000)
Financing costs of debentures (1,634,894) (69,000)
Payment for acquisition of intangible asset (750,000)
Proceeds from initial public offering 15,639,990
Payment of IPO costs (2,279,374)
Proceeds from exercise of warrants 238,800
Proceeds from long term loan 15,932
Proceeds from senior secured debentures - net 600,000
Repayment of senior secured debentures (750,000)
Proceeds from exercise of options 9,123
Net cash provided by financing activities 7,560,106 13,405,471
Effect of exchange rate changes on cash (346,703) (139,931)
Change in cash (5,505,970) 7,121,880
Cash, beginning of year 7,775,290 653,410
Cash, end of year 2,269,320 7,775,290
Supplemental cash flow information:    
Cash paid during the period for interest 338,753
Supplemental disclosure of non-cash investing and financing transactions    
Initial fair value of warrants issued in connection with issuance of debentures 4,080,958
Initial fair value of conversion feature of debentures 3,336,535
Prefunded warrants issued related to intangible assets 12,106,677
Prefunded warrants related to land deposit 2,085,960
Shares issued for conversion of convertible debt 131,532
Initial operating lease liability recognized under Topic 842 1,776,599
Initial lease right-of-use asset recognized under Topic 842 1,837,782
Initial fair value of warrants liability 374,028
Preferred stock dividend paid in common shares 735,932
Conversion of Series A preferred stock to common shares 6,717,873
Unpaid amount related to intangible assets included in accrued expenses $ 500,000