XML 17 R9.htm IDEA: XBRL DOCUMENT v3.22.2.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities:    
Net loss $ (31,991,431) $ (26,704,996)
Adjustments to reconcile net loss to net cash used in operating activities:    
Loss on impairment of intangible assets 4,640,102
Loss on impairment of goodwill 4,788,268
Depreciation and amortization 1,576,003 1,217,234
Purchase commitment and license liability interest accretion 620,541 188,220
Non-cash lease expense 321,882
Stock-based compensation 820,315 9,485,363
Gain on equity method investment (1,370,837)
Sales return and price protection reserves 1,098,397 257,060
Changes in assets and liabilities, net of acquisitions and the effect of consolidation of equity affiliates:    
Accounts receivable 3,709,280 2,914,584
Operating lease liabilities (327,337)
Prepaid expenses and other assets (1,141,174) (2,277,279)
Other assets 25,000
Accounts payable (728,322) (338,895)
Other non-current liabilities 443,700
Accrued expenses and other liabilities (310,622) (562,253)
Net cash used in operating activities (16,924,098) (16,723,099)
Cash flows from investing activities:    
Acquisition of Le Mans, net of cash acquired 153,250
Acquisition of KartKraft (1,000,000)
Acquisition of Studio 397 (12,785,463)
Purchase of property and equipment (266,948) (665,190)
Net cash used in investing activities (266,948) (14,297,403)
Cash flows from financing activities:    
Advances from related parties 3,012,885 2,073,312
Repayments on advances from related parties (119,002) (12,935,519)
Repayments of purchase commitment liabilities (1,530,000)
Purchase of non-controlling interest (3,599,211)
Contributed capital from non-controlling shareholders 234,754
Payment of license liabilities (275,000) (227,928)
Issuance of common stock in initial public offering, net 63,661,128
Net cash provided by financing activities 1,088,883 49,206,536
Effect of exchange rate changes on cash and cash equivalents 1,499,865 (13,873)
Net (decrease) increase in cash and cash equivalents (14,602,298) 18,172,161
Total cash and cash equivalents at beginning of the period 17,819,640 3,990,532
Total cash and cash equivalents at the end of the period 3,217,342 22,162,693
Cash paid during the year for:    
Interest 17,670 804,674
Non-cash investing and financing activities:    
Shares issued to 704Games former minority shareholders 86
Purchase commitment liability 3,148,240
Reduction of additional paid-in capital for purchased 704Games minority shares 939,511
Reduction of additional paid-in capital for initial public offering issuance costs that were previously paid 587,000
Purchase of additional interest in Le Mans Esports Series Ltd. $ 1,584,892