| Delaware | | | 8731 | | | 27-0480143 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) | |
| Barry I. Grossman Ellenoff Grossman & Schole LLP 1345 Avenue of the Americas New York, New York 10105 Telephone: (212) 370-1300 | | | Brad L. Shiffman Blank Rome LLP 1271 Avenue of the Americas New York, NY 10020 Telephone: (212) 885-5000 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
Title of Each Class of Security Being Registered | | Amount Being Registered(1) | | Proposed Maximum Offering Price per Security(2) | | Proposed Maximum Aggregate Offering Price(1)(2) | | Amount of Registration Fee(3) | | | Proposed Maximum Aggregate Offering Price(1)(2) | | Amount of Registration Fee(3) | | |||||||||||||||||||||
Common Stock, $0.0001 par value | | | | | $ | | | | $ | 20,000,000 | | | | $ | 2,182 | | | | | $ | 22,999,997.70 | | | | $ | 2,509.30 | | | |||||||
Common Stock underlying Representative’s Warrants, $0.0001 par value | | | | | $ | | | | $ | 1,250,000 | | | | $ | 136.38 | | | | | $ | 1,149,999.89 | | | | $ | 125.46 | | | |||||||
Total | | | | | | | | | | $ | 21,250,000 | | | | $ | 2,318.38 | | | | | $ | 24,149,997.59 | | | | $ | 2,634.76 | | |
| PRELIMINARY PROSPECTUS | | | SUBJECT TO COMPLETION | | | DATED | |
| | | Per Share | | | Total | | ||||||
Initial public offering price | | | | | | ||||||||
Underwriting discount(1) | | | | | | | | ||||||
Proceeds, before expenses, to iSpecimen Inc. | | | | | | | |
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| | | | F-1 | | |
| | Years Ended December 31, | | Nine Months Ended September 30, | | | Three Months Ended March 31, | | Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
| | | | | | | | | | | | (Unaudited) | | | (Unaudited) | | | | ||||||||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Revenue | | | $ | 4,298,350 | | | | $ | 4,394,818 | | | | $ | 5,466,375 | | | | $ | 3,007,911 | | | | | $ | 2,963,807 | | | | $ | 1,711,660 | | | | $ | 8,184,106 | | | | $ | 4,298,350 | | | ||||||||
Total operating expenses | | | | 8,178,439 | | | | | 7,751,119 | | | | | 6,938,305 | | | | | 6,170,707 | | | | | | 3,906,451 | | | | | 2,157,193 | | | | | 10,590,486 | | | | | 8,178,439 | | | ||||||||
Loss from operations | | | | (3,880,089) | | | | | (3,356,301) | | | | | (1,471,930) | | | | | (3,162,796) | | | | | | (942,644) | | | | | (445,533) | | | | | (2,406,380) | | | | | (3,880,089) | | | ||||||||
Other expense, net | | | | (1,003,961) | | | | | (2,117,751) | | | | | (1,586,610) | | | | | (333,175) | | | | | | (3,020,847) | | | | | (1,192,446) | | | | | (2,245,704) | | | | | (1,003,961) | | | ||||||||
Net loss | | | | (4,727,050) | | | | | (5,347,052) | | | | | (3,058,540) | | | | | (3,378,221) | | | | | | (3,963,491) | | | | | (1,637,979) | | | | | (4,652,084) | | | | | (4,727,050) | | | ||||||||
Net loss per common share – basic and diluted(1) | | | $ | (0.91) | | | | $ | (1.03) | | | | $ | (0.59) | | | | $ | (0.65) | | | | | $ | (4.23) | | | | $ | (1.75) | | | | $ | (4.97) | | | | $ | (5.05) | | | ||||||||
Weighted average common shares outstanding – basic and diluted(1) | | | | 5,190,810 | | | | | 5,196,485 | | | | | 5,191,457 | | | | | 5,190,583 | | | | | | 936,213 | | | | | 936,213 | | | | | 936,213 | | | | | 936,096 | | | ||||||||
Pro forma net loss (unaudited)(2) | | | $ | (4,419,905) | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Pro forma net loss per common share – basic and diluted (unaudited)(2) | | | $ | (1.10) | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Pro forma weighted average common shares outstanding – basic and diluted (unaudited)(2) | | | | 4,018,129 | | | | | | | | | | | | | | | | | |
| | | As of December 31, | | | As of September 30, 2020 | | ||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||
| | | | | | | | | | | | | | | (Unaudited) | | |||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Current assets | | | | $ | 1,580,662 | | | | | $ | 2,303,502 | | | | | $ | 3,359,897 | | |
Total assets | | | | | 4,214,588 | | | | | | 4,044,626 | | | | | | 6,047,240 | | |
Current liabilities | | | | | 15,760,261 | | | | | | 11,295,302 | | | | | | 20,261,087 | | |
Total liabilities | | | | | 15,760,261 | | | | | | 11,295,302 | | | | | | 20,570,856 | | |
Convertible preferred stock | | | | | 11,173,076 | | | | | | 11,173,076 | | | | | | 11,173,076 | | |
Total stockholders’ deficit | | | | | (22,718,749) | | | | | | (18,423,752) | | | | | | (25,696,692) | | |
| | | As of March 31, 2021 | | |||||||||||||||
| | | Actual | | | Pro Forma | | | Pro Forma As Adjusted(2) | | |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Cash | | | | $ | 355,126 | | | | | $ | 855,126 | | | | | $ | 16,286,861 | | |
Working capital(1) | | | | | (22,751,850) | | | | | | (5,591,620) | | | | | | 12,308,378 | | |
Total assets | | | | | 5,823,755 | | | | | | 6,323,755 | | | | | | 21,755,490 | | |
Total liabilities | | | | | 25,870,101 | | | | | | 9,209,871 | | | | | | 6,741,607 | | |
Convertible preferred stock | | | | | 11,173,076 | | | | | | — | | | | | | — | | |
Total stockholders’ (deficit) equity | | | | | (31,219,422) | | | | | | (2,886,116) | | | | | | 15,013,882 | | |
| | | As of September 30, 2020 | | |||||||||||||||
| | | Actual | | | Pro forma | | | Pro forma as adjusted | | |||||||||
| | | (Unaudited) | | |||||||||||||||
Cash | | | | $ | 957,246 | | | | | $ | — | | | | | $ | — | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | $ | 5,489,728 | | | | | $ | — | | | | | $ | — | | |
Bridge notes payable, net of debt issuance costs | | | | | 4,588,504 | | | | | | | | | | | | | | |
Bridge notes payable, related parties | | | | | 1,905,000 | | | | | | | | | | | | | | |
Notes payable (including short-term maturities of $473,239) | | | | | 783,008 | | | | | | | | | | | | | | |
Total Debt | | | | | 12,766,240 | | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 3,174,363 shares issued and outstanding, actual; shares outstanding pro forma; and shares outstanding pro forma as adjusted | | | | | 7,999,997 | | | | | | | | | | | | | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 556,540 issued and outstanding, actual; shares outstanding pro forma; and shares outstanding pro forma as adjusted | | | | | 561,041 | | | | | | | | | | | | | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, issued and outstanding, actual; shares outstanding pro forma; and shares outstanding pro forma as adjusted | | | | | 2,612,038 | | | | | | | | | | | | | | |
Total convertible preferred stock | | | | | 11,173,076 | | | | | | | | | | | | | | |
Stockholders’ Deficit: | | | | | | | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized; 5,363,365 shares outstanding, actual; shares outstanding pro forma; and shares outstanding pro forma as adjusted | | | | | 537 | | | | | | | | | | | | | | |
Additional paid-in capital | | | | | 1,766,986 | | | | | | | | | | | | | | |
Treasury stock, at cost, 171,908 shares | | | | | (172) | | | | | | | | | | | | | | |
| | | As of March 31, 2021 | | |||||||||||||||
| | | Actual | | | Pro Forma | | | Pro Forma As Adjusted(1) | | |||||||||
| | | (Unaudited) | | |||||||||||||||
Cash | | | | $ | 355,126 | | | | | $ | 855,126 | | | | | $ | 16,286,861 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | $ | 5,491,899 | | | | | $ | — | | | | | $ | — | | |
Bridge notes payable, net of debt discount | | | | | 4,185,172 | | | | | | 2,480,077 | | | | | | 2,480,077 | | |
Bridge notes payable, related parties, net of debt discount | | | | | 1,735,094 | | | | | | 246,582 | | | | | | 246,582 | | |
Accrued interest | | | | | 4,253,987 | | | | | | 2,468,263 | | | | | | — | | |
Derivative liability for embedded conversion features on convertible notes payable | | | | | 2,527,000 | | | | | | — | | | | | | — | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties | | | | | 3,662,000 | | | | | | — | | | | | | — | | |
Total debt | | | | | 21,855,152 | | | | | | 5,194,922 | | | | | | 2,726,659 | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding, actual; no shares outstanding pro forma; and no shares outstanding pro forma as adjusted | | | | | 7,999,997 | | | | | | — | | | | | | — | | |
1) On March 15, 2021, the Company entered into the Amendment to convert, effective with this offering, approximately $4.1 million of the outstanding principal of and accrued interest on the Bridge Notes. We will use a portion of the proceeds from this offering to repay the approximately $2.5 million of the remaining accrued and unpaid interest of the Bridge Notes as of March 31, 2021. The remaining approximately $3.0 million principal amount of Bridge Notes outstanding as of March 31, 2021, shall, pursuant to the terms of the Amendment, automatically be amended to adjust (i) the interest rates to 15% per annum and (ii) the maturity date to a date that is 18 months from the closing date of this offering. On April 16, 2021 and May 20, 2021, the Company issued additional Related Party Bridge Notes to related parties in the aggregate amount of $500,000 in order to finance the Company’s working capital needs. The note holders have agreed to convert the outstanding principal and accrued and unpaid interest of the notes into shares of common stock upon the consummation of this offering. See Certain Relationships and Related Party Transactions section. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assumed initial public offering price per share of common stock | | | | | | $ | 9.00 | | | ||||
| Historical net tangible book value (deficit) per share as of March 31, 2021 | | | | $ | (33.35) | | | | | | | | |
| Increase per share attributed to the conversion of outstanding preferred stock, Convertible Notes, and Bridge Notes | | | | | 32.63 | | | | | | | | |
| Pro forma net tangible book value per share as of March 31, 2021 before this offering | | | | | (0.72) | | | | | | | | |
| Increase in pro forma as adjusted net tangible book value per share attributable to investors in this offering | | | | | 3.13 | | | | | | | | |
| Pro forma as adjusted net tangible book value per share after this offering | | | | | | | | | | | 2.41 | | |
| Dilution per share to new common stock investors in this offering | | | | | | | | | | $ | 6.59 | | |
| | Shares purchased | | Total consideration | | | Average price per share | | | Shares purchased | | Total consideration | | | Average price per share | | ||||||||||||||||||||||||||||||||||||||||||||||
| | Number | | Percentage | | Amount | | Percentage | | | Number | | Percentage | | Amount | | Percentage | | ||||||||||||||||||||||||||||||||||||||||||||
Existing Shareholders | | | | 5,363,365 | | | | | % | | | | | 1,737,720 | | | | | % | | | | $ | 0.32 | | | | | | 4,018,129 | | | | | 64% | | | | $ | 511,186 | | | | | 2% | | | | $ | 0.13 | | | ||||||||||
New Investors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,222,222 | | | | | 36 | | | | | 19,999,998 | | | | | 98 | | | | | 9.00 | | | ||||||||||
Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6,240,351 | | | | | 100% | | | | $ | 20,511,184 | | | | | 100% | | | | $ | 3.29 | | |
| | Years Ended December 31, | | Nine Months Ended September 30, | | | Three Months Ended March 31, | | Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
| | | | | | | | | | | | (Unaudited) | | | (Unaudited) | | | | ||||||||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Revenue | | | $ | 4,298,350 | | | | $ | 4,394,818 | | | | $ | 5,466,375 | | | | $ | 3,007,911 | | | | | $ | 2,963,807 | | | | $ | 1,711,660 | | | | $ | 8,184,106 | | | | $ | 4,298,350 | | | ||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Cost of revenue | | | | 2,127,900 | | | | | 2,362,495 | | | | | 2,032,111 | | | | | 1,506,820 | | | | | | 1,623,651 | | | | | 654,268 | | | | | 3,585,477 | | | | | 2,127,900 | | | ||||||||
Technology | | | | 993,329 | | | | | 1,210,079 | | | | | 1,131,695 | | | | | 778,892 | | | | | | 409,951 | | | | | 426,712 | | | | | 1,426,473 | | | | | 993,329 | | | ||||||||
Sales and marketing | | | | 1,413,059 | | | | | 1,313,881 | | | | | 1,305,897 | | | | | 1,029,049 | | | | | | 529,387 | | | | | 431,640 | | | | | 1,775,347 | | | | | 1,413,059 | | | ||||||||
Supply development | | | | 792,778 | | | | | 673,439 | | | | | 395,200 | | | | | 593,377 | | | | | | 111,576 | | | | | 114,605 | | | | | 495,967 | | | | | 792,778 | | | ||||||||
Fulfillment | | | | 914,633 | | | | | 736,799 | | | | | 642,140 | | | | | 701,037 | | | | | | 269,096 | | | | | 215,171 | | | | | 853,450 | | | | | 914,633 | | | ||||||||
General and administrative | | | | 1,936,740 | | | | | 1,454,426 | | | | | 1,431,262 | | | | | 1,561,532 | | | | | | 962,790 | | | | | 314,797 | | | | | 2,453,772 | | | | | 1,936,740 | | | ||||||||
Total operating expenses | | | | 8,178,439 | | | | | 7,751,119 | | | | | 6,938,305 | | | | | 6,170,707 | | | | | | 3,906,451 | | | | | 2,157,193 | | | | | 10,590,486 | | | | | 8,178,439 | | | ||||||||
Loss from operations | | | | (3,880,089) | | | | | (3,356,301) | | | | | (1,471,930) | | | | | (3,162,796) | | | | | | (942,644) | | | | | (445,533) | | | | | (2,406,380) | | | | | (3,880,089) | | | ||||||||
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Interest expense | | | | (1,724,450) | | | | | (1,214,983) | | | | | (1,517,697) | | | | | (1,209,857) | | | | | | (853,147) | | | | | (587,669) | | | | | (2,096,795) | | | | | (1,724,450) | | | ||||||||
Change in fair value of derivative liability | | | | 551,000 | | | | | (946,000) | | | | | (76,000) | | | | | 725,000 | | | |||||||||||||||||||||||||||||
Change in fair value of derivative liability on convertible notes | | | | (154,000) | | | | | (605,000) | | | | | (159,000) | | | | | 551,000 | | | |||||||||||||||||||||||||||||
Change in fair value of derivative liability on bridge notes and bridge notes, related parties | | | | (48,000) | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Loss on extinguishment of bridge notes and bridge notes, related parties | | | | (2,750,171) | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Gain on extinguishment of note payable | | | | 788,156 | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Other income | | | | 168,859 | | | | | 41,733 | | | | | 6,691 | | | | | 151,073 | | | | | | (3,732) | | | | | — | | | | | 9,654 | | | | | 168,859 | | | ||||||||
Interest income | | | | 630 | | | | | 1,499 | | | | | 396 | | | | | 609 | | | | | | 47 | | | | | 223 | | | | | 437 | | | | | 630 | | | ||||||||
Other expense, net | | | | (1,003,961) | | | | | (2,117,751) | | | | | (1,586,610) | | | | | (333,175) | | | | | | (3,020,847) | | | | | (1,192,446) | | | | | (2,245,704) | | | | | (1,003,961) | | | ||||||||
Net loss before benefit from income taxes | | | | (4,884,050) | | | | | (5,474,052) | | | | | (3,058,540) | | | | | (3,495,971) | | | | | | (3,963,491) | | | | | (1,637,979) | | | | | (4,652,084) | | | | | (4,884,050) | | | ||||||||
Benefit from income taxes | | | | 157,000 | | | | | 127,000 | | | | | — | | | | | 117,750 | | | | | | — | | | | | — | | | | | — | | | | | 157,000 | | | ||||||||
Net loss | | | $ | (4,727,050) | | | | $ | (5,347,052) | | | | $ | (3,058,540) | | | | $ | (3,378,221) | | | | | $ | (3,963,491) | | | | $ | (1,637,979) | | | | $ | (4,652,084) | | | | $ | (4,727,050) | | | ||||||||
Net loss per common share – basic and diluted(1) | | | $ | (0.91) | | | | $ | (1.03) | | | | $ | (0.59) | | | | $ | (0.65) | | | | | $ | (4.23) | | | | $ | (1.75) | | | | $ | (4.97) | | | | $ | (5.05) | | | ||||||||
Weighted average common shares outstanding – basic and diluted(1) | | | | 5,190,810 | | | | | 5,196,485 | | | | | 5,191,457 | | | | | 5,190,583 | | | |||||||||||||||||||||||||||||
Pro forma net loss per common share – basic and diluted (unaudited)(2) | | | $ | | | | $ | | | | $ | | | | $ | | | |||||||||||||||||||||||||||||||||
Pro forma weighted average common shares outstanding – basic and diluted (unaudited)(2) | | | $ | | | | $ | | | | $ | | | | $ | | | |
| | | Three Months Ended March 31, | | | Years Ended December 31, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (Unaudited) | | | | | ||||||||||||||||||
Weighted average common shares outstanding – basic and diluted(1) | | | | | 936,213 | | | | | | 936,213 | | | | | | 936,213 | | | | | | 936,096 | | |
Pro forma net loss (unaudited)(2) | | | | $ | (4,419,905) | | | | | | | | | | | | | | | | | | | | |
Pro forma net loss per common share – basic and diluted (unaudited)(2) | | | | $ | (1.10) | | | | | | | | | | | | | | | | | | | | |
Pro forma weighted average common shares outstanding – basic and diluted (unaudited)(2) | | | | $ | (4,018,129) | | | | | | | | | | | | | | | | | | | | |
|
| | As of December 31, | | | As of September 30, 2020 | | | | As of March 31, 2021 | | | As of December 31, | | |||||||||||||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||||||||||||||
| | | | | | | | | | | | (Unaudited) | | | (Unaudited) | | | |||||||||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Cash | | | $ | 53,893 | | | | $ | 1,130,364 | | | | $ | 957,246 | | | | | $ | 355,126 | | | | $ | 695,909 | | | | $ | 53,893 | | | ||||||
Working capital(1) | | | | (14,179,599) | | | | | (8,991,800) | | | | | (16,901,190) | | | | | | (22,751,850) | | | | | (18,663,321) | | | | | (14,179,599) | | | ||||||
Total assets | | | | 4,214,588 | | | | | 4,044,626 | | | | | 6,047,240 | | | | | | 5,823,755 | | | | | 6,209,696 | | | | | 4,214,588 | | | ||||||
Accrued interest | | | | 4,253,987 | | | | | 3,696,944 | | | | | 1,745,515 | | | ||||||||||||||||||||||
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | 5,350,278 | | | | | 4,801,189 | | | | | 5,489,728 | | | | | | 5,491,899 | | | | | 5,490,811 | | | | | 5,350,278 | | | ||||||
Derivative liability for embedded conversion features | | | | 2,214,000 | | | | | 2,765,000 | | | | | 2,290,000 | | | ||||||||||||||||||||||
Bridge notes payable, net of debt issuance costs | | | | 3,586,326 | | | | | 1,117,286 | | | | | 4,588,504 | | | ||||||||||||||||||||||
Bridge notes payable, related parties | | | | 1,655,000 | | | | | 1,050,000 | | | | | 1,905,000 | | | ||||||||||||||||||||||
Derivative liability for embedded conversion features on convertible notes | | | | 2,527,000 | | | | | 2,373,000 | | | | | 2,214,000 | | | ||||||||||||||||||||||
Bridge notes payable, net of debt discount and debt issuance costs | | | | 4,185,172 | | | | | 4,589,228 | | | | | 3,586,326 | | | ||||||||||||||||||||||
Bridge notes payable, related parties, net of debt discount | | | | 1,735,094 | | | | | 1,905,000 | | | | | 1,655,000 | | | ||||||||||||||||||||||
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties | | | | 3,662,000 | | | | | — | | | | | — | | | ||||||||||||||||||||||
Note payable, current portion | | | | — | | | | | — | | | | | 473,239 | | | | | | — | | | | | 604,109 | | | | | — | | | ||||||
Note payable, net of current portion | | | | — | | | | | — | | | | | 309,769 | | | | | | — | | | | | 178,899 | | | | | — | | | ||||||
Convertible preferred stock | | | | 11,173,076 | | | | | 11,173,076 | | | | | 11,173,076 | | | | | | 11,173,076 | | | | | 11,173,076 | | | | | 11,173,076 | | | ||||||
Total stockholders’ deficit | | | | (22,718,749) | | | | | (18,423,752) | | | | | (25,696,692) | | |
| | | As of March 31, 2021 | | | As of December 31, | | ||||||||||||
| | | 2020 | | | 2019 | | ||||||||||||
| | | (Unaudited) | | | | |||||||||||||
Total stockholders’ deficit | | | | | (31,219,422) | | | | | | (27,277,967) | | | | | | (22,718,749) | | |
| | Three Months Ended September 30, | | Change | | | Three Months Ended March 31, | | Change | | ||||||||||||||||||||||||||||||||||||||||
| | 2020 | | 2019 | | Dollars | | Percentage | | | 2021 | | 2020 | | Dollars | | Percentage | | ||||||||||||||||||||||||||||||||
| | (unaudited) | | | | | | | | | | | | | (unaudited) | | | | | | | | | | | | ||||||||||||||||||||||||
Revenue | | | $ | 2,250,147 | | | | $ | 692,707 | | | | $ | 1,557,440 | | | | | 225% | | | | | $ | 2,963,807 | | | | $ | 1,711,660 | | | | $ | 1,252,147 | | | | | 73% | | | ||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Cost of revenue | | | | 903,862 | | | | | 486,665 | | | | | 417,197 | | | | | 86% | | | |||||||||||||||||||||||||||||
Cost of Revenue | | | | 1,623,651 | | | | | 654,268 | | | | | 969,383 | | | | | 148% | | | |||||||||||||||||||||||||||||
Technology | | | | 413,381 | | | | | 302,934 | | | | | 110,447 | | | | | 36% | | | | | | 409,951 | | | | | 426,712 | | | | | (16,761) | | | | | (4)% | | | ||||||||
Sales and marketing | | | | 506,641 | | | | | 357,209 | | | | | 149,432 | | | | | 42% | | | | | | 529,387 | | | | | 431,640 | | | | | 97,747 | | | | | 23% | | | ||||||||
Supply development | | | | 133,007 | | | | | 205,659 | | | | | (72,652) | | | | | (35)% | | | | | | 111,576 | | | | | 114,605 | | | | | (3,029) | | | | | (3)% | | | ||||||||
Fulfillment | | | | 241,785 | | | | | 227,182 | | | | | 14,603 | | | | | 6% | | | | | | 269,096 | | | | | 215,171 | | | | | 53,925 | | | | | 25% | | | ||||||||
General and administrative | | | | 774,407 | | | | | 645,627 | | | | | 128,780 | | | | | 20% | | | | | | 962,790 | | | | | 314,797 | | | | | 647,993 | | | | | 206% | | | ||||||||
Total operating expenses | | | | 2,973,083 | | | | | 2,225,276 | | | | | 747,807 | | | | | 34% | | | | | | 3,906,451 | | | | | 2,157,193 | | | | | 1,749,258 | | | | | 81% | | | ||||||||
Loss from operations | | | | (722,936) | | | | | (1,532,569) | | | | | 809,633 | | | | | (53)% | | | | | | (942,644) | | | | | (445,533) | | | | | (497,111) | | | | | (112)% | | | ||||||||
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Interest expense | | | | (469,477) | | | | | (454,859) | | | | | (14,618) | | | | | 3% | | | | | | (853,147) | | | | | (587,669) | | | | | (265,478) | | | | | (45)% | | | ||||||||
Change in fair value of derivative liability | | | | (54,000) | | | | | (158,000) | | | | | 104,000 | | | | | (66)% | | | |||||||||||||||||||||||||||||
Change in fair value of derivative liability on convertible notes | | | | (154,000) | | | | | (605,000) | | | | | 451,000 | | | | | 75% | | | |||||||||||||||||||||||||||||
Change in fair value of derivative liability on bridge notes and bridge notes, related parties | | | | (48,000) | | | | | — | | | | | (48,000) | | | | | (100)% | | | |||||||||||||||||||||||||||||
Loss on extinguishment of bridge notes and bridge notes, related parties | | | | (2,750,171) | | | | | — | | | | | (2,750,171) | | | | | (100)% | | | |||||||||||||||||||||||||||||
Gain on extinguishment of note payable | | | | 788,156 | | | | | — | | | | | 788,156 | | | | | 100% | | | |||||||||||||||||||||||||||||
Other income | | | | — | | | | | 29 | | | | | (29) | | | | | (100)% | | | | | | (3,732) | | | | | — | | | | | (3,732) | | | | | (100)% | | | ||||||||
Interest income | | | | 87 | | | | | 156 | | | | | (69) | | | | | (44)% | | | | | | 47 | | | | | 223 | | | | | (176) | | | | | (79)% | | | ||||||||
Other income (expense), net | | | | (523,390) | | | | | (612,674) | | | | | 89,284 | | | | | (15)% | | | |||||||||||||||||||||||||||||
Other expense, net | | | | (3,020,847) | | | | | (1,192,446) | | | | | (1,828,401) | | | | | (153)% | | | |||||||||||||||||||||||||||||
Benefit from income taxes | | | | — | | | | | 39,250 | | | | | (39,250) | | | | | (100)% | | | | | | — | | | | | — | | | | | — | | | | | 100% | | | ||||||||
Net loss | | | $ | (1,246,326) | | | | $ | (2,105,993) | | | | $ | 859,667 | | | | | (41)% | | | | | $ | (3,963,491) | | | | $ | (1,637,979) | | | | $ | (2,325,512) | | | | | (142)% | | |
| | | Years Ended December 31, | | | Change | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | Dollars | | | Percentage | | ||||||||||||
Revenue | | | | $ | 8,184,106 | | | | | $ | 4,298,350 | | | | | $ | 3,885,756 | | | | | | 90% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 3,585,477 | | | | | | 2,127,900 | | | | | | 1,457,577 | | | | | | 68% | | |
Technology | | | | | 1,426,473 | | | | | | 993,329 | | | | | | 433,144 | | | | | | 44% | | |
Sales and marketing | | | | | 1,775,347 | | | | | | 1,413,059 | | | | | | 362,288 | | | | | | 26% | | |
Supply development | | | | | 495,967 | | | | | | 792,778 | | | | | | (296,811) | | | | | | (37)% | | |
Fulfillment | | | | | 853,450 | | | | | | 914,633 | | | | | | (61,183) | | | | | | (7)% | | |
General and administrative | | | | | 2,453,772 | | | | | | 1,936,740 | | | | | | 517,032 | | | | | | 27% | | |
Total operating expenses | | | | | 10,590,486 | | | | | | 8,178,439 | | | | | | 2,412,047 | | | | | | 29% | | |
Loss from operations | | | | | (2,406,380) | | | | | | (3,880,089) | | | | | | 1,473,709 | | | | | | 38% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (2,096,795) | | | | | | (1,724,450) | | | | | | (372,345) | | | | | | (22)% | | |
Change in fair value of derivative liability | | | | | (159,000) | | | | | | 551,000 | | | | | | (710,000) | | | | | | (129)% | | |
Other income | | | | | 9,654 | | | | | | 168,859 | | | | | | (159,205) | | | | | | (94)% | | |
Interest income | | | | | 437 | | | | | | 630 | | | | | | (193) | | | | | | (31)% | | |
Other expense, net | | | | | (2,245,704) | | | | | | (1,003,961) | | | | | | (1,241,743) | | | | | | (124)% | | |
Benefit from income taxes | | | | | — | | | | | | 157,000 | | | | | | (157,000) | | | | | | (100)% | | |
Net loss | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | | | | $ | 74,966 | | | | | | 2% | | |
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | Dollars | | | Percentage | | ||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | |||||||||
Revenue | | | | $ | 5,466,375 | | | | | $ | 3,007,911 | | | | | $ | 2,458,464 | | | | | | 82% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 2,032,111 | | | | | | 1,506,820 | | | | | | 525,291 | | | | | | 35% | | |
Technology | | | | | 1,131,695 | | | | | | 778,892 | | | | | | 352,803 | | | | | | 45% | | |
Sales and marketing | | | | | 1,305,897 | | | | | | 1,029,049 | | | | | | 276,848 | | | | | | 27% | | |
Supply development | | | | | 395,200 | | | | | | 593,377 | | | | | | (198,177) | | | | | | (33)% | | |
Fulfillment | | | | | 642,140 | | | | | | 701,037 | | | | | | (58,897) | | | | | | (8)% | | |
General and administrative | | | | | 1,431,262 | | | | | | 1,561,532 | | | | | | (130,270) | | | | | | (8)% | | |
Total operating expenses | | | | | 6,938,305 | | | | | | 6,170,707 | | | | | | 767,598 | | | | | | 12% | | |
Loss from operations | | | | | (1,471,930) | | | | | | (3,162,796) | | | | | | 1,690,866 | | | | | | (53)% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (1,517,697) | | | | | | (1,209,857) | | | | | | (307,840) | | | | | | 25% | | |
Change in fair value of derivative liability | | | | | (76,000) | | | | | | 725,000 | | | | | | (801,000) | | | | | | (110)% | | |
Other income | | | | | 6,691 | | | | | | 151,073 | | | | | | (144,382) | | | | | | (96)% | | |
Interest income | | | | | 396 | | | | | | 609 | | | | | | (213) | | | | | | (35)% | | |
Other income (expense), net | | | | | (1,586,610) | | | | | | (333,175) | | | | | | (1,253,435) | | | | | | 376% | | |
Benefit from income taxes | | | | | — | | | | | | 117,750 | | | | | | (117,500) | | | | | | (100)% | | |
Net loss | | | | $ | (3,058,540) | | | | | $ | (3,378,221) | | | | | $ | 319,681 | | | | | | (9)% | | |
| | | Years Ended December 31, | | | Change | | ||||||||||||||||||
| | | 2019 | | | 2018 | | | Dollars | | | Percentage | | ||||||||||||
Revenue | | | | $ | 4,298,350 | | | | | $ | 4,394,818 | | | | | $ | (96,468) | | | | | | (2)% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of Revenue | | | | | 2,127,900 | | | | | | 2,362,495 | | | | | | (234,595) | | | | | | (10)% | | |
Technology | | | | | 993,329 | | | | | | 1,210,079 | | | | | | (216,750) | | | | | | (18)% | | |
Sales and marketing | | | | | 1,413,059 | | | | | | 1,313,881 | | | | | | 99,178 | | | | | | 8% | | |
Supply development | | | | | 792,778 | | | | | | 673,439 | | | | | | 119,339 | | | | | | 18% | | |
Fulfillment | | | | | 914,633 | | | | | | 736,799 | | | | | | 177,834 | | | | | | 24% | | |
General and administrative | | | | | 1,936,740 | | | | | | 1,454,426 | | | | | | 482,314 | | | | | | 33% | | |
Total operating expenses | | | | | 8,178,439 | | | | | | 7,751,119 | | | | | | 427,320 | | | | | | 6% | | |
Loss from operations | | | | | (3,880,089) | | | | | | (3,356,301) | | | | | | (523,788) | | | | | | 16% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (1,724,450) | | | | | | (1,214,983) | | | | | | (509,467) | | | | | | 42% | | |
Change in fair value of derivative liability | | | | | 551,000 | | | | | | (946,000) | | | | | | 1,497,000 | | | | | | (158)% | | |
Interest income | | | | | 168,859 | | | | | | 41,733 | | | | | | 127,126 | | | | | | 305% | | |
Other income | | | | | 630 | | | | | | 1,499 | | | | | | (869) | | | | | | (58)% | | |
Other expense (income), net | | | | | (1,003,961) | | | | | | (2,117,751) | | | | | | 1,113,790 | | | | | | (53)% | | |
Benefit from income taxes | | | | | 157,000 | | | | | | 127,000 | | | | | | 30,000 | | | | | | 24% | | |
Net loss | | | | $ | (4,727,050) | | | | | $ | (5,347,052) | | | | | $ | 620,002 | | | | | | (12)% | | |
| | | Nine Months Ended September 30, | | | Change | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | Dollars | | | Percentage | | ||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | |||||||||
Net cash flows used in operating activities | | | | $ | (263,728) | | | | | $ | (1,851,395) | | | | | $ | 1,587,667 | | | | | | (86)% | | |
Net cash flows used in investing activities | | | | | (865,927) | | | | | | (1,119,244) | | | | | | 253,317 | | | | | | (23)% | | |
Net cash flows provided by financing activities | | | | | 2,033,008 | | | | | | 2,373,674 | | | | | | (340,666) | | | | | | (14)% | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 903,353 | | | | | $ | (596,965) | | | | | $ | 1,500,318 | | | | | | | | |
| | | Three Months Ended March 31, | | | Change | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | Dollars | | | Percentage | | ||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | |||||||||
Net cash flows used in operating activities | | | | $ | (126,249) | | | | | $ | (426,011) | | | | | $ | 299,762 | | | | | | 70% | | |
Net cash flows used in investing activities | | | | | (214,534) | | | | | | (260,204) | | | | | | 45,670 | | | | | | 18% | | |
Net cash flows provided by financing activities | | | | | — | | | | | | 1,000,000 | | | | | | (1,000,000) | | | | | | (100)% | | |
Net (decrease) increase in cash and cash equivalents | | | | $ | (340,783) | | | | | $ | 313,785 | | | | | $ | (654,568) | | | | | | | | |
| | | Years Ended December 31, | | | Change | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | Dollars | | | Percentage | | ||||||||||||
Net cash flows used in operating activities | | | | $ | (288,380) | | | | | $ | (2,679,900) | | | | | $ | 2,391,520 | | | | | | 89% | | |
Net cash flows used in investing activities | | | | | (1,102,612) | | | | | | (1,475,245) | | | | | | 372,633 | | | | | | 25% | | |
Net cash flows provided by financing activities | | | | | 2,033,008 | | | | | | 3,078,674 | | | | | | (1,045,666) | | | | | | (34)% | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 642,016 | | | | | $ | (1,076,471) | | | | | $ | 1,718,487 | | | | | | | | |
| | | Years Ended December 31, | | | Change | | ||||||||||||||||||
| | | 2019 | | | 2018 | | | Dollars | | | Percentage | | ||||||||||||
Net cash flows used in operating activities | | | | $ | (2,679,900) | | | | | $ | (2,681,749) | | | | | $ | 1,849 | | | | | | —% | | |
Net cash flows used in investing activities | | | | | (1,475,245) | | | | | | (1,025,637) | | | | | | (449,608) | | | | | | 44% | | |
Net cash flows provided by financing activities | | | | | 3,078,674 | | | | | | 3,515,306 | | | | | | (436,632) | | | | | | (12)% | | |
Net decrease in cash and cash equivalents | | | | $ | (1,076,471) | | | | | $ | (192,080) | | | | | $ | (884,391) | | | | | | | | |
| | | Nine Months Ended September 30, | | | Year Ended December 31, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2019 | | | 2018 | | ||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | |||||||||
Net loss | | | | $ | (3,058,540) | | | | | $ | (3,378,221) | | | | | $ | (4,727,050) | | | | | $ | (5,347,052) | | |
Income tax benefit | | | | | — | | | | | | (117,750) | | | | | | (157,000) | | | | | | (127,000) | | |
Change in fair value of derivative liability | | | | | 76,000 | | | | | | (725,000) | | | | | | (551,000) | | | | | | 946,000 | | |
Interest expense | | | | | 1,517,697 | | | | | | 1,209,857 | | | | | | 1,724,450 | | | | | | 1,214,983 | | |
Depreciation & amortization | | | | | 632,988 | | | | | | 475,801 | | | | | | 634,965 | | | | | | 469,173 | | |
Share-based compensation | | | | | 80,597 | | | | | | 339,863 | | | | | | 360,379 | | | | | | 113,921 | | |
Adjusted EBITDA | | | | $ | (751,258) | | | | | $ | (2,195,450) | | | | | $ | (2,715,256) | | | | | $ | (2,729,975) | | |
| | | Three Months Ended March 31, | | | Years Ended December 31, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (unaudited) | | | | | | | | | | | | | | |||||||||
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Income tax benefit | | | | | — | | | | | | — | | | | | | — | | | | | | (157,000) | | |
Change in fair value of derivative liability on convertible notes | | | | | 154,000 | | | | | | 605,000 | | | | | | 159,000 | | | | | | (551,000) | | |
Change in fair value of derivative liability on bridge notes and bridge notes, relates parties | | | | | 48,000 | | | | | | — | | | | | | — | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties | | | | | 2,750,171 | | | | | | — | | | | | | — | | | | | | — | | |
Gain on extinguishment of note payable | | | | | (788,156) | | | | | | — | | | | | | — | | | | | | — | | |
Interest expense | | | | | 853,147 | | | | | | 587,669 | | | | | | 2,096,795 | | | | | | 1,724,450 | | |
Depreciation & amortization | | | | | 246,359 | | | | | | 220,848 | | | | | | 819,687 | | | | | | 634,965 | | |
Share-based compensation | | | | | 22,036 | | | | | | 22,045 | | | | | | 92,866 | | | | | | 360,379 | | |
Adjusted EBITDA | | | | $ | (677,934) | | | | | $ | (202,417) | | | | | $ | (1,483,736) | | | | | $ | (2,715,256) | | |
| | | | | | | December 31, | | ||||||||||||||||||||||||||||||
| | September 30, 2020 | | 2019 | | 2018 | | | March 31, 2021 | | 2020 | | 2019 | | ||||||||||||||||||||||||
Americas | | | | 87.9% | | | | | 97.7% | | | | | 99.5% | | | | | | 77.3% | | | | | 92.28% | | | | | 97.7% | | | ||||||
Europe, Middle East, and Africa (“EMEA”) | | | | 3.8% | | | | | 0.2% | | | | | 0.4% | | | | | | 21.6% | | | | | 2.31% | | | | | 0.2% | | | ||||||
Asia Pacific (“APAC”) | | | | 8.3% | | | | | 2.1% | | | | | 0.1% | | | | | | 1.1% | | | | | 5.41% | | | | | 2.1% | | |
| | | | | | | December 31, | | ||||||||||||||||||||||||||||||
| | September 30, 2020 | | 2019 | | 2018 | | | March 31, 2021 | | 2020 | | 2019 | | ||||||||||||||||||||||||
Americas | | | | 94.2% | | | | | 77.5% | | | | | 97.6% | | | | | | 95.7% | | | | | 94.4% | | | | | 77.5% | | | ||||||
Europe, Middle East, and Africa (EMEA) | | | | 3.6% | | | | | 22.5% | | | | | 1.5% | | | | | | 4.3% | | | | | 1.8% | | | | | 22.5% | | | ||||||
Asia Pacific (APAC) | | | | 2.2% | | | | | 0.0% | | | | | 0.9% | | | | | | 0.0% | | | | | 3.8% | | | | | 0.0% | | |
| | As of December 31, | | | CAGR 2016-19 | | | As of September 30, | | | As of December 31, | | | CAGR 2016-20 | | As of March 31, 2021 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Totals | | 2019 | | 2018 | | 2017 | | 2016 | | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Totals (in thousands) | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | | | CAGR 2016-20 | | As of March 31, 2021 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inquiries | | | $ | 54,266 | | | | $ | 26,530 | | | | $ | 26,237 | | | | $ | 11,057 | | | | | 69.9% | | | | $ | 56,751 | | | | $ | 39,807 | | | | | $ | 76,765 | | | | $ | 54,266 | | | | $ | 26,530 | | | | $ | 26,236 | | | | $ | 11,057 | | | ||||||||||||||||||||||||
Quotes | | | $ | 36,569 | | | | $ | 17,851 | | | | $ | 16,464 | | | | $ | 6,763 | | | | | 75.5% | | | | $ | 49,805 | | | | $ | 24,245 | | | | | $ | 64,333 | | | | $ | 36,569 | | | | $ | 17,851 | | | | $ | 16,464 | | | | $ | 6,763 | | | | | 76% | | | | $ | 15,060 | | | ||||||||||||||
Purchase Orders | | | $ | 12,053 | | | | $ | 8,228 | | | | $ | 5,185 | | | | $ | 2,109 | | | | | 78.8% | | | | $ | 9,961 | | | | $ | 5,842 | | | | | $ | 14,850 | | | | $ | 12,065 | | | | $ | 8,228 | | | | $ | 5,185 | | | | $ | 2,109 | | | | | 63% | | | | $ | 5,514 | | | ||||||||||||||
Revenue | | | $ | 4,298 | | | | $ | 4,395 | | | | $ | 3,067 | | | | $ | 1,448 | | | | | 43.7% | | | | $ | 5,466 | | | | $ | 3,008 | | | | | $ | 8,184 | | | | $ | 4,298 | | | | $ | 4,395 | | | | $ | 3,067 | | | | $ | 1,448 | | | | | 53% | | | | $ | 2,964 | | |
| | As of December 31, | | | CAGR 2016-19 | | | As of September 30, | | | As of December 31, | | | CAGR 2016-20 | | As of March 31, 2021 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales Pipeline Stage — Averages (in thousands) | | 2019 | | 2018 | | 2017 | | 2016 | | 2020 | | 2019 | | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inquiries | | | $ | 42.1 | | | | $ | 23.2 | | | | $ | 17.8 | | | | $ | 18.8 | | | | | 30.9% | | | | $ | 54.1 | | | | $ | 40.4 | | | | | $ | 56.5 | | | | $ | 42.1 | | | | $ | 23.2 | | | | $ | 17.8 | | | | $ | 18.8 | | | | | 32% | | | | $ | 59.5 | | | ||||||||||||||
Quotes | | | $ | 47.1 | | | | $ | 34.1 | | | | $ | 20.3 | | | | $ | 16.5 | | | | | 41.8% | | | | $ | 79.9 | | | | $ | 41.4 | | | | | $ | 78.7 | | | | $ | 47.1 | | | | $ | 34.1 | | | | $ | 20.3 | | | | $ | 16.5 | | | | | 48% | | | | $ | 77.6 | | | ||||||||||||||
Purchase Orders | | | $ | 35.6 | | | | $ | 26.3 | | | | $ | 9.8 | | | | $ | 7.0 | | | | | 72.0% | | | | $ | 30.9 | | | | $ | 22.8 | | | | | $ | 33.8 | | | | $ | 35.5 | | | | $ | 26.3 | | | | $ | 9.8 | | | | $ | 7.0 | | | | | 48% | | | | $ | 53.5 | | |
| | As of December 31, | | | CAGR 2016-19 | | | As of September 30, | | | As of December 31, | | | CAGR 2016-20 | | As of March 31, 2021 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Selling Price | | 2019 | | 2018 | | 2017 | | 2016 | | 2020 | | 2019 | | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Specimen Shipped | | | $ | 329.18 | | | | $ | 163.98 | | | | $ | 95.46 | | | | $ | 35.48 | | | | | 110.1% | | | | $ | 314.31 | | | | $ | 324.73 | | | | | $ | 325.47 | | | | $ | 329.18 | | | | $ | 163.98 | | | | $ | 95.46 | | | | $ | 35.48 | | | | | 74% | | | | $ | 311.88 | | |
| | As of December 31, | | | CAGR 2016-19 | | | As of September 30, | | | As of December 31, | | | CAGR 2016-20 | | As of March 31, 2021 | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | 2016 | | 2020 | | 2019 | | | 2020 | | 2019 | | 2018 | | 2017 | | 2016 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative Number of Customer Organizations | | | | 234 | | | | | 176 | | | | | 140 | | | | | 69 | | | | | 50.2% | | | | | 308 | | | | | 212 | | | | | | 330 | | | | | 230 | | | | | 172 | | | | | 135 | | | | | 69 | | | | | 48% | | | | | 349 | | | ||||||||||||||
Number of Active Customer Organizations | | | | 110 | | | | | 99 | | | | | 108 | | | | | 56 | | | | | 25.2% | | | | | 162 | | | | | 102 | | | | | | 172 | | | | | 108 | | | | | 96 | | | | | 104 | | | | | 56 | | | | | 32% | | | | | 175 | | |
Name | | | Age | | | Position | | |||
Christopher Ianelli | | | | | | | | Chief Executive Officer, President, and Director | | |
Jill Mullan | | | | | 56 | | | | Chief Operating Officer, Secretary, Treasurer, and Director | |
Benjamin Bielak | | | | | 51 | | | | Chief Information Officer | |
Tracy Curley | | | | | 59 | | | | Chief Financial Officer | |
Andrew L. Ross | | | | | 72 | | | | Chairman of the Board | |
George “Bud” Scholl | | | | | 61 | | | | Director | |
Steven Gullans | | | | | 67 | | | | Director | |
John L. Brooks III | | | | | 69 | | | | Director Nominee | |
Margaret H. Lawrence | | | | | 45 | | | | Director Nominee | |
Name and Principal Position | | Year | | Salary ($) | | Bonus ($) | | Option awards ($)(1) | | All other compensation ($) | | Total ($) | | | Year | | Salary ($) | | Bonus ($) | | Option awards ($)(1) | | All other compensation ($) | | Total ($) | | ||||||||||||||||||||||||||||||||||||||||||||||||
Christopher Ianelli, | | | | 2019 | | | | $ | 250,000 | | | | $ | — | | | | $ | 297,587 | | | | $ | — | | | | $ | 547,587 | | | | | | 2020 | | | | $ | 250,000 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 250,000 | | | ||||||||||||
Chief Executive, President and Director | | | | 2018 | | | | $ | 220,000 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 220,000 | | | | | | 2019 | | | | $ | 250,000 | | | | $ | — | | | | $ | 297,587 | | | | $ | — | | | | $ | 547,587 | | | ||||||||||||
Jill Mullan, | | | | 2019 | | | | $ | 230,000 | | | | $ | — | | | | $ | 397,617 | | | | $ | — | | | | $ | 627,617 | | | | | | 2020 | | | | $ | 230,000 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 230,000 | | | ||||||||||||
Chief Operating Officer, Secretary and Treasurer | | | | 2018 | | | | $ | 220,000 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 220,000 | | | | | | 2019 | | | | $ | 230,000 | | | | $ | — | | | | $ | 397,671 | | | | $ | — | | | | $ | 627,617 | | | ||||||||||||
Benjamin Bielak | | | | 2019 | | | | $ | 220,000 | | | | $ | — | | | | $ | 25,500 | | | | $ | — | | | | $ | 245,500 | | | | | | 2020 | | | | $ | 220,000 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 220,000 | | | ||||||||||||
Chief Information Officer | | | | 2018 | | | | $ | 205,000 | | | | $ | — | | | | $ | 202,800 | | | | $ | — | | | | $ | 407,800 | | | | | | 2019 | | | | $ | 220,000 | | | | $ | — | | | | $ | 25,500 | | | | $ | — | | | | $ | 245,500 | | | ||||||||||||
Tracy Curley | | | | 2019 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | | | 2020 | | | | $ | 105,600 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | 105,600 | | | ||||||||||||
Chief Financial Officer | | | | 2018 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | | | 2019 | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | | | $ | — | | |
Plan | | Number of Shares Issued | | Number of Shares Reserved for Issuance | | Number of Shares underlying Outstanding Options or Warrants | | Number of Shares Remaining Available for Future Issuance | | | Number of Shares Issued | | Number of Shares Reserved for Issuance | | Number of Shares underlying Outstanding Options or Warrants | | Number of Shares Remaining Available for Future Issuance | | ||||||||||||||||||||||||||||||||
2010 Stock Incentive Plan | | | | 868,427 | | | | | 1,500,000 | | | | | 631,573 | | | | | — | | | | | | 156,603 | | | | | 270,513 | | | | | 113,898 | | | | | — | | | ||||||||
2013 Stock Incentive Plan | | | | 329,922 | | | | | 1,713,570 | | | | | 792,468 | | | | | 591,180 | | | | | | 59,491 | | | | | 309,029 | | | | | 137,949 | | | | | 111,589 | | |
| | Option Awards | | | Option Awards | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Name | | Number of securities underlying unexercised options (#) exercisable | | Number of securities underlying unexercised options (#) unexercisable | | Equity incentive plan awards; Number of securities underlying unexercised unearned options (#) | | Option exercise price ($) | | Option expiration date | | | Number of securities underlying unexercised options (#) exercisable | | Number of securities underlying unexercised options (#) unexercisable | | Equity incentive plan awards; Number of securities underlying unexercised unearned options (#) | | Option exercise price ($) | | Option expiration date | | ||||||||||||||||||||||||||||||||||
Christopher Ianelli | | | | 9,375 | | | | | 15,625 | | | | | — | | | | $ | 1.02 | | | January 31, 2029 | | | | | 2,254 | | | | | 2,254 | | | | | — | | | | $ | 1.00 | | | January 31, 2029 | | ||||||||||
Christopher Ianelli | | | | 266,752 | | | | | — | | | | | — | | | | $ | 1.02 | | | July 12, 2029 | | | | | 48,106 | | | | | — | | | | | — | | | | $ | 1.00 | | | July 12, 2029 | | ||||||||||
Jill Mullan | | | | 107,000 | | | | | — | | | | | — | | | | $ | 1.08 | | | June 29, 2026 | | | | | 19,296 | | | | | — | | | | | — | | | | $ | 1.00 | | | June 29, 2026 | | ||||||||||
Jill Mullan | | | | 9,375 | | | | | 15,625 | | | | | — | | | | $ | 1.02 | | | January 31, 2029 | | | | | 2,254 | | | | | 2,254 | | | | | — | | | | $ | 1.00 | | | January 31, 2029 | | ||||||||||
Jill Mullan | | | | 364,821 | | | | | — | | | | | — | | | | $ | 1.02 | | | July 12, 2029 | | | | | 65,792 | | | | | — | | | | | — | | | | $ | 1.00 | | | July 12, 2029 | | ||||||||||
Benjamin Bielak | | | | 65,000 | | | | | 65,000 | | | | | — | | | | $ | 1.56 | | | June 14, 2028 | | | | | 14,653 | | | | | 8,791 | | | | | — | | | | $ | 1.00 | | | June 14, 2028 | | ||||||||||
Benjamin Bielak | | | | 9,375 | | | | | 15,625 | | | | | — | | | | $ | 1.02 | | | January 31, 2029 | | | | | 2,254 | | | | | 2,254 | | | | | — | | | | $ | 1.00 | | | January 31, 2029 | |
Name and Principal Position | | | Year | | | Salary ($) | | | Bonus ($) | | | Option awards ($)(1) | | | All other compensation ($) | | | Total ($) | | ||||||||||||||||||
Andrew Ross, | | | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Chairman of the Board | | | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Bud Scholl | | | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Director | | | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Steven Gullans | | | | | 2020 | | | | | $ | — | | | | | $ | — | | | | | $ | 51,750 | | | | | $ | — | | | | | $ | — | | |
Director | | | | | 2019 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | Shares beneficially owned prior to the offering | | Shares beneficially owned after the offering | | | Shares beneficially owned prior to the offering | | Shares beneficially owned after the offering | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name of beneficial owner | | Common stock | | Options exercisable within 60 days | | Aggregate number of shares beneficially owned | | % | | Assuming no exercise of option to purchase additional shares | | % | | Assuming exercise of option to purchase additional shares | | % | | | Common stock | | Options exercisable within 60 days | | Aggregate number of shares beneficially owned | | % | | Assuming no exercise of option to purchase additional shares | | % | | Assuming exercise of option to purchase additional shares | | % | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
5% or more stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Anna-Maria & Stephen Kellen Foundation(1) | | | | 1,091,187(2) | | | | | — | | | | | 1,091,187 | | | | | 8.7% | | | | | | | | | | | | | | 196,785(2) | | | | | — | | | | | 196,785 | | | | | 8.7% | | | | | 566,154(7) | | | | | 9.0% | | | | | 566,154(7) | | | | | 8.6% | | | ||||||||||||||||
OBF Investments | | | | 1,388,784(3) | | | | | — | | | | | 1,388,784 | | | | | 11.1% | | | | | | | | | | | | | | 250,456(3) | | | | | — | | | | | 250,456 | | | | | 11.1% | | | | | 766,169(8) | | | | | 12.2% | | | | | 766,169(8) | | | | | 11.6% | | | ||||||||||||||||
Named executive officers and directors: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Andrew L. Ross | | | | 4,740,153(4) | | | | | — | | | | | 4,740,153 | | | | | 37.9% | | | | | | | | | | | | | | 854,847(4) | | | | | — | | | | | 854,847 | | | | | 38.0% | | | | | 1,257,938(9) | | | | | 20.1% | | | | | 1,257,938(9) | | | | | 19.1% | | | ||||||||||||||||
Christopher Ianelli | | | | 1,903,933(5) | | | | | 277,689 | | | | | 2,181,622 | | | | | 17.0% | | | | | | | | | | | | | | 343,357(5) | | | | | 50,642 | | | | | 393,999 | | | | | 17.1% | | | | | 393,999 | | | | | 6.2% | | | | | 393,999 | | | | | 5.9% | | | ||||||||||||||||
Jill Mullan | | | | 274,859(6) | | | | | 482,758 | | | | | 757,617 | | | | | 5.8% | | | | | | | | | | | | | | 49,566(6) | | | | | 87,625 | | | | | 137,191 | | | | | 5.9% | | | | | 204,750(10) | | | | | 3.2% | | | | | 204,750(10) | | | | | 3.1% | | | ||||||||||||||||
Steven Gullans | | | | — | | | | | — | | | | | — | | | | | — | | | | | | | | | | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | ||||||||||||||||
All current directors and executive officers as a group (4 persons) | | | | 6,918,945 | | | | | 760,447 | | | | | 7,679,392 | | | | | 57.8% | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
John L. Brooks III | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||||||||||||||||||
Margaret H. Lawrence | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||||||||||||||||||
All current directors and executive officers as a group (6 persons) | | | | 1,247,770 | | | | | 138,267 | | | | | 1,386,037 | | | | | 58.0% | | | | | 1,856,687 | | | | | 29.0% | | | | | 1,856,687 | | | | | 27.6% | | |
Underwriters | | | Number of Shares | | ||||||
ThinkEquity, a division of Fordham Financial Management, Inc. | | | | |||||||
| | | | | | | | |||
Total | | | | | 2,222,222 | | |
| | | | | | | | | Total | | |||||||||
| | | Per Share | | | Without Over-Allotment | | | With Over-Allotment | | |||||||||
Public offering price | | | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discount (7.5%) | | | | $ | | | | | $ | | | | | $ | | | |||
Proceeds, before expenses, to us | | | | $ | | | | | $ | | | | | $ | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | | ||
| | | | | | |
| | December 31, 2019 | | December 31, 2018 | | | December 31, 2020 | | December 31, 2019 | | ||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | ||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | ||||
Cash | | | $ | 53,893 | | | | $ | 1,130,364 | | | | | $ | 695,909 | | | | $ | 53,893 | | | ||||
Accounts receivable | | | | 833,580 | | | | | 1,025,833 | | | |||||||||||||||
Accounts receivable – unbilled | | | | 454,576 | | | | | — | | | |||||||||||||||
Inventory | | | | 54,908 | | | | | 47,287 | | | |||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $108,096 and $0 at December 31, 2020 and 2019, respectively | | | | 1,526,392 | | | | | 833,580 | | | |||||||||||||||
Accounts receivable-unbilled | | | | 652,761 | | | | | 454,576 | | | |||||||||||||||
Prepaid expenses and other current assets | | | | 79,227 | | | | | 100,018 | | | | | | 417,929 | | | | | 134,135 | | | ||||
Tax credit receivable, current portion | | | | 104,478 | | | | | — | | | | | | 179,376 | | | | | 104,478 | | | ||||
Total current assets | | | | 1,580,662 | | | | | 2,303,502 | | | | | | 3,472,367 | | | | | 1,580,662 | | | ||||
Property and equipment, net | | | | 119,921 | | | | | 149,098 | | | | | | 75,589 | | | | | 119,921 | | | ||||
Internally developed software, net | | | | 2,306,882 | | | | | 1,437,425 | | | | | | 2,634,139 | | | | | 2,306,882 | | | ||||
Tax credit receivable, net of current portion | | | | 179,522 | | | | | 127,000 | | | | | | — | | | | | 179,522 | | | ||||
Security deposits | | | | 27,601 | | | | | 27,601 | | | | | | 27,601 | | | | | 27,601 | | | ||||
Total assets | | | $ | 4,214,588 | | | | $ | 4,044,626 | | | | | $ | 6,209,696 | | | | $ | 4,214,588 | | | ||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | | | | | ||||
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Accounts payable | | | $ | 737,794 | | | | $ | 696,912 | | | | | $ | 1,792,432 | | | | $ | 737,794 | | | ||||
Accrued expenses | | | | 471,348 | | | | | 291,759 | | | | | | 810,910 | | | | | 471,348 | | | ||||
Accrued interest | | | | 1,745,515 | | | | | 573,156 | | | | | | 3,696,944 | | | | | 1,745,515 | | | ||||
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | 5,350,278 | | | | | 4,801,189 | | | | | | 5,490,811 | | | | | 5,350,278 | | | ||||
Derivative liability for embedded conversion features | | | | 2,214,000 | | | | | 2,765,000 | | | | | | 2,373,000 | | | | | 2,214,000 | | | ||||
Bridge notes payable, net of debt issuance costs | | | | 3,586,326 | | | | | 1,117,286 | | | | | | 4,589,228 | | | | | 3,586,326 | | | ||||
Bridge notes payable, related parties | | | | 1,655,000 | | | | | 1,050,000 | | | | | | 1,905,000 | | | | | 1,655,000 | | | ||||
Note payable, current portion | | | | 604,109 | | | | | — | | | |||||||||||||||
Deferred revenue | | | | 873,254 | | | | | — | | | |||||||||||||||
Total current liabilities | | | | 15,760,261 | | | | | 11,295,302 | | | | | | 22,135,688 | | | | | 15,760,261 | | | ||||
Note payable, net of current portion | | | | 178,899 | | | | | — | | | |||||||||||||||
Total liabilities | | | | 22,314,587 | | | | | 15,760,261 | | | |||||||||||||||
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | ||||
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 3,174,363 shares issued and outstanding at December 31, 2019 and 2018 (preference in liquidation of $10,122,925) | | | | 7,999,997 | | | | | 7,999,997 | | | |||||||||||||||
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 556,540 issued and outstanding at December 31, 2019 and 2018 (preference in liquidation of $746,415) | | | | 561,041 | | | | | 561,041 | | | |||||||||||||||
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, issued and outstanding at December 31, 2019 and 2018 (preference in liquidation of $3,778,652) | | | | 2,612,038 | | | | | 2,612,038 | | | |||||||||||||||
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $10,604,240) | | | | 7,999,997 | | | | | 7,999,997 | | | |||||||||||||||
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $780,170) | | | | 561,041 | | | | | 561,041 | | | |||||||||||||||
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at December 31, 2020 and 2019 (preference in liquidation of $3,935,804) | | | | 2,612,038 | | | | | 2,612,038 | | | |||||||||||||||
Total convertible preferred stock | | | | 11,173,076 | | | | | 11,173,076 | | | | | | 11,173,076 | | | | | 11,173,076 | | | ||||
Stockholders’ Deficit: | | | | | | | | | | | | | | | | | | | | | | | ||||
Common stock, $0.0001 par value, 16,000,000 shares authorized, 5,363,365 and 5,360,240 issued and outstanding at December 31, 2019 and 2018 | | | | 537 | | | | | 537 | | | |||||||||||||||
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at December 31, 2020 and 2019 | | | | 94 | | | | | 94 | | | |||||||||||||||
Additional paid-in capital | | | | 1,686,389 | | | | | 1,322,336 | | | | | | 1,779,698 | | | | | 1,686,832 | | | ||||
Treasury stock, 171,908 shares at December 31, 2019 and 2018, at cost | | | | (172) | | | | | (172) | | | |||||||||||||||
Treasury stock, 31,000 shares at December 31, 2020 and 2019, at cost | | | | (172) | | | | | (172) | | | |||||||||||||||
Accumulated deficit | | | | (24,405,503) | | | | | (19,746,453) | | | | | | (29,057,587) | | | | | (24,405,503) | | | ||||
Total stockholders’ deficit | | | | (22,718,749) | | | | | (18,423,752) | | | | | | (27,277,967) | | | | | (22,718,749) | | | ||||
Total liabilities, convertible preferred stock and stockholders’ deficit | | | $ | 4,214,588 | | | | $ | 4,044,626 | | | | | $ | 6,209,696 | | | | $ | 4,214,588 | | |
| | Years Ended December 31, | | | Years Ended December 31, | | ||||||||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Revenue | | | $ | 4,298,350 | | | | $ | 4,394,818 | | | | | $ | 8,184,106 | | | | $ | 4,298,350 | | | ||||
Operating expenses: | | | | | | | | | | | | | | | | | | ��� | | | | | | |||
Cost of revenue | | | | 2,127,900 | | | | | 2,362,495 | | | | | | 3,585,477 | | | | | 2,127,900 | | | ||||
Technology | | | | 993,329 | | | | | 1,210,079 | | | | | | 1,426,473 | | | | | 993,329 | | | ||||
Sales and marketing | | | | 1,413,059 | | | | | 1,313,881 | | | | | | 1,775,347 | | | | | 1,413,059 | | | ||||
Supply development | | | | 792,778 | | | | | 673,439 | | | | | | 495,967 | | | | | 792,778 | | | ||||
Fulfillment | | | | 914,633 | | | | | 736,799 | | | | | | 853,450 | | | | | 914,633 | | | ||||
General and administrative | | | | 1,936,740 | | | | | 1,454,426 | | | | | | 2,453,772 | | | | | 1,936,740 | | | ||||
Total operating expenses | | | | 8,178,439 | | | | | 7,751,119 | | | | | | 10,590,486 | | | | | 8,178,439 | | | ||||
Loss from operations | | | | (3,880,089) | | | | | (3,356,301) | | | | | | (2,406,380) | | | | | (3,880,089) | | | ||||
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | ||||
Interest expense | | | | (1,724,450) | | | | | (1,214,983) | | | | | | (2,096,795) | | | | | (1,724,450) | | | ||||
Change in fair value of derivative liability | | | | 551,000 | | | | | (946,000) | | | | | | (159,000) | | | | | 551,000 | | | ||||
Other income | | | | 168,859 | | | | | 41,733 | | | | | | 9,654 | | | | | 168,859 | | | ||||
Interest income | | | | 630 | | | | | 1,499 | | | | | | 437 | | | | | 630 | | | ||||
Other expense, net | | | | (1,003,961) | | | | | (2,117,751) | | | | | | (2,245,704) | | | | | (1,003,961) | | | ||||
Net loss before benefit from income taxes | | | | (4,884,050) | | | | | (5,474,052) | | | | | | (4,652,084) | | | | | (4,884,050) | | | ||||
Benefit from income taxes | | | | 157,000 | | | | | 127,000 | | | | | | — | | | | | 157,000 | | | ||||
Net loss | | | $ | (4,727,050) | | | | $ | (5,347,052) | | | | | $ | (4,652,084) | | | | $ | (4,727,050) | | | ||||
Net loss per share | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | $ | (0.91) | | | | $ | (1.03) | | | | | $ | (4.97) | | | | $ | (5.05) | | | ||||
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | | 5,190,810 | | | | | 5,196,485 | | | | | | 936,213 | | | | | 936,096 | | |
| | | Series B Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A Convertible Preferred Stock | | | | Common Stock | | | Treasury Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018 | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,359,115 | | | | | $ | 537 | | | | | | 130,954 | | | | | $ | (131) | | | | | $ | 1,207,200 | | | | | $ | (14,399,401) | | | | | $ | (13,191,795) | | |
Issuance of common stock through exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 1,125 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,215 | | | | | | — | | | | | | 1,215 | | |
Repurchase of restricted common stock | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 40,954 | | | | | | (41) | | | | | | — | | | | | | — | | | | | | (41) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 113,921 | | | | | | — | | | | | | 113,921 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,347,052) | | | | | | (5,347,052) | | |
Balance at December 31, 2018 | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,360,240 | | | | | $ | 537 | | | | | | 171,908 | | | | | $ | (172) | | | | | $ | 1,322,336 | | | | | $ | (19,746,453) | | | | | $ | (18,423,752) | | |
Cumulative effect from adoption of ASC 606 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 68,000 | | | | | | 68,000 | | |
Issuance of common stock through exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 3,125 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,674 | | | | | | — | | | | | | 3,674 | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 360,379 | | | | | | — | | | | | | 360,379 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,727,050) | | | | | | (4,727,050) | | |
Balance at December 31, 2019 | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,363,365 | | | | | $ | 537 | | | | | | 171,908 | | | | | $ | (172) | | | | | $ | 1,686,389 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
| | | Series B Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A Convertible Preferred Stock | | | | Common Stock | | | Treasury Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2019 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,322,779 | | | | | $ | (19,746,453) | | | | | $ | (18,423,752) | | |
Cumulative effect from adoption of ASC 606 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 68,000 | | | | | | 68,000 | | |
Issuance of common stock through exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 562 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,674 | | | | | | — | | | | | | 3,674 | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 360,379 | | | | | | — | | | | | | 360,379 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,727,050) | | | | | | (4,727,050) | | |
Balance at December 31, 2019 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 92,866 | | | | | | — | | | | | | 92,866 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,652,084) | | | | | | (4,652,084) | | |
Balance at December 31, 2020 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
| | | Years Ended December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss | | | | $ | (4,727,050) | | | | | $ | (5,347,052) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation | | | | | 360,379 | | | | | | 113,921 | | |
Amortization of internally developed software | | | | | 577,605 | | | | | | 438,007 | | |
Depreciation and amortization of property and equipment | | | | | 57,360 | | | | | | 31,166 | | |
Amortization of discount and debt issuance costs on convertible notes | | | | | 551,993 | | | | | | 767,716 | | |
Change in fair value of derivative liability | | | | | (551,000) | | | | | | 946,000 | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 192,253 | | | | | | (393,192) | | |
Accounts receivable – unbilled | | | | | (305,576) | | | | | | — | | |
Inventory | | | | | (7,621) | | | | | | (12,663) | | |
Prepaid expenses and other current assets | | | | | 20,791 | | | | | | 17,212 | | |
Tax credit receivable | | | | | (157,000) | | | | | | (127,000) | | |
Accounts payable | | | | | 40,882 | | | | | | 584,051 | | |
Accrued expenses | | | | | 94,725 | | | | | | (147,178) | | |
Accrued interest | | | | | 1,172,359 | | | | | | 447,263 | | |
Net cash used in operating activities | | | | | (2,679,900) | | | | | | (2,681,749) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (28,183) | | | | | | (55,958) | | |
Capitalization of internally developed software | | | | | (1,447,062) | | | | | | (969,679) | | |
Net cash used in investing activities | | | | | (1,475,245) | | | | | | (1,025,637) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of convertible notes payable | | | | | — | | | | | | 1,350,000 | | |
Proceeds from issuance of bridge notes payable | | | | | 3,075,000 | | | | | | 2,175,000 | | |
Payment of debt issuance costs | | | | | — | | | | | | (10,868) | | |
Proceeds from exercise of stock options | | | | | 3,674 | | | | | | 1,215 | | |
Repurchase of restricted common stock | | | | | — | | | | | | (41) | | |
Net cash provided by financing activities | | | | | 3,078,674 | | | | | | 3,515,306 | | |
Net decrease in cash | | | | | (1,076,471) | | | | | | (192,080) | | |
Cash at beginning of period | | | | | 1,130,364 | | | | | | 1,322,444 | | |
Cash at end of period | | | | $ | 53,893 | | | | | $ | 1,130,364 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | — | | | | | $ | — | | |
Income taxes paid | | | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Debt issuance cost included in accrued expenses | | | | $ | (3,862) | | | | | $ | — | | |
Derivative liability for embedded conversion features on convertible notes issued | | | | $ | — | | | | | $ | 314,000 | | |
| | | Years Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss | | | | $ | (4,652,084) | | | | | $ | (4,727,050) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation | | | | | 92,866 | | | | | | 360,379 | | |
Amortization of internally developed software | | | | | 774,929 | | | | | | 577,605 | | |
Depreciation and amortization of property and equipment | | | | | 44,758 | | | | | | 57,360 | | |
Bad debt expense | | | | | 108,096 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes | | | | | 143,435 | | | | | | 551,993 | | |
Change in fair value of derivative liability | | | | | 159,000 | | | | | | (551,000) | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (800,908) | | | | | | 192,253 | | |
Accounts receivable-unbilled | | | | | (198,185) | | | | | | (305,576) | | |
Prepaid expenses and other current assets | | | | | (226,374) | | | | | | 13,170 | | |
Tax credit receivable | | | | | 104,624 | | | | | | (157,000) | | |
Accounts payable | | | | | 1,054,638 | | | | | | 40,882 | | |
Accrued expenses | | | | | 282,142 | | | | | | 94,725 | | |
Accrued interest | | | | | 1,951,429 | | | | | | 1,172,359 | | |
Deferred revenue | | | | | 873,254 | | | | | | — | | |
Net cash used in operating activities | | | | | (288,380) | | | | | | (2,679,900) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (426) | | | | | | (28,183) | | |
Capitalization of internally developed software | | | | | (1,102,186) | | | | | | (1,447,062) | | |
Net cash used in investing activities | | | | | (1,102,612) | | | | | | (1,475,245) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable | | | | | 1,250,000 | | | | | | 3,075,000 | | |
Proceeds from issuance of note payable | | | | | 783,008 | | | | | | — | | |
Proceeds from exercise of stock options | | | | | — | | | | | | 3,674 | | |
Net cash provided by financing activities | | | | | 2,033,008 | | | | | | 3,078,674 | | |
Net increase (decrease) in cash | | | | | 642,016 | | | | | | (1,076,471) | | |
Cash at beginning of period | | | | | 53,893 | | | | | | 1,130,364 | | |
Cash at end of period | | | | $ | 695,909 | | | | | $ | 53,893 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | — | | | | | $ | — | | |
Income taxes paid | | | | $ | — | | | | | $ | — | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Debt issuance costs included in accrued expenses | | | | $ | — | | | | | $ | (3,862) | | |
Deferred offering costs included in accrued expenses | | | | $ | (57,420) | | | | | $ | — | | |
| | | Balance at December 31, 2018 | | | Adjustments | | | Balance at January 1, 2019 | | |||||||||
Accounts receivable – unbilled | | | | $ | — | | | | | $ | 149,000 | | | | | $ | 149,000 | | |
Accrued expenses | | | | $ | 291,759 | | | | | $ | 81,000 | | | | | $ | 372,759 | | |
Accumulated deficit | | | | $ | (19,746,453) | | | | | $ | 68,000 | | | | | $ | (19,678,453) | | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Specimens – contracts with customers | | | $ | 4,215,002 | | | | $ | 4,304,376 | | | | | $ | 8,086,324 | | | | $ | 4,215,002 | | | ||||
Shipping and other | | | | 83,348 | | | | | 90,442 | | | | | | 97,782 | | | | | 83,348 | | | ||||
Revenue | | | $ | 4,298,350 | | | | $ | 4,394,818 | | | | | $ | 8,184,106 | | | | $ | 4,298,350 | | |
Asset category | | | Estimated Useful Life | |
Website | | | 3 years | |
Computer equipment and purchased software | | | 5 years | |
Equipment | | | 5 years | |
Furniture and fixtures | | | 5 years | |
Leasehold improvements | | | Shorter of useful life of asset or lease term | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Shares issuable upon conversion of preferred stock | | | | 7,158,774 | | | | | 7,158,774 | | | | | | 1,291,012 | | | | | 1,291,012 | | | ||||
Shares issuable upon exercise of stock options | | | | 1,247,198 | | | | | 503,656 | | | | | | 251,847 | | | | | 224,884 | | | ||||
Shares issuable upon exercise of stock warrants | | | | 129,254 | | | | | 129,254 | | | |||||||||||||||
Shares issuable upon exercise of warrants to purchase common stock | | | | 23,309 | | | | | 23,309 | | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Website | | | $ | 105,376 | | | | $ | 105,376 | | | | | $ | 105,376 | | | | $ | 105,376 | | | ||||
Computer equipment and purchased software | | | | 84,481 | | | | | 56,298 | | | | | | 84,589 | | | | | 84,481 | | | ||||
Equipment | | | | 35,134 | | | | | 35,134 | | | | | | 35,449 | | | | | 35,134 | | | ||||
Furniture and fixtures | | | | 87,184 | | | | | 87,184 | | | | | | 87,184 | | | | | 87,184 | | | ||||
Leasehold improvements | | | | 24,935 | | | | | 24,935 | | | | | | 24,935 | | | | | 24,935 | | | ||||
Total property and equipment | | | | 337,110 | | | | | 308,927 | | | | | | 337,533 | | | | | 337,110 | | | ||||
Accumulated depreciation | | | | (217,189) | | | | | (159,829) | | | | | | (261,944) | | | | | (217,189) | | | ||||
Total property and equipment, net | | | $ | 119,921 | | | | $ | 149,098 | | | | | $ | 75,589 | | | | $ | 119,921 | | |
| | | Fair value at December 31, 2019 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
|
| | | Fair value at December 31, 2018 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,765,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,765,000 | | |
Total liabilities | | | | $ | 2,765,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,765,000 | | |
| | | Fair value at December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | | Fair value at December 31, 2019 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Balance, beginning of period | | | $ | 2,765,000 | | | | $ | 1,505,000 | | | | | $ | 2,214,000 | | | | $ | 2,765,000 | | | ||||
Derivative liability for embedded conversion features on Convertible Notes | | | | — | | | | | 314,000 | | | |||||||||||||||
(Gain) loss included in earnings | | | | (551,000) | | | | | 946,000 | | | |||||||||||||||
Loss (gain) included in earnings | | | | 159,000 | | | | | (551,000) | | | |||||||||||||||
Balance, end of period | | | $ | 2,214,000 | | | | $ | 2,765,000 | | | | | $ | 2,373,000 | | | | $ | 2,214,000 | | |
Years Ended December 31, | | Operating Leases | | | Operating Leases | | ||||||||
2020 | | | $ | 162,597 | | | ||||||||
2021 | | | | 161,062 | | | | | $ | 161,062 | | | ||
2022 | | | | 163,158 | | | | | | 163,158 | | | ||
2023 | | | | 165,254 | | | | | | 165,254 | | | ||
2024 | | | | 27,601 | | | | | | 27,601 | | | ||
Total | | | $ | 679,672 | | | | | $ | 517,075 | | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||
Assumptions: | | | | | | | | | | | ||||
Risk-free interest rate | | 1.59% – 2.58% | | 2.33% – 3.13% | | | 0.30% – 1.41% | | 1.59% – 2.58% | | ||||
Expected term (in years) | | 5.00 – 6.14 | | 4.83 – 9.08 | | | 5.32 – 6.14 | | 5.00 – 6.14 | | ||||
Expected volatility | | 41.00% – 43.92% | | 39.74% – 43.17% | | | 43.11% – 50.14% | | 41.00% – 43.92% | | ||||
Expected dividend yield | | —% | | —% | | | —% | | —% | |
| | Options Outstanding | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term in Years | | | Options Outstanding | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term in Years | | ||||||||||||||||||||||||
Balance at January 1, 2018 | | | | 371,343 | | | | $ | 1.14 | | | | | 8.63 | | | ||||||||||||||||||||||
Granted | | | | 247,250 | | | | | 1.49 | | | | | | | | ||||||||||||||||||||||
Exercised | | | | (1,125) | | | | | 1.08 | | | | | | | | ||||||||||||||||||||||
Cancelled/forfeited | | | | (113,812) | | | | | 1.36 | | | | | | | | ||||||||||||||||||||||
Balance at December 31, 2018 | | | | 503,656 | | | | $ | 1.27 | | | | | 6.92 | | | ||||||||||||||||||||||
Balance at January 1, 2019 | | | | 90,799 | | | | $ | 2.57 | | | | | 8.78 | | | ||||||||||||||||||||||
Granted | | | | 898,523 | | | | | 1.02 | | | | | | | | | | | 162,016 | | | | $ | 1.13 | | | | | | | | ||||||
Exercised | | | | (3,125) | | | | | 1.18 | | | | | | | | | | | (562) | | | | $ | 6.52 | | | | | | | | ||||||
Cancelled/forfeited | | | | (151,856) | | | | | 1.10 | | | | | | | | | | | (27,369) | | | | $ | 6.09 | | | | | | | | ||||||
Balance at December 31, 2019 | | | | 1,247,198 | | | | $ | 1.10 | | | | | 8.78 | | | | | | 224,884 | | | | $ | 1.08 | | | | | 8.78 | | | ||||||
Options exercisable at December 31, 2019 | | | | 872,519 | | | | $ | 1.08 | | | | | 8.72 | | | ||||||||||||||||||||||
Granted | | | | 43,259 | | | | $ | 1.00 | | | | | | | | ||||||||||||||||||||||
Exercised | | | | — | | | | $ | 1.00 | | | | | | | | ||||||||||||||||||||||
Cancelled/forfeited | | | | (16,296) | | | | $ | 4.20 | | | | | | | | ||||||||||||||||||||||
Balance at December 31, 2020 | | | | 251,847 | | | | $ | 1.00 | | | | | 8.06 | | | ||||||||||||||||||||||
Options exercisable at December 31, 2020 | | | | 180,716 | | | | $ | 1.00 | | | | | 7.85 | | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Deferred tax assets: | | | | | | | | | | | | | | | | | | | | | | | ||||
Operating loss carryforwards | | | $ | 5,600,000 | | | | $ | 4,600,000 | | | | | $ | 6,600,000 | | | | $ | 5,600,000 | | | ||||
Other | | | | 1,000,000 | | | | | 800,000 | | | | | | 700,000 | | | | | 1,000,000 | | | ||||
Total deferred tax assets | | | | 6,600,000 | | | | | 5,400,000 | | | | | | 7,300,000 | | | | | 6,600,000 | | | ||||
Deferred tax liability: | | | | | | | | | | | | | | | | | | | | | | | ||||
Intangibles | | | | (150,000) | | | | | (70,000) | | | | | | (250,000) | | | | | (150,000) | | | ||||
Total deferred tax liabilities | | | | (150,000) | | | | | (70,000) | | | | | | (250,000) | | | | | (150,000) | | | ||||
Net deferred tax assets before valuation allowance | | | | 6,450,000 | | | | | 5,330,000 | | | | | | 7,050,000 | | | | | 6,450,000 | | | ||||
Valuation allowance | | | | (6,450,000) | | | | | (5,330,000) | | | | | | (7,050,000) | | | | | (6,450,000) | | | ||||
Net deferred tax asset | | | $ | — | | | | $ | — | | | | | $ | — | | | | $ | — | | |
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
Reconciliation to statutory rates | | | | | | | | | | | | | | | | | | | | | | | ||||
Expected federal income taxes benefit at statutory rates | | | | (21)% | | | | | (21)% | | | | | | (21)% | | | | | (21)% | | | ||||
Expected state tax benefit at statutory rates, net of federal benefit | | | | (8) | | | | | (8) | | | | | | (8) | | | | | (8) | | | ||||
Change in valuation allowance | | | | 29 | | | | | 29 | | | | | | 29 | | | | | 29 | | | ||||
Income tax expense (benefit) | | | | —% | | | | | —% | | | | | | —% | | | | | —% | | |
| | | September 30, 2020 | | | December 31, 2019 | | ||||||
| | | (unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash | | | | $ | 957,246 | | | | | $ | 53,893 | | |
Accounts receivable | | | | | 1,758,407 | | | | | | 833,580 | | |
Accounts receivable – unbilled | | | | | 323,763 | | | | | | 454,576 | | |
Inventory | | | | | 26,734 | | | | | | 54,908 | | |
Prepaid expenses and other current assets | | | | | 114,371 | | | | | | 79,227 | | |
Tax credit receivable, current portion | | | | | 179,376 | | | | | | 104,478 | | |
Total current assets | | | | | 3,359,897 | | | | | | 1,580,662 | | |
Property and equipment, net | | | | | 87,364 | | | | | | 119,921 | | |
Internally developed software, net | | | | | 2,572,378 | | | | | | 2,306,882 | | |
Tax credit receivable, net of current portion | | | | | — | | | | | | 179,522 | | |
Security deposits | | | | | 27,601 | | | | | | 27,601 | | |
Total assets | | | | $ | 6,047,240 | | | | | $ | 4,214,588 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,212,058 | | | | | $ | 737,794 | | |
Accrued expenses | | | | | 600,992 | | | | | | 471,348 | | |
Accrued interest | | | | | 3,119,654 | | | | | | 1,745,515 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | | 5,489,728 | | | | | | 5,350,278 | | |
Derivative liability for embedded conversion features | | | | | 2,290,000 | | | | | | 2,214,000 | | |
Bridge notes payable, net of debt issuance costs | | | | | 4,588,504 | | | | | | 3,586,326 | | |
Bridge notes payable, related parties | | | | | 1,905,000 | | | | | | 1,655,000 | | |
Note payable, current portion | | | | | 473,239 | | | | | | — | | |
Deferred revenue | | | | | 581,912 | | | | | | — | | |
Total current liabilities | | | | | 20,261,087 | | | | | | 15,760,261 | | |
Note payable, net of current portion | | | | | 309,769 | | | | | | — | | |
Total liabilities | | | | | 20,570,856 | | | | | | 15,760,261 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 3,174,363 shares issued and outstanding at September 30, 2020 and December 31, 2019 (preference in liquidation of $10,483,253) | | | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,540 shares authorized, issued and outstanding at September 30, 2020 and December 31, 2019 (preference in liquidation of $771,685) | | | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, issued and outstanding at September 30, 2020 and December 31, 2019 (preference in liquidation of $3,896,301) | | | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock | | | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 5,363,365 issued and outstanding at September 30, 2020 and December 31, 2019 | | | | | 537 | | | | | | 537 | | |
Additional paid-in capital | | | | | 1,766,986 | | | | | | 1,686,389 | | |
Treasury stock, 171,908 shares at September 30, 2020 and December 31, 2019, at cost | | | | | (172) | | | | | | (172) | | |
Accumulated deficit | | | | | (27,464,043) | | | | | | (24,405,503) | | |
Total stockholders’ deficit | | | | | (25,696,692) | | | | | | (22,718,749) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit | | | | $ | 6,047,240 | | | | | $ | 4,214,588 | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
Revenue | | | | $ | 2,250,147 | | | | | $ | 692,707 | | | | | $ | 5,466,375 | | | | | $ | 3,007,911 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 903,862 | | | | | | 486,665 | | | | | | 2,032,111 | | | | | | 1,506,820 | | |
Technology | | | | | 413,381 | | | | | | 302,934 | | | | | | 1,131,695 | | | | | | 778,892 | | |
Sales and marketing | | | | | 506,641 | | | | | | 357,209 | | | | | | 1,305,897 | | | | | | 1,029,049 | | |
Supply development | | | | | 133,007 | | | | | | 205,659 | | | | | | 395,200 | | | | | | 593,377 | | |
Fulfillment | | | | | 241,785 | | | | | | 227,182 | | | | | | 642,140 | | | | | | 701,037 | | |
General and administrative | | | | | 774,407 | | | | | | 645,627 | | | | | | 1,431,262 | | | | | | 1,561,532 | | |
Total operating expenses | | | | | 2,973,083 | | | | | | 2,225,276 | | | | | | 6,938,305 | | | | | | 6,170,707 | | |
Loss from operations | | | | | (722,936) | | | | | | (1,532,569) | | | | | | (1,471,930) | | | | | | (3,162,796) | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (469,477) | | | | | | (454,859) | | | | | | (1,517,697) | | | | | | (1,209,857) | | |
Change in fair value of derivative liability | | | | | (54,000) | | | | | | (158,000) | | | | | | (76,000) | | | | | | 725,000 | | |
Other income | | | | | — | | | | | | 29 | | | | | | 6,691 | | | | | | 151,073 | | |
Interest income | | | | | 87 | | | | | | 156 | | | | | | 396 | | | | | | 609 | | |
Other expense, net | | | | | (523,390) | | | | | | (612,674) | | | | | | (1,586,610) | | | | | | (333,175) | | |
Net loss before benefit from income taxes | | | | | (1,246,326) | | | | | | (2,145,243) | | | | | | (3,058,540) | | | | | | (3,495,971) | | |
Benefit from income taxes | | | | | — | | | | | | 39,250 | | | | | | — | | | | | | 117,750 | | |
Net loss | | | | $ | (1,246,326) | | | | | $ | (2,105,993) | | | | | $ | (3,058,540) | | | | | $ | (3,378,221) | | |
Net loss per share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (0.24) | | | | | $ | (0.41) | | | | | $ | (0.59) | | | | | $ | (0.65) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | | 5,191,457 | | | | | | 5,191,457 | | | | | | 5,191,457 | | | | | | 5,190,583 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash | | | | $ | 355,126 | | | | | $ | 695,909 | | |
Accounts receivable – unbilled | | | | | 1,079,734 | | | | | | 652,761 | | |
Accounts receivable, net of allowance for doubtful accounts of $128,748 and $108,096 at March 31, 2021 and December 31, 2020, respectively | | | | | 580,196 | | | | | | 1,526,392 | | |
Due from factor | | | | | 495,735 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 428,084 | | | | | | 417,929 | | |
Tax credit receivable, current portion | | | | | 179,376 | | | | | | 179,376 | | |
Total current assets | | | | | 3,118,251 | | | | | | 3,472,367 | | |
Property and equipment, net | | | | | 64,459 | | | | | | 75,589 | | |
Internally developed software, net | | | | | 2,613,444 | | | | | | 2,634,139 | | |
Security deposits | | | | | 27,601 | | | | | | 27,601 | | |
Total assets | | | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,091,562 | | | | | $ | 1,792,432 | | |
Accrued expenses | | | | | 1,119,322 | | | | | | 810,910 | | |
Accrued interest | | | | | 4,253,987 | | | | | | 3,696,944 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | | 5,491,899 | | | | | | 5,490,811 | | |
Derivative liability for embedded conversion features on convertible notes payable | | | | | 2,527,000 | | | | | | 2,373,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs | | | | | 4,185,172 | | | | | | 4,589,228 | | |
Bridge notes payable, related parties, net of debt discount | | | | | 1,735,094 | | | | | | 1,905,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties | | | | | 3,662,000 | | | | | | — | | |
Note payable, current portion | | | | | — | | | | | | 604,109 | | |
Deferred revenue | | | | | 804,065 | | | | | | 873,254 | | |
Total current liabilities | | | | | 25,870,101 | | | | | | 22,135,688 | | |
Note payable, net of current portion | | | | | — | | | | | | 178,899 | | |
Total liabilities | | | | | 25,870,101 | | | | | | 22,314,587 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $10,722,596) | | | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $788,470) | | | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $3,974,448) | | | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock | | | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at March 31, 2021 and December 31, 2020 | | | | | 94 | | | | | | 94 | | |
Additional paid-in capital | | | | | 1,801,734 | | | | | | 1,779,698 | | |
Treasury stock, 31,000 shares at March 31, 2021 and December 31, 2020, at cost | | | | | (172) | | | | | | (172) | | |
Accumulated deficit | | | | | (33,021,078) | | | | | | (29,057,587) | | |
Total stockholders’ deficit | | | | | (31,219,422) | | | | | | (27,277,967) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit | | | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
| | | Nine months ended September 30, 2019 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Series B Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A Convertible Preferred Stock | | | | Common Stock | | | Treasury Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | Shares | | | | | | Amount | | | | | | Shares | | | | | | Amount | | | | | | Shares | | | | | | Amount | | | | | | | Shares | | | | | | Amount | | | | | | Shares | | | | | | Amount | | | | | | |||||||||||||||
Balance at January 1, 2019 | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,360,240 | | | | | $ | 537 | | | | | | 171,908 | | | | | $ | (172) | | | | | $ | 1,322,336 | | | | | $ | (19,746,453) | | | | | $ | (18,423,752) | | |
Cumulative effect from adoption of ASC 606 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 68,000 | | | | | | 68,000 | | |
Issuance of common stock through exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 3,062 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,606 | | | | | | — | | | | | | 3,606 | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,658 | | | | | | — | | | | | | 28,658 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 133,521 | | | | | | 133,521 | | |
Balance at March 31, 2019 (unaudited) | | | | | 3,174,363 | | | | | | 7,999,997 | | | | | | 556,540 | | | | | | 561,041 | | | | | | 3,427,871 | | | | | | 2,612,038 | | | | | | | 5,363,302 | | | | | | 537 | | | | | | 171,908 | | | | | | (172) | | | | | | 1,354,600 | | | | | | (19,544,932) | | | | | | (18,189,967) | | |
Issuance of common stock through exercise of stock options | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 63 | | | | | | — | | | | | | — | | | | | | — | | | | | | 68 | | | | | | — | | | | | | 68 | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 27,918 | | | | | | — | | | | | | 27,918 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,405,749) | | | | | | (1,405,749) | | |
Balance at June 30, 2019 (unaudited) | | | | | 3,174,363 | | | | | | 7,999,997 | | | | | | 556,540 | | | | | | 561,041 | | | | | | 3,427,871 | | | | | | 2,612,038 | | | | | | | 5,363,365 | | | | | | 537 | | | | | | 171,908 | | | | | | (172) | | | | | | 1,382,586 | | | | | | (20,950,681) | | | | | | (19,567,730) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 283,287 | | | | | | — | | | | | | 283,287 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,105,993) | | | | | | (2,105,993) | | |
Balance at September 30, 2019 (unaudited) | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,363,365 | | | | | $ | 537 | | | | | | 171,908 | | | | | $ | (172) | | | | | $ | 1,665,873 | | | | | $ | (23,056,674) | | | | | $ | (21,390,436) | | |
Balance at January 1, 2020 | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,363,365 | | | | | $ | 537 | | | | | | 171,908 | | | | | $ | (172) | | | | | $ | 1,686,389 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,044 | | | | | | — | | | | | | 22,044 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,604,514) | | | | | | (1,604,514) | | |
Balance at March 31, 2020 (unaudited) | | | | | 3,174,363 | | | | | | 7,999,997 | | | | | | 556,540 | | | | | | 561,041 | | | | | | 3,427,871 | | | | | | 2,612,038 | | | | | | | 5,363,365 | | | | | | 537 | | | | | | 171,908 | | | | | | (172) | | | | | | 1,708,433 | | | | | | (26,010,017) | | | | | | (24,301,219) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,287 | | | | | | — | | | | | | 29,287 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (207,700) | | | | | | (207,700) | | |
Balance at June 30, 2020 (unaudited) | | | | | 3,174,363 | | | | | | 7,999,997 | | | | | | 556,540 | | | | | | 561,041 | | | | | | 3,427,871 | | | | | | 2,612,038 | | | | | | | 5,363,365 | | | | | | 537 | | | | | | 171,908 | | | | | | (172) | | | | | | 1,737,720 | | | | | | (26,217,717) | | | | | | (24,479,632) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,266 | | | | | | — | | | | | | 29,266 | | |
Net loss | | ��� | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,246,326) | | | | | | (1,246,326) | | |
Balance at September 30, 2020 (unaudited) | | | | | 3,174,363 | | | | | $ | 7,999,997 | | | | | | 556,540 | | | | | $ | 561,041 | | | | | | 3,427,871 | | | | | $ | 2,612,038 | | | | | | | 5,363,365 | | | | | $ | 537 | | | | | | 171,908 | | | | | $ | (172) | | | | | $ | 1,766,986 | | | | | $ | (27,464,043) | | | | | $ | (25,696,692) | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue | | | | | 1,623,651 | | | | | | 654,268 | | |
Technology | | | | | 409,951 | | | | | | 426,712 | | |
Sales and marketing | | | | | 529,387 | | | | | | 431,640 | | |
Supply development | | | | | 111,576 | | | | | | 114,605 | | |
Fulfillment | | | | | 269,096 | | | | | | 215,171 | | |
General and administrative | | | | | 962,790 | | | | | | 314,797 | | |
Total operating expenses | | | | | 3,906,451 | | | | | | 2,157,193 | | |
Loss from operations | | | | | (942,644) | | | | | | (445,533) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense | | | | | (853,147) | | | | | | (587,669) | | |
Change in fair value of derivative liability on convertible notes | | | | | (154,000) | | | | | | (605,000) | | |
Change in fair value of derivative liability on bridge notes and bridge notes, related parties | | | | | (48,000) | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties | | | | | (2,750,171) | | | | | | — | | |
Gain on extinguishment of note payable | | | | | 788,156 | | | | | | — | | |
Other income | | | | | (3,732) | | | | | | — | | |
Interest income | | | | | 47 | | | | | | 223 | | |
Other expense, net | | | | | (3,020,847) | | | | | | (1,192,446) | | |
Net loss before benefit from income taxes | | | | | (3,963,491) | | | | | | (1,637,979) | | |
Benefit from income taxes | | | | | — | | | | | | — | | |
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (4.23) | | | | | $ | (1.75) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted | | | | | 936,213 | | | | | | 936,213 | | |
| | | Nine Months Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss | | | | $ | (3,058,540) | | | | | $ | (3,378,221) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation | | | | | 80,597 | | | | | | 339,863 | | |
Amortization of internally developed software | | | | | 599,425 | | | | | | 432,781 | | |
Depreciation and amortization of property and equipment | | | | | 33,563 | | | | | | 43,020 | | |
Amortization of discount and debt issuance costs on convertible notes | | | | | 141,628 | | | | | | 415,736 | | |
Change in fair value of derivative liability | | | | | 76,000 | | | | | | (725,000) | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (924,827) | | | | | | 389,405 | | |
Accounts receivable – unbilled | | | | | 130,813 | | | | | | (100,435) | | |
Inventory | | | | | 28,174 | | | | | | (7,864) | | |
Prepaid expenses and other current assets | | | | | (35,144) | | | | | | 3,693 | | |
Tax credit receivable | | | | | 104,624 | | | | | | (117,750) | | |
Accounts payable | | | | | 474,264 | | | | | | (40,708) | | |
Accrued expenses | | | | | 129,644 | | | | | | 102,931 | | |
Accrued interest | | | | | 1,374,139 | | | | | | 791,154 | | |
Deferred revenue | | | | | 581,912 | | | | | | — | | |
Net cash used in operating activities | | | | | (263,728) | | | | | | (1,851,395) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (1,006) | | | | | | (38,176) | | |
Capitalization of internally developed software | | | | | (864,921) | | | | | | (1,081,068) | | |
Net cash used in investing activities | | | | | (865,927) | | | | | | (1,119,244) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable | | | | | 1,250,000 | | | | | | 2,370,000 | | |
Proceeds from issuance of note payable | | | | | 783,008 | | | | | | — | | |
Proceeds from exercise of stock options | | | | | — | | | | | | 3,674 | | |
Net cash provided by financing activities | | | | | 2,033,008 | | | | | | 2,373,674 | | |
Net increase (decrease) in cash | | | | | 903,353 | | | | | | (596,965) | | |
Cash at beginning of period | | | | | 53,893 | | | | | | 1,130,364 | | |
Cash at end of period | | | | $ | 957,246 | | | | | $ | 533,399 | | |
| | | Series B Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A Convertible Preferred Stock | | | | Common Stock | | | Treasury Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,045 | | | | | | — | | | | | | 22,045 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | ��� | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,637,979) | | | | | | (1,637,979) | | |
Balance at March 31, 2020 (unaudited) | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,708,877 | | | | | $ | (26,043,482) | | | | | $ | (24,334,683) | | |
Balance at January 1, 2021 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,036 | | | | | | — | | | | | | 22,036 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,963,491) | | | | | | (3,963,491) | | |
Balance at March 31, 2021 (unaudited) | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,801,734 | | | | | $ | (33,021,078) | | | | | $ | (31,219,422) | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation | | | | | 22,036 | | | | | | 22,045 | | |
Amortization of internally developed software | | | | | 235,229 | | | | | | 206,508 | | |
Depreciation of property and equipment | | | | | 11,130 | | | | | | 14,340 | | |
Bad debt expense | | | | | 20,652 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes | | | | | 1,088 | | | | | | 137,998 | | |
Amortization of discount on bridge notes | | | | | 289,867 | | | | | | — | | |
Change in fair value of derivative liabilities | | | | | 202,000 | | | | | | 605,000 | | |
Loss on extinguishment of bridge notes | | | | | 2,750,171 | | | | | | — | | |
Gain on extinguishment of note payable | | | | | (788,156) | | | | | | — | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 925,544 | | | | | | (566,465) | | |
Accounts receivable – unbilled | | | | | (426,973) | | | | | | (305,197) | | |
Due from factor | | | | | (495,735) | | | | | | — | | |
Prepaid expenses and other current assets | | | | | (10,155) | | | | | | (62,740) | | |
Accounts payable | | | | | 299,130 | | | | | | 110,414 | | |
Accrued expenses | | | | | 308,410 | | | | | | 163,843 | | |
Accrued interest | | | | | 562,193 | | | | | | 449,671 | | |
Deferred revenue | | | | | (69,189) | | | | | | 436,551 | | |
Net cash used in operating activities | | | | | (126,249) | | | | | | (426,011) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | — | | | | | | (900) | | |
Capitalization of internally developed software | | | | | (214,534) | | | | | | (259,304) | | |
Net cash used in investing activities | | | | | (214,534) | | | | | | (260,204) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable | | | | | — | | | | | | 1,000,000 | | |
Net cash provided by financing activities | | | | | — | | | | | | 1,000,000 | | |
Net (decrease) increase in cash | | | | | (340,783) | | | | | | 313,785 | | |
Cash at beginning of period | | | | | 695,909 | | | | | | 53,893 | | |
Cash at end of period | | | | $ | 355,126 | | | | | $ | 367,678 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Derivative liability for embedded conversion features on convertible notes issued | | | | $ | 3,614,000 | | | | | $ | — | | |
| | | Fair value at December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | | Fair value at December 31, 2019 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
| | | 2020 | | | 2019 | | ||||||
Balance, beginning of period | | | | $ | 2,214,000 | | | | | $ | 2,765,000 | | |
Loss (gain) included in earnings | | | | | 159,000 | | | | | | (551,000) | | |
Balance, end of period | | | | $ | 2,373,000 | | | | | $ | 2,214,000 | | |
Years Ended December 31, | | | Operating Leases | | |||
2021 | | | | $ | 161,062 | | |
2022 | | | | | 163,158 | | |
2023 | | | | | 165,254 | | |
2024 | | | | | 27,601 | | |
Total | | | | $ | 517,075 | | |
| | | 2020 | | | 2019 | |
Assumptions: | | | | | | | |
Risk-free interest rate | | | 0.30% – 1.41% | | | 1.59% – 2.58% | |
Expected term (in years) | | | 5.32 – 6.14 | | | 5.00 – 6.14 | |
Expected volatility | | | 43.11% – 50.14% | | | 41.00% – 43.92% | |
Expected dividend yield | | | —% | | | —% | |
| | | Options Outstanding | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term in Years | | |||||||||
Balance at January 1, 2019 | | | | | 90,799 | | | | | $ | 2.57 | | | | | | 8.78 | | |
Granted | | | | | 162,016 | | | | | $ | 1.13 | | | | | | | | |
Exercised | | | | | (562) | | | | | $ | 6.52 | | | | | | | | |
Cancelled/forfeited | | | | | (27,369) | | | | | $ | 6.09 | | | | | | | | |
Balance at December 31, 2019 | | | | | 224,884 | | | | | $ | 1.08 | | | | | | 8.78 | | |
Granted | | | | | 43,259 | | | | | $ | 1.00 | | | | | | | | |
Exercised | | | | | — | | | | | $ | 1.00 | | | | | | | | |
Cancelled/forfeited | | | | | (16,296) | | | | | $ | 4.20 | | | | | | | | |
Balance at December 31, 2020 | | | | | 251,847 | | | | | $ | 1.00 | | | | | | 8.06 | | |
Options exercisable at December 31, 2020 | | | | | 180,716 | | | | | $ | 1.00 | | | | | | 7.85 | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
Specimens – contracts with customers | | | | $ | 2,223,057 | | | | | $ | 680,556 | | | | | $ | 5,408,012 | | | | | $ | 2,942,268 | | |
Shipping and other | | | | | 27,090 | | | | | | 12,151 | | | | | | 58,363 | | | | | | 65,643 | | |
Revenue | | | | $ | 2,250,147 | | | | | $ | 692,707 | | | | | $ | 5,466,375 | | | | | $ | 3,007,911 | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
Shares issuable upon conversion of preferred stock | | �� | | | 7,158,774 | | | | | | 7,158,774 | | | | | | 7,158,774 | | | | | | 7,158,774 | | |
Shares issuable upon exercise of stock options | | | | | 1,424,041 | | | | | | 1,279,398 | | | | | | 1,424,041 | | | | | | 1,279,398 | | |
Shares issuable upon exercise of warrants to purchase common stock | | | | | 129,254 | | | | | | 129,254 | | | | | | 129,254 | | | | | | 129,254 | | |
| | | September 30, 2020 | | | December 31, 2019 | | ||||||
| | | (unaudited) | | | | | | | | |||
Website | | | | $ | 105,376 | | | | | $ | 105,376 | | |
Computer equipment and purchased software | | | | | 84,588 | | | | | | 84,481 | | |
Equipment | | | | | 35,449 | | | | | | 35,134 | | |
Furniture and fixtures | | | | | 87,184 | | | | | | 87,184 | | |
Leasehold improvements | | | | | 24,936 | | | | | | 24,935 | | |
Total property and equipment | | | | | 337,533 | | | | | | 337,110 | | |
Accumulated depreciation | | | | | (250,169) | | | | | | (217,189) | | |
Total property and equipment, net | | | | $ | 87,364 | | | | | $ | 119,921 | | |
| | | 2020 | | | 2019 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Operating loss carryforwards | | | | $ | 6,600,000 | | | | | $ | 5,600,000 | | |
Other | | | | | 700,000 | | | | | | 1,000,000 | | |
Total deferred tax assets | | | | | 7,300,000 | | | | | | 6,600,000 | | |
Deferred tax liability: | | | | | | | | | | | | | |
Intangibles | | | | | (250,000) | | | | | | (150,000) | | |
Total deferred tax liabilities | | | | | (250,000) | | | | | | (150,000) | | |
Net deferred tax assets before valuation allowance | | | | | 7,050,000 | | | | | | 6,450,000 | | |
Valuation allowance | | | | | (7,050,000) | | | | | | (6,450,000) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| | | 2020 | | | 2019 | | ||||||
Reconciliation to statutory rates | | | | | | | | | | | | | |
Expected federal income taxes benefit at statutory rates | | | | | (21)% | | | | | | (21)% | | |
Expected state tax benefit at statutory rates, net of federal benefit | | | | | (8) | | | | | | (8) | | |
Change in valuation allowance | | | | | 29 | | | | | | 29 | | |
Income tax expense (benefit) | | | | | —% | | | | | | —% | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash | | | | $ | 355,126 | | | | | $ | 695,909 | | |
Accounts receivable – unbilled | | | | | 1,079,734 | | | | | | 652,761 | | |
Accounts receivable, net of allowance for doubtful accounts of $128,748 and $108,096 at March 31, 2021 and December 31, 2020, respectively | | | | | 580,196 | | | | | | 1,526,392 | | |
Due from factor | | | | | 495,735 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 428,084 | | | | | | 417,929 | | |
Tax credit receivable, current portion | | | | | 179,376 | | | | | | 179,376 | | |
Total current assets | | | | | 3,118,251 | | | | | | 3,472,367 | | |
Property and equipment, net | | | | | 64,459 | | | | | | 75,589 | | |
Internally developed software, net | | | | | 2,613,444 | | | | | | 2,634,139 | | |
Security deposits | | | | | 27,601 | | | | | | 27,601 | | |
Total assets | | | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,091,562 | | | | | $ | 1,792,432 | | |
Accrued expenses | | | | | 1,119,322 | | | | | | 810,910 | | |
Accrued interest | | | | | 4,253,987 | | | | | | 3,696,944 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | | 5,491,899 | | | | | | 5,490,811 | | |
Derivative liability for embedded conversion features on convertible notes payable | | | | | 2,527,000 | | | | | | 2,373,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs | | | | | 4,185,172 | | | | | | 4,589,228 | | |
Bridge notes payable, related parties, net of debt discount | | | | | 1,735,094 | | | | | | 1,905,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties | | | | | 3,662,000 | | | | | | — | | |
Note payable, current portion | | | | | — | | | | | | 604,109 | | |
Deferred revenue | | | | | 804,065 | | | | | | 873,254 | | |
Total current liabilities | | | | | 25,870,101 | | | | | | 22,135,688 | | |
Note payable, net of current portion | | | | | — | | | | | | 178,899 | | |
Total liabilities | | | | | 25,870,101 | | | | | | 22,314,587 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $10,722,596) | | | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $788,470) | | | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $3,974,448) | | | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock | | | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at March 31, 2021 and December 31, 2020 | | | | | 94 | | | | | | 94 | | |
Additional paid-in capital | | | | | 1,801,734 | | | | | | 1,779,698 | | |
Treasury stock, 31,000 shares at March 31, 2021 and December 31, 2020, at cost | | | | | (172) | | | | | | (172) | | |
Accumulated deficit | | | | | (33,021,078) | | | | | | (29,057,587) | | |
Total stockholders’ deficit | | | | | (31,219,422) | | | | | | (27,277,967) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit | | | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue | | | | | 1,623,651 | | | | | | 654,268 | | |
Technology | | | | | 409,951 | | | | | | 426,712 | | |
Sales and marketing | | | | | 529,387 | | | | | | 431,640 | | |
Supply development | | | | | 111,576 | | | | | | 114,605 | | |
Fulfillment | | | | | 269,096 | | | | | | 215,171 | | |
General and administrative | | | | | 962,790 | | | | | | 314,797 | | |
Total operating expenses | | | | | 3,906,451 | | | | | | 2,157,193 | | |
Loss from operations | | | | | (942,644) | | | | | | (445,533) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense | | | | | (853,147) | | | | | | (587,669) | | |
Change in fair value of derivative liability on convertible notes | | | | | (154,000) | | | | | | (605,000) | | |
Change in fair value of derivative liability on bridge notes and bridge notes, related parties | | | | | (48,000) | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties | | | | | (2,750,171) | | | | | | — | | |
Gain on extinguishment of note payable | | | | | 788,156 | | | | | | — | | |
Other income | | | | | (3,732) | | | | | | — | | |
Interest income | | | | | 47 | | | | | | 223 | | |
Other expense, net | | | | | (3,020,847) | | | | | | (1,192,446) | | |
Net loss before benefit from income taxes | | | | | (3,963,491) | | | | | | (1,637,979) | | |
Benefit from income taxes | | | | | — | | | | | | — | | |
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (4.23) | | | | | $ | (1.75) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted | | | | | 936,213 | | | | | | 936,213 | | |
| | | Series B Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A Convertible Preferred Stock | | | | Common Stock | | | Treasury Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,045 | | | | | | — | | | | | | 22,045 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | ��� | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,637,979) | | | | | | (1,637,979) | | |
Balance at March 31, 2020 (unaudited) | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,708,877 | | | | | $ | (26,043,482) | | | | | $ | (24,334,683) | | |
Balance at January 1, 2021 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,036 | | | | | | — | | | | | | 22,036 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,963,491) | | | | | | (3,963,491) | | |
Balance at March 31, 2021 (unaudited) | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,801,734 | | | | | $ | (33,021,078) | | | | | $ | (31,219,422) | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation | | | | | 22,036 | | | | | | 22,045 | | |
Amortization of internally developed software | | | | | 235,229 | | | | | | 206,508 | | |
Depreciation of property and equipment | | | | | 11,130 | | | | | | 14,340 | | |
Bad debt expense | | | | | 20,652 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes | | | | | 1,088 | | | | | | 137,998 | | |
Amortization of discount on bridge notes | | | | | 289,867 | | | | | | — | | |
Change in fair value of derivative liabilities | | | | | 202,000 | | | | | | 605,000 | | |
Loss on extinguishment of bridge notes | | | | | 2,750,171 | | | | | | — | | |
Gain on extinguishment of note payable | | | | | (788,156) | | | | | | — | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 925,544 | | | | | | (566,465) | | |
Accounts receivable – unbilled | | | | | (426,973) | | | | | | (305,197) | | |
Due from factor | | | | | (495,735) | | | | | | — | | |
Prepaid expenses and other current assets | | | | | (10,155) | | | | | | (62,740) | | |
Accounts payable | | | | | 299,130 | | | | | | 110,414 | | |
Accrued expenses | | | | | 308,410 | | | | | | 163,843 | | |
Accrued interest | | | | | 562,193 | | | | | | 449,671 | | |
Deferred revenue | | | | | (69,189) | | | | | | 436,551 | | |
Net cash used in operating activities | | | | | (126,249) | | | | | | (426,011) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | — | | | | | | (900) | | |
Capitalization of internally developed software | | | | | (214,534) | | | | | | (259,304) | | |
Net cash used in investing activities | | | | | (214,534) | | | | | | (260,204) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable | | | | | — | | | | | | 1,000,000 | | |
Net cash provided by financing activities | | | | | — | | | | | | 1,000,000 | | |
Net (decrease) increase in cash | | | | | (340,783) | | | | | | 313,785 | | |
Cash at beginning of period | | | | | 695,909 | | | | | | 53,893 | | |
Cash at end of period | | | | $ | 355,126 | | | | | $ | 367,678 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Derivative liability for embedded conversion features on convertible notes issued | | | | $ | 3,614,000 | | | | | $ | — | | |
| | | Fair value at September 30, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability for embedded conversion features | | | | $ | 2,290,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,290,000 | | |
Total liabilities | | | | $ | 2,290,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,290,000 | | |
|
| | | Fair value at December 31, 2019 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability for embedded conversion features | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
| | | Fair value at December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | | Fair value at December 31, 2019 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
Total liabilities | | | | $ | 2,214,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,214,000 | | |
| | September 30, 2020 | | September 30, 2019 | | | 2020 | | 2019 | | ||||||||||||||||
Balance, beginning of period | | | $ | 2,214,000 | | | | $ | 2,765,000 | | | | | $ | 2,214,000 | | | | $ | 2,765,000 | | | ||||
(Gain) loss included in earnings | | | | 76,000 | | | | | (725,000) | | | |||||||||||||||
Loss (gain) included in earnings | | | | 159,000 | | | | | (551,000) | | | |||||||||||||||
Balance, end of period | | | $ | 2,290,000 | | | | $ | 2,040,000 | | | | | $ | 2,373,000 | | | | $ | 2,214,000 | | |
Year Ending December 31, | | Operating Leases | | |||||||||||
2020 (remaining) | | | $ | 39,829 | | | ||||||||
Years Ended December 31, | | Operating Leases | | |||||||||||
2021 | | | | 161,062 | | | | | $ | 161,062 | | | ||
2022 | | | | 163,158 | | | | | | 163,158 | | | ||
2023 | | | | 165,254 | | | | | | 165,254 | | | ||
2024 | | | | 27,601 | | | | | | 27,601 | | | ||
Total | | | $ | 556,904 | | | | | $ | 517,075 | | |
| | 2020 | | 2019 | | | 2020 | | 2019 | | ||||
Assumptions: | | | | | | | | | | | ||||
Risk-free interest rate | | 0.30%-1.41% | | 1.86%-2.51% | | | 0.30% – 1.41% | | 1.59% – 2.58% | | ||||
Expected term (in years) | | 5.32-6.14 | | 5.00-6.13 | | | 5.32 – 6.14 | | 5.00 – 6.14 | | ||||
Expected volatility | | 43.11%-50.14% | | 41.12%-43.92% | | | 43.11% – 50.14% | | 41.00% – 43.92% | | ||||
Expected dividend yield | | —% | | —% | | | —% | | —% | |
| | Options Outstanding | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term in Years | | | Options Outstanding | | Weighted Average Exercise Price | | Weighted Average Remaining Contractual Term in Years | | ||||||||||||||||||||||||
Balance at January 1, 2019 | | | | 90,799 | | | | $ | 2.57 | | | | | 8.78 | | | ||||||||||||||||||||||
Granted | | | | 162,016 | | | | $ | 1.13 | | | | | | | | ||||||||||||||||||||||
Exercised | | | | (562) | | | | $ | 6.52 | | | | | | | | ||||||||||||||||||||||
Cancelled/forfeited | | | | (27,369) | | | | $ | 6.09 | | | | | | | | ||||||||||||||||||||||
Balance at December 31, 2019 | | | | 1,247,198 | | | | $ | 0.18 | | | | | 8.78 | | | | | | 224,884 | | | | $ | 1.08 | | | | | 8.78 | | | ||||||
Granted | | | | 240,000 | | | | | 0.18 | | | | | | | | | | | 43,259 | | | | $ | 1.00 | | | | | | | | ||||||
Exercised | | | | — | | | | | — | | | | | | | | | | | — | | | | $ | 1.00 | | | | | | | | ||||||
Cancelled/forfeited | | | | (63,157) | | | | | 0.18 | | | | | | | | | | | (16,296) | | | | $ | 4.20 | | | | | | | | ||||||
Balance at September 30, 2020 | | | | 1,424,041 | | | | $ | 0.18 | | | | | 8.29 | | | ||||||||||||||||||||||
Options exercisable at September 30, 2020 | | | | 979,777 | | | | $ | 0.18 | | | | | 8.05 | | | ||||||||||||||||||||||
Balance at December 31, 2020 | | | | 251,847 | | | | $ | 1.00 | | | | | 8.06 | | | ||||||||||||||||||||||
Options exercisable at December 31, 2020 | | | | 180,716 | | | | $ | 1.00 | | | | | 7.85 | | |
| | | 2020 | | | 2019 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Operating loss carryforwards | | | | $ | 6,600,000 | | | | | $ | 5,600,000 | | |
Other | | | | | 700,000 | | | | | | 1,000,000 | | |
Total deferred tax assets | | | | | 7,300,000 | | | | | | 6,600,000 | | |
Deferred tax liability: | | | | | | | | | | | | | |
Intangibles | | | | | (250,000) | | | | | | (150,000) | | |
Total deferred tax liabilities | | | | | (250,000) | | | | | | (150,000) | | |
Net deferred tax assets before valuation allowance | | | | | 7,050,000 | | | | | | 6,450,000 | | |
Valuation allowance | | | | | (7,050,000) | | | | | | (6,450,000) | | |
Net deferred tax asset | | | | $ | — | | | | | $ | — | | |
| | | 2020 | | | 2019 | | ||||||
Reconciliation to statutory rates | | | | | | | | | | | | | |
Expected federal income taxes benefit at statutory rates | | | | | (21)% | | | | | | (21)% | | |
Expected state tax benefit at statutory rates, net of federal benefit | | | | | (8) | | | | | | (8) | | |
Change in valuation allowance | | | | | 29 | | | | | | 29 | | |
Income tax expense (benefit) | | | | | —% | | | | | | —% | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash | | | | $ | 355,126 | | | | | $ | 695,909 | | |
Accounts receivable – unbilled | | | | | 1,079,734 | | | | | | 652,761 | | |
Accounts receivable, net of allowance for doubtful accounts of $128,748 and $108,096 at March 31, 2021 and December 31, 2020, respectively | | | | | 580,196 | | | | | | 1,526,392 | | |
Due from factor | | | | | 495,735 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 428,084 | | | | | | 417,929 | | |
Tax credit receivable, current portion | | | | | 179,376 | | | | | | 179,376 | | |
Total current assets | | | | | 3,118,251 | | | | | | 3,472,367 | | |
Property and equipment, net | | | | | 64,459 | | | | | | 75,589 | | |
Internally developed software, net | | | | | 2,613,444 | | | | | | 2,634,139 | | |
Security deposits | | | | | 27,601 | | | | | | 27,601 | | |
Total assets | | | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,091,562 | | | | | $ | 1,792,432 | | |
Accrued expenses | | | | | 1,119,322 | | | | | | 810,910 | | |
Accrued interest | | | | | 4,253,987 | | | | | | 3,696,944 | | |
Convertible notes payable, related parties, net of unamortized debt discount and debt issuance costs | | | | | 5,491,899 | | | | | | 5,490,811 | | |
Derivative liability for embedded conversion features on convertible notes payable | | | | | 2,527,000 | | | | | | 2,373,000 | | |
Bridge notes payable, net of debt discount and debt issuance costs | | | | | 4,185,172 | | | | | | 4,589,228 | | |
Bridge notes payable, related parties, net of debt discount | | | | | 1,735,094 | | | | | | 1,905,000 | | |
Derivative liability for embedded conversion feature on bridge notes payable and bridge notes, related parties | | | | | 3,662,000 | | | | | | — | | |
Note payable, current portion | | | | | — | | | | | | 604,109 | | |
Deferred revenue | | | | | 804,065 | | | | | | 873,254 | | |
Total current liabilities | | | | | 25,870,101 | | | | | | 22,135,688 | | |
Note payable, net of current portion | | | | | — | | | | | | 178,899 | | |
Total liabilities | | | | | 25,870,101 | | | | | | 22,314,587 | | |
Commitments and contingencies | | | | | | | | | | | | | |
Series B convertible preferred stock, $0.0001 par value, 3,200,000 shares authorized, 572,465 shares issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $10,722,596) | | | | | 7,999,997 | | | | | | 7,999,997 | | |
Series A-1 convertible preferred stock, $0.0001 par value, 556,550 shares authorized, 100,365 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $788,470) | | | | | 561,041 | | | | | | 561,041 | | |
Series A convertible preferred stock, $0.0001 par value, 3,427,871 shares authorized, 618,182 issued and outstanding at March 31, 2021 and December 31, 2020 (preference in liquidation of $3,974,448) | | | | | 2,612,038 | | | | | | 2,612,038 | | |
Total convertible preferred stock | | | | | 11,173,076 | | | | | | 11,173,076 | | |
Stockholders’ Deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 16,000,000 shares authorized, 967,213 issued and 936,213 outstanding at March 31, 2021 and December 31, 2020 | | | | | 94 | | | | | | 94 | | |
Additional paid-in capital | | | | | 1,801,734 | | | | | | 1,779,698 | | |
Treasury stock, 31,000 shares at March 31, 2021 and December 31, 2020, at cost | | | | | (172) | | | | | | (172) | | |
Accumulated deficit | | | | | (33,021,078) | | | | | | (29,057,587) | | |
Total stockholders’ deficit | | | | | (31,219,422) | | | | | | (27,277,967) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit | | | | $ | 5,823,755 | | | | | $ | 6,209,696 | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
Operating expenses: | | | | | | | | | | | | | |
Cost of revenue | | | | | 1,623,651 | | | | | | 654,268 | | |
Technology | | | | | 409,951 | | | | | | 426,712 | | |
Sales and marketing | | | | | 529,387 | | | | | | 431,640 | | |
Supply development | | | | | 111,576 | | | | | | 114,605 | | |
Fulfillment | | | | | 269,096 | | | | | | 215,171 | | |
General and administrative | | | | | 962,790 | | | | | | 314,797 | | |
Total operating expenses | | | | | 3,906,451 | | | | | | 2,157,193 | | |
Loss from operations | | | | | (942,644) | | | | | | (445,533) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense | | | | | (853,147) | | | | | | (587,669) | | |
Change in fair value of derivative liability on convertible notes | | | | | (154,000) | | | | | | (605,000) | | |
Change in fair value of derivative liability on bridge notes and bridge notes, related parties | | | | | (48,000) | | | | | | — | | |
Loss on extinguishment of bridge notes and bridge notes, related parties | | | | | (2,750,171) | | | | | | — | | |
Gain on extinguishment of note payable | | | | | 788,156 | | | | | | — | | |
Other income | | | | | (3,732) | | | | | | — | | |
Interest income | | | | | 47 | | | | | | 223 | | |
Other expense, net | | | | | (3,020,847) | | | | | | (1,192,446) | | |
Net loss before benefit from income taxes | | | | | (3,963,491) | | | | | | (1,637,979) | | |
Benefit from income taxes | | | | | — | | | | | | — | | |
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Net loss per share | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (4.23) | | | | | $ | (1.75) | | |
Weighted average common shares outstanding | | | | | | | | | | | | | |
Basic and diluted | | | | | 936,213 | | | | | | 936,213 | | |
| | | Series B Convertible Preferred Stock | | | Series A-1 Convertible Preferred Stock | | | Series A Convertible Preferred Stock | | | | Common Stock | | | Treasury Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2020 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,686,832 | | | | | $ | (24,405,503) | | | | | $ | (22,718,749) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,045 | | | | | | — | | | | | | 22,045 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | ��� | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,637,979) | | | | | | (1,637,979) | | |
Balance at March 31, 2020 (unaudited) | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 935,651 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,708,877 | | | | | $ | (26,043,482) | | | | | $ | (24,334,683) | | |
Balance at January 1, 2021 | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,779,698 | | | | | $ | (29,057,587) | | | | | $ | (27,277,967) | | |
Share-based compensation expense | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,036 | | | | | | — | | | | | | 22,036 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (3,963,491) | | | | | | (3,963,491) | | |
Balance at March 31, 2021 (unaudited) | | | | | 572,465 | | | | | $ | 7,999,997 | | | | | | 100,365 | | | | | $ | 561,041 | | | | | | 618,182 | | | | | $ | 2,612,038 | | | | | | | 936,213 | | | | | $ | 94 | | | | | | 31,000 | | | | | $ | (172) | | | | | $ | 1,801,734 | | | | | $ | (33,021,078) | | | | | $ | (31,219,422) | | |
| | | Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | | | | | | | | | | | | | |
Net loss | | | | $ | (3,963,491) | | | | | $ | (1,637,979) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Share-based compensation | | | | | 22,036 | | | | | | 22,045 | | |
Amortization of internally developed software | | | | | 235,229 | | | | | | 206,508 | | |
Depreciation of property and equipment | | | | | 11,130 | | | | | | 14,340 | | |
Bad debt expense | | | | | 20,652 | | | | | | — | | |
Amortization of discount and debt issuance costs on convertible notes | | | | | 1,088 | | | | | | 137,998 | | |
Amortization of discount on bridge notes | | | | | 289,867 | | | | | | — | | |
Change in fair value of derivative liabilities | | | | | 202,000 | | | | | | 605,000 | | |
Loss on extinguishment of bridge notes | | | | | 2,750,171 | | | | | | — | | |
Gain on extinguishment of note payable | | | | | (788,156) | | | | | | — | | |
Change in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 925,544 | | | | | | (566,465) | | |
Accounts receivable – unbilled | | | | | (426,973) | | | | | | (305,197) | | |
Due from factor | | | | | (495,735) | | | | | | — | | |
Prepaid expenses and other current assets | | | | | (10,155) | | | | | | (62,740) | | |
Accounts payable | | | | | 299,130 | | | | | | 110,414 | | |
Accrued expenses | | | | | 308,410 | | | | | | 163,843 | | |
Accrued interest | | | | | 562,193 | | | | | | 449,671 | | |
Deferred revenue | | | | | (69,189) | | | | | | 436,551 | | |
Net cash used in operating activities | | | | | (126,249) | | | | | | (426,011) | | |
CASH FLOWS FROM INVESTING ACTIVITIES: | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | — | | | | | | (900) | | |
Capitalization of internally developed software | | | | | (214,534) | | | | | | (259,304) | | |
Net cash used in investing activities | | | | | (214,534) | | | | | | (260,204) | | |
CASH FLOWS FROM FINANCING ACTIVITIES: | | | | | | | | | | | | | |
Proceeds from issuance of bridge notes payable | | | | | — | | | | | | 1,000,000 | | |
Net cash provided by financing activities | | | | | — | | | | | | 1,000,000 | | |
Net (decrease) increase in cash | | | | | (340,783) | | | | | | 313,785 | | |
Cash at beginning of period | | | | | 695,909 | | | | | | 53,893 | | |
Cash at end of period | | | | $ | 355,126 | | | | | $ | 367,678 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Derivative liability for embedded conversion features on convertible notes issued | | | | $ | 3,614,000 | | | | | $ | — | | |
| | | 2021 | | | 2020 | | ||||||
Specimens – contracts with customers | | | | $ | 2,947,295 | | | | | $ | 1,701,343 | | |
Shipping and other | | | | | 16,512 | | | | | | 10,317 | | |
Revenue | | | | $ | 2,963,807 | | | | | $ | 1,711,660 | | |
| | | 2021 | | | 2020 | | ||||||
Shares issuable upon conversion of preferred stock | | | | | 1,291,012 | | | | | | 1,291,012 | | |
Shares issuable upon exercise of stock options | | | | | 265,102 | | | | | | 224,519 | | |
Shares issuable upon exercise of warrants to purchase common stock | | | | | 23,309 | | | | | | 23,309 | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| | | (unaudited) | | | | | | | | |||
Website | | | | $ | 105,376 | | | | | $ | 105,376 | | |
Computer equipment and purchased software | | | | | 84,589 | | | | | | 84,589 | | |
Equipment | | | | | 35,449 | | | | | | 35,449 | | |
Furniture and fixtures | | | | | 87,184 | | | | | | 87,184 | | |
Leasehold improvements | | | | | 24,935 | | | | | | 24,935 | | |
Total property and equipment | | | | | 337,533 | | | | | | 337,533 | | |
Accumulated depreciation | | | | | (273,074) | | | | | | (261,944) | | |
Total property and equipment, net | | | | $ | 64,459 | | | | | $ | 75,589 | | |
| | | Fair value at March 31, 2021 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (unaudited) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability on convertible notes payable, related parties | | | | $ | 2,527,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,527,000 | | |
Derivative liability on bridge notes payable and bridge notes payable, related parties | | | | | 3,662,000 | | | | | | — | | | | | | — | | | | | $ | 3,662,000 | | |
Total liabilities | | | | $ | 6,189,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,189,000 | | |
| | | Fair value at December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability on convertible notes payable, related parties | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
Total liabilities | | | | $ | 2,373,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 2,373,000 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (unaudited) | | |||||||||
Balance, beginning of period | | | | $ | 2,373,000 | | | | | $ | 2,214,000 | | |
Derivative liability on bridge notes payable and bridge notes payable, related parties | | | | | 3,614,000 | | | | | | — | | |
Loss included in earnings | | | | | 202,000 | | | | | | 605,000 | | |
Balance, end of period | | | | $ | 6,189,000 | | | | | $ | 2,819,000 | | |
Year Ending December 31, | | | Operating Leases | | |||
2021 (remaining) | | | | $ | 121,058 | | |
2022 | | | | | 163,158 | | |
2023 | | | | | 165,254 | | |
2024 | | | | | 27,601 | | |
Total | | | | $ | 477,071 | | |
| | | 2021 | | | 2020 | |
Assumptions: | | | | | | | |
Risk-free interest rate | | | 0.47% – 0.64% | | | 1.35% – 1.41% | |
Expected term (in years) | | | 5.81 – 5.85 | | | 5.57 – 6.14 | |
Expected volatility | | | 49.88% – 49.98% | | | 43.11% – 43.91% | |
Expected dividend yield | | | —% | | | —% | |
| | | Options Outstanding | | | Weighted Average Exercise Price | | | Weighted Average Remaining Contractual Term in Years | | |||||||||
Balance at December 31, 2020 | | | | | 251,847 | | | | | $ | 1.00 | | | | | | 8.06 | | |
Granted | | | | | 14,515 | | | | | $ | 1.00 | | | | | | | | |
Exercised | | | | | — | | | | | $ | 1.00 | | | | | | | | |
Cancelled/forfeited | | | | | (1,260) | | | | | $ | 1.00 | | | | | | | | |
Balance at March 31, 2021 | | | | | 265,102 | | | | | $ | 1.00 | | | | | | 7.96 | | |
Options exercisable at March 31, 2021 | | | | | 179,456 | | | | | $ | 1.00 | | | | | | 7.66 | | |
| | | Amount to be paid | | |||
SEC registration fee | | | | $ | 2,313.38 | | |
FINRA filing fee | | | | | * | | |
Exchange listing fee | | | | | * | | |
Accounting fees and expenses | | | | | * | | |
Legal fees and expenses | | | | | * | | |
Printing expenses | | | | | * | | |
Transfer agent and registrar fees | | | | | * | | |
Miscellaneous expenses | | | | | * | | |
Total | | | | $ | * | | |
| | | Amount to be paid | | |||
SEC registration fee | | | | $ | 2,635 | | |
FINRA filing fee | | | | | 3,500 | | |
Exchange listing fee | | | | | 50,000 | | |
Accounting fees and expenses | | | | | 50,000 | | |
Legal fees and expenses | | | | | 350,000 | | |
Printing expenses | | | | | 140,000 | | |
Transfer agent and registrar fees | | | | | 4,000 | | |
Miscellaneous expenses | | | | | 1,000 | | |
Total | | | | $ | 601,135 | | |
| Exhibit No. | | | Description | |
| 1.1 | | | | |
| 3.1 | | | | |
| 3.2 | | | | |
| 3.3 | | | | |
| 3.4 | | | | |
| 3.5 | | | ||
| |||||
| 5.1 | | | | |
| 10.1 | | | | |
| 10.2 | | | | |
| 10.3 | | | | |
| 10.4 | | | | |
| 10.5 | | | | |
| 10.6 | | | | |
| 10.7 | | | | |
| 10.8 | | | | |
| 10.9 | | | | |
| 10.10 | | | | |
| 10.11 | | | | |
| 10.12 | | | |
| Name | | | Position | | | Date | |
| /s/ Christopher Ianelli Christopher Ianelli | | | Chief Executive Officer, President and Director (Principal Executive Officer) | | | | |
| /s/ Jill Mullan Jill Mullan | | | Chief Operating Officer, Secretary, Treasurer and Director | | | | |
| /s/ Tracy Curley Tracy Curley | | | Chief Financial Officer (Principal Financial and Accounting Officer) | | | | |
| /s/ Andrew L. Ross Andrew L. Ross | | | Chairman of the Board | | | | |
| /s/ George “Bud” Scholl George “Bud” Scholl | | | Director | | | | |
| /s/ Steven Gullans Steven Gullans | | | Director | | | |