Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
CASH FLOW FROM OPERATING ACTIVITIES    
Net loss $ (24,564,000) $ (24,677,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 7,376,000 4,236,000
Amortization of debt issuance costs 937,000 643,000
Share-based compensation expense 564,000 1,355,000
Provision for doubtful accounts 517,000 870,000
Loss on sale of assets 59,000 0
Goodwill impairment 0 357,000
Termination of branding rights agreement 0 152,000
Unrealized loss (gain) on change in fair value of investments (109,000) (60,000)
Impairment expense (3,240,000) 0
Changes in operating assets and liabilities:    
Accounts receivable 3,542,000 (4,222,000)
Inventory 2,564,000 (108,000)
Prepaid expenses and other current assets 454,000 1,615,000
Other assets (106,000) 120,000
Accounts payable and accrued expenses (1,136,000) (6,329,000)
Net cash used in operating activities (6,444,000) (26,048,000)
CASH FLOW FROM INVESTING ACTIVITIES    
Proceeds from asset sales 60,000 1,978,000
Purchases of property and equipment (4,250,000) (3,593,000)
Acquisition of business assets, net 0 (6,156,000)
Net cash used in investing activities (4,190,000) (7,771,000)
CASH FLOW FROM FINANCING ACTIVITIES    
Proceeds from convertible notes, net of financing costs 6,552,000 0
Principal payments on lease obligations (2,497,000) (2,338,000)
Payments on notes payable (210,000) (407,000)
Proceeds from subordinate voting share offering 0 18,000,000
Issuance costs related to subordinate voting share offering 0 (66,000)
Proceeds from exercise of warrants and options 0 766,000
Net cash provided by financing activities 3,845,000 15,955,000
Change in cash and cash equivalents and restricted cash (6,789,000) (17,864,000)
Cash and cash equivalents-beginning of year 7,887,000 25,751,000
Cash, cash equivalents and restricted cash-end of period 1,098,000 7,887,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION    
Cash paid during the period for interest 4,215,000 4,200,000
Cash paid during the period for income taxes 171,000 268,000
OTHER NONCASH INVESTING AND FINANCING ACTIVITIES    
Purchase of property and equipment not yet paid for 819,000 79,000
Issuance of subordinate voting shares to acquire purchase rights 1,800,000 0
Issuance of subordinate voting shares in exchange for net assets acquired 0 43,259,000
Liabilities assumed and receivable forgiveness in exchange for net assets acquired 0 2,361,000
Debt and associated accrued interest converted to subordinate voting shares $ 0 $ 514,000