nDivision Inc.

CIK:0001659183|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Service revenue	$ 1,254,870	$ 1,377,454
Service costs	1,362,960	1,142,023
Gross profit	(108,090)	235,431
Operating expenses
Selling, general and administrative expenses	783,490	1,370,594
total operation exp	783,490	1,370,594
Loss from operations	(891,580)	(1,135,163)
Other (expense) income
Interest expense	(459,950)	(113,236)
Gain on change in derivative liability	(4,654)	0
Other income	0	211
Other (expense) incomes	(464,604)	(113,025)
Net loss before income tax	(1,356,184)	(1,248,188)
Income tax expense	0	0
Net loss	$ (1,356,184)	$ (1,248,188)
Basic and diluted loss per share	$ (0.03)	$ (0.03)
Weighted average shares outstanding	45,297,648	42,519,640

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities
Net loss	$ (1,356,184)	$ (1,248,188)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	39,584	100,463
Provision for doubtful accounts	0	(16,000)
Amortization of beneficial conversion feature	132,349	70,567
Amortization of debt discount	247,852	0
Non-cash lease expense	27,017	25,596
Stock based compensation	211,283	297,417
Gain on the change in derivative liability	4,654	0
Changes in assets and liabilities
Accounts receivable	100,371	49,024
Prepaid expenses	4,456	(154,677)
Accounts payable	72,158	104,103
Accrued liabilities	(37,715)	141,131
Deferred revenue	(154,670)	(167,381)
Operating lease payable	(28,189)	(26,094)
Net cash used in operating activities	(737,034)	(824,039)
Cash flows from investing activities
Repayment of debt related to acquisition	0	(14,302)
Net cash used in investing activities	0	(14,302)
Cash flows from financing activities
Proceeds from factor credit facility, net	(13,648)	0
Proceeds from note, net	515,500	0
Proceeds from convertible notes payable, net	0	785,000
Repayment of finance lease obligations	(36,555)	(31,896)
Net cash provided by financing activities	465,297	753,104
Net decrease in cash	(271,737)	(85,237)
Cash, beginning of period	521,039	1,806,606
Cash, end of period	249,302	1,721,369
Supplemental cash flow disclosures
Interest paid	47,278	10,332
Non-cash financing activities
Cashless exercise of options	0	85
Purchase of equipment under capital lease	0	26,211
Beneficial conversion feature	0	620,375
Debt discount issued in connection with debt	93,195	0
Common stock issued for commitment fees	169,900	0
Warrants issued with debt	$ 40,750	$ 0

CONDENSED CONSOLDIATED BALANCE SHEETS - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 249,302	$ 521,039
Accounts receivable, net (allowance for doubtful accounts was $40,000 as of March 31, 2022 and December 31, 2021)	471,623	571,994
Prepaid expenses	158,631	163,087
Total current assets	879,556	1,256,120
Equipment and software licenses - at cost, less accumulated depreciation and amortization	379,051	418,635
Other assets
Right-of-use asset	310,162	337,179
Total other assets	310,162	337,179
Total assets	1,568,769	2,011,934
Current liabilities
Accounts payable	305,376	233,217
Accrued liabilities	774,473	812,188
Derivative liability	173,986	76,137
Deferred revenue	74,657	229,327
Factoring credit facility	199,958	213,606
Current portion of note payable	577,783	118,277
Current portion of convertible notes payable, net of discount	1,159,179	831,991
Current portion of operating lease payable	130,065	129,392
Current portion of finance lease obligations	134,207	136,220
Total current liabilities	3,529,684	2,780,355
Convertible notes payable, net of discount	163,931	358,770
Operating lease payable, net of current portion	197,984	226,846
Finance lease obligations, net of current portion	253,369	287,911
Total long-term liabilities	615,284	873,527
Stockholders' Deficit
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.001 par value, 180,000,000 shares authorized, and 45,919,870 and 44,919,870 shares issued and outstanding, respectively	45,920	44,920
Additional paid in capital	9,913,058	9,492,125
Accumulated deficit	(12,535,177)	(11,178,993)
Total stockholders' deficit	(2,576,199)	(1,641,948)
Total liabilities and stockholders' deficit	$ 1,568,769	$ 2,011,934