Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.20.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net income (loss) attributable to MariMed Inc. $ (81,184,719) $ (13,604,068)
Net income (loss) attributable to noncontrolling interests (696,206) 295,395
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation 999,106 657,854
Amortization of intangibles 197,500
Amortization of stock grants 223,148
Amortization of option grants 1,457,684 3,945,398
Amortization of stand-alone warrant issuances 391,932 1,815,219
Amortization of warrants attached to debt 2,455,964 1,171,330
Amortization of beneficial conversion feature 5,242,483 1,522,107
Amortization of original issue discount 183,867
Goodwill write-downs 2,662,669 1,331,785
Bad debts 44,539,820 150,000
Loss on sale of fixed assets (2,858)
Equity issued to settle obligations 5,180 1,024,117
Loss on preferred stock conversions 34,044
Loss on debt settlements (5,180) (4,133,481)
Loss on equity investments 30,334,503 43,221
Change in fair value of investments 640,856
Changes in operating assets and liabilities:    
Accounts receivable (37,701,009) (4,073,482)
Deferred rents receivable 299,559 (1,485,595)
Due from third parties 1,355,746 (3,387,906)
Inventory (495,394)
Other current assets (63,815) 156,547
Other assets (92,981) 163,462
Accounts payable 632,471 3,614,087
Accrued expenses 3,436,024 183,032
Deferred rents payable (105,901) 105,901
Operating lease payments 529,434
Finance lease interest payments (6,414)
Unearned revenue
Other current liabilities 858,176
Other liabilities (238,000) 98,187
Net cash used in operating activities (24,138,317) (2,907,857)
Cash flows from investing activities:    
Purchase of property and equipment (9,668,521) (8,924,311)
Purchase of cannabis licenses (308,815)
Acquisitions (211,823) 13,494
Investment in third party companies (800,000)
Investment in convertible debentures (30,000,000)
Investment in notes receivable (2,680,000) (550,000)
Interest on notes receivable 211,989 (15,116)
Proceeds from notes receivable 45,553
Proceeds from sale of equipment 145,382
Due from related parties 119,781 15,000
Net cash used in investing activities (12,537,389) (40,069,998)
Cash flows from financing activities:    
Issuance of common stock 2,750,000 31,821,001
Issuance of common stock subscriptions 55,620
Issuance of interest in subsidiary
Issuance of promissory notes 19,760,000 3,206,338
Payments on promissory notes (700,000)
Proceeds from issuance of debentures 9,600,000 10,007,094
Proceeds from mortgages 2,000,000
Payments on mortgages (200,081) (114,141)
Exercise of stock options 97,500 39,000
Exercise of warrants 612,441 385,395
Due to related parties 1,178,402 (217,451)
Finance lease principal payments (13,954)
Distributions (474,229) (690,917)
Net cash provided by financing activities 33,310,079 45,791,939
Net change to cash and cash equivalents (3,365,627) 2,814,084
Cash and cash equivalents at beginning of period 4,104,315 1,290,231
Cash and cash equivalents at end of period 738,688 4,104,315
Supplemental disclosure of cash flow information:    
Cash paid for interest 1,294,810 1,286,007
Cash paid for income taxes 12,584
Non-cash activities:    
Conversion of debentures receivable 30,000,000
Operating lease right-of-use assets and liabilities 7,251,837
Finance lease right-of-use assets and liabilities 172,605
Conversions of debentures payable 8,975,920 1,435,506
Beneficial conversion feature on debentures payable 4,235,469 5,569,908
Discount on debentures payable 1,148,056 1,057,833
Discount on promissory notes 605,780 1,709,595
Common stock issued to settle debt 1,047,100 7,589,788
Common stock issued to settle obligations 120,864 18,540
Common stock issued for acquisitions 2,470,840 266,682
Common stock issued for investments 1,590,000 915,006
Harvest payment 1,000
Conversion of notes receivable to investment 257,687
Issuance of common stock associated with subscriptions 169,123 370,000
Conversion of advances to notes receivable 855,913
Exercise of options via the reduction of obligation 350,000
Cashless exercise of stock options 1,762
Reclass of accrued interest from notes payable 127,450
Reclass of accrued interest from debentures payable 62,748
Conversions of promissory notes $ 1,075,000