Cash flows for the six months ended March 31, 2022 and 2021
Net cash used in operating activities
Net cash flows used in operating activities for the six months ended March 31, 2022 were $5,598,220, primarily due to the net loss of $9,248,825 offset by amortization of debt discount of $713,197, depreciation and amortization of $64,802, amortization of license content assets of $482,213, amortization of right-of-use assets of $78,114, stock-based compensation expense of $2,665,724, write off of $20,000, gain on extinguishment of debt of $490,051, change in fair value of derivatives of $146,313 and net increase in operating assets and liabilities of $117,631.
Net cash flows used in operating activities for the six months ended March 31, 2021 were $4,350,902, primarily due to the net loss of $13,923,339 offset by amortization of debt discount of $465,641, depreciation and amortization expense of $1,075,898, amortization of license content assets of $94,086, amortization of right-of-use assets of $70,596, stock-based compensation expense of $6,046,053, write off of bad debt expense $167,874, impairment of intangible assets of $2,390,799, net loss on settlement of obligations of $15,000, gain on settlement of obligations of $13,900, and net decrease in operating assets and liabilities of $738,059.
Net cash used in investing activities
There were no cash flows used in investing activities for the six months ended March 31, 2022, as compared to $745,711 for the six months ended March 31, 2021, primarily due to the acquisition of the fixed assets, net of cash acquired of $750,000 offset by collections of note receivable of $1,477, and purchase of equipment of $2,752.
Net cash flow from financing activities
Net cash provided by financing activities for the six months ended March 31, 2022 was $2,073,670 due to receipt of proceeds of $1,250,000 from the issuance of common stock, proceeds of $1,500,000 from a non-revolving line of credit, offset by $552,832 repayment of a stockholder’s loan, and $123,498 of deferred offering costs.
Net cash provided by financing activities for the six months ended March 31, 2021 was $4,226,230 primarily due to $3,185,000 of cash proceeds received from issuance of common stock, cash proceeds from issuance of convertible debt of $1,100,000, offset by repayment of stockholder loans of $58,770.
As a result of the above activities, we recorded a net decrease in cash of $3,524,550 for the six months ended March 31, 2022. We reported a cash balance of $637,998 at March 31, 2022.
Cash flows for the years ended September 30, 2021 and 2020
Net cash flow from operating activities
Net cash used for operating activities during the year ended September 30, 2021, was $9,529,061 compared to $4,408,232 for the year ended September 30, 2020. The increase was primarily the result of an impairment charge on intangible assets of $11,206,523 and stock-based compensation expense of $8,292,265 in 2021 as compared to an impairment charge on intangible assets of $6,350,000 and stock-based compensation expense of $1,816,034 in 2020, partially offset by a change in non-cash working capital items from $734,000 during the year ended September 30, 2020, to $2,000,000 during the year ended September 30, 2021.
Net cash flow from investing activities
Net cash used in investing activities during the year ended September 30, 2021, was $1,522,186 as compared to $12,408 for the year ended September 30, 2020. The increase was primarily due to a $1,499,937 equity investment in an unconsolidated entity in the fourth calendar quarter of 2021.