Net cash flows used in investing activities for the nine months ended June 30, 2021, were $(1,495,708) for acquisition of fixed assets, net of cash acquired of $(750,000), cash paid for acquisition of EON Media Group, net of cash acquired of $(749,937), purchase of equipment of $2,752 and collection of note receivable of $1,477.
Net cash flow from financing activities
Net cash provided by financing activities for the nine months ended June 30, 2022, was $6,337,022 due to receipt of proceeds of $1,250,000 from the issuance of common stock, proceeds of $6,222,986 from a non-revolving lines of credit, proceeds of $2,079,993 from convertible debt, offset by $(2,715,865) repayment of convertible debt and $(500,092) of deferred offering costs.
Net cash provided by financing activities for the nine months ended June 30, 2021, was $7,493,223 primarily due to cash proceeds of $4,385,000 from issuance of common stock, cash proceeds of $486,637 from PPP loan, cash proceeds of $1,000,000 from issuance of preferred stock, cash proceeds of $2,950,000 from issuance of convertible debt, offset by principal payment of $(36,078) for convertible debt, repayment of $(292,336) for stockholder loans, $(1,000,000) for shares issued for cash, $(80,134) for share issuance costs and $80,134 for reverse merger costs.
As a result of the above activities, we recorded a net decrease in cash of $(3,452,823) for the nine months ended June 30, 2022. We reported a cash balance of $709,725 at June 30, 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 $862,788 during the year ended September 30, 2020, to $1,507,246 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.
Net cash flow from financing activities
Net cash provided by financing activities during the year ended September 30, 2021, was $13,241,871 as compared to $6,093,536 for the year ended September 30, 2020. In the year ended September 30, 2021, we raised an aggregate of $9,455,233 through the sale of our common stock and warrants to purchase shares of our common stock to support and build our operations. We also issued convertible debt in the principal amount of $2,950,000 in fiscal 2021. We also received loan proceeds from the Paycheck Protection Program (“PPP”) loan program in the amount of $486,638 during the year ended September 30, 2021. During the year ended September 30, 2020, we also raised capital through the sale of our common stock, warrants and debt, including the proceeds of a PPP loan.
Future Capital Requirements
We have generated limited revenue, and as of June 30, 2022, our cash totaled $709,725, and we had an accumulated deficit of ($81,763,526). We believe that the net proceeds of this offering, together with our existing cash, will enable us to fund our operations for at least 12 months from the date of this prospectus. We have based this estimate on assumptions that may prove to be wrong, and we could use our available capital resources sooner than we expect. We anticipate that we will continue to incur net losses for the foreseeable future. However, changing circumstances may cause us to expend cash significantly faster than we currently anticipate, and we may need to spend more cash than currently expected because of circumstances beyond our control.