Exhibit
10.1


 





 


Novo
Integrated Sciences Reports Fiscal Full Year 2021 Financial Results


 


BELLEVUE,
Wash., December 14, 2021 - Novo Integrated Sciences, Inc. (NASDAQ:NVOS) (the “Company” or “Novo”), pioneering
a holistic approach to patient-first health and wellness through a multidisciplinary healthcare ecosystem of services and product innovation,
today reported its financial results for the fiscal year ended August 31, 2021.


 


“This
has been a transformative year for Novo. We have invested in several undervalued assets that collectively are core to our differentiated
platform solution for healthcare delivery that puts the patient-first. In addition, the Company invested in the necessary human capital
required to commercialize our technology offerings, as well as many of our product solutions,” stated Robert Mattacchione, the
Company’s CEO and Board Chairman. “We have strategically made investments in Acenzia, PRO-DIP, EK-Tech Solutions, Terragenx,
and brick and mortar pharmacy locations, each of which complements our organic operations. This diverse patient offering of products
and services will be overlaid on Novo Connect, our sophisticated and secure mobile application, to provide data to patients in real time.
We look forward to the official launch of NovoConnect in early 2022 and making further investments in the healthcare space by expanding
into new jurisdictions both in North America and overseas.”


 


Financial
Highlights for the Fiscal Year Ended August 31, 2021:


 


	 	●	As
    of August 31, 2021, the Company’s cash and cash equivalents were $8.3 million, total assets were $61.9 million, total liabilities
    were $18.2 million, and stockholders’ equity was $43.9 million.
	 	 	 
	 	●	Revenues
    for the fiscal year ended August 31, 2021 were $9.3 million, representing an increase of $1.4 million, or 17.7%, from $7.9
    million for the same period in 2020, principally due to periodic easing of COVID pandemic-related restrictions and approximately
    $0.4 million of revenue from Acenzia from the date of acquisition (June 24, 2021) through August 31, 2021.
	 	 	 
	 	●	Net
    loss attributed to Novo Integrated Sciences, Inc. for the year ended August 31, 2021 was $4,462,147, representing a decrease
    of $453,007, or 9.2%, from $4,915,154 for the same period in 2020. The decrease in net loss is principally due to (i) an increase
    in revenues and gross profit offset by additional operating costs associated with the Acenzia acquisition, (ii) an increase in amortization
    of intangible assets, (iii) common stock issued for services including successful uplist to the Nasdaq Capital Markets, (iv) salary
    expense due to hiring of senior level executives, and (v) legal fees related to the Company’s Nasdaq listing and filing of
    the Company’s registration statement on Form S-3.


 


Operational
Milestones to Date:


 


	 	●	Signed
    letter of intent to acquire seven pharmacies in the United States that collectively generated $55 million in annualized sales in
    2020.
	 	 	 
	 	●	Acquired
    majority stake in Terragenx and intellectual property for FDA and Health Canada approved water-soluble iodine micro-nutrient in an
    all-share transaction priced at $3.35 per share.
	 	 	 
	 	●	Completed
    acquisition of Acenzia, a company that provides nutraceutical health solutions through advanced bio-science research and development,
    proprietary manufacturing, and personalized diagnostics in an all-share transaction at $3.91 per share.
	 	 	 
	 	●	Completed
    the acquisition of PRO-DIP, a company that has developed an innovative, patent-pending oral pouch delivery system technology which
    allows for broad market applications related to nutritionally focused products and medicinal based formulations in an all-share transaction
    at $3.98 per share.
	 	 	 
	 	●	Announced
    joint venture with EK-Tech Solutions for enhanced telehealth platform.


 




    	 



    	 



    

 


Corporate
Highlights for the Fiscal Year Ended August 31, 2021:


 


	 	●	Uplisted
    to the Nasdaq Capital Market in February 2021.
	 	 	 
	 	●	Closed
    on a registered direct offering of approximately $8 million at $3.35 per share.
	 	 	 
	 	●	Appointed
    Dr. Indrajit (Indra) Sinha, Ph.D. as Chief Scientific Officer.
	 	 	 
	 	●	Formed
    a Medical Advisory Board comprised of Dr. Joseph M. Chalil, Dr. Michael G. Muhonen, and Dr. Zach P. Zachariah to provide important
    insight and expertise as the Company expands its personalized consumer engagement across all aspects of the patient/practitioner
    relationship through the integration of medical technology, advanced therapeutics, and rehabilitative sciences.
	 	 	 
	 	●	Appointed
    new President and senior leadership for Novo Healthnet Limited, Novo’s wholly owned subsidiary.
	 	 	 
	 	●	Increased
    size of Board of Directors from 4 to 7 members and appointed Michael Pope, Robert Oliva, and Alex Flesias as independent directors.
	 	 	 
	 	●	Formed
    Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee.


 


About
Novo Integrated Sciences, Inc.


 


Novo
Integrated Sciences, Inc. is pioneering a holistic approach to patient-first health and wellness through a multidisciplinary healthcare
ecosystem of services and product innovation. Novo offers an essential and differentiated solution to deliver, or intend to deliver,
these services and products through the integration of medical technology, advanced therapeutics, and rehabilitative science.


 


We
believe that “decentralizing” healthcare, through the integration of medical technology and interconnectivity, is an essential
solution to the rapidly evolving fundamental transformation of how non-catastrophic healthcare is delivered both now and in the future.
Specific to non-critical care, ongoing advancements in both medical technology and inter-connectivity are allowing for a shift of the
patient/practitioner relationship to the patient’s home and away from on-site visits to primary medical centers with mass-services.
This acceleration of “ease-of-access” in the patient/practitioner interaction for non-critical care diagnosis and subsequent
treatment minimizes the degradation of non-critical health conditions to critical conditions as well as allowing for more cost-effective
healthcare distribution.


 


The
Company’s decentralized healthcare business model is centered on three primary pillars to best support the transformation of non-catastrophic
healthcare delivery to patients and consumers:


 


	 	●	First
    Pillar: Service Networks. Deliver multidisciplinary primary care services through (i) an affiliate network of clinic facilities,
    (ii) small and micro footprint sized clinic facilities primarily located within the footprint of box-store commercial enterprises,
    (iii) clinic facilities operated through a franchise relationship with the Company, and (iv) corporate operated clinic facilities.
	 	 	 
	 	●	Second
    Pillar: Technology. Develop, deploy, and integrate sophisticated interconnected technology, interfacing the patient to the healthcare
    practitioner thus expanding the reach and availability of the Company’s services, beyond the traditional clinic location, to
    geographic areas not readily providing advanced, peripheral based healthcare services, including the patient’s home.
	 	 	 
	 	●	Third
    Pillar: Products. Develop and distribute effective, personalized health and wellness product solutions allowing for the customization
    of patient preventative care remedies and ultimately a healthier population. The Company’s science-first approach to product
    innovation further emphasizes our mandate to create and provide over-the-counter preventative and maintenance care solutions.


 




    	 



    	 



    

 


Innovation
through science combined with the integration of sophisticated, secure technology assures Novo Integrated Sciences of continued cutting
edge advancement in patient first platforms.


 


For
more information concerning Novo Integrated Sciences, please visit www.novointegrated.com . For more information on NHL,
please visit www.novohealthnet.com


 


Twitter,
LinkedIn, Facebook, Instagram, YouTube


 


Forward-Looking Statements


 


This
press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press
release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believe,”
“intend,” “expect,” “anticipate,” “plan,” “potential,” “continue”
or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause
actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks and uncertainties
are discussed in Novo’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking
statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond Novo’s control
which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking
statement reflects Novo’s current views with respect to future events and is subject to these and other risks, uncertainties and
assumptions relating to operations, results of operations, growth strategy and liquidity. Novo assumes no obligation to publicly update
or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website
referenced in this press release are not incorporated by reference herein.


 


Chris
David, COO-President


Novo
Integrated Sciences, Inc.


chris.david@novointegrated.com


(888)
512-1195


 




    	 



    	 



    

 


NOVO
INTEGRATED SCIENCES, INC.


CONSOLIDATED
BALANCE SHEETS


As
of August 31, 2021 and 2020


 


	 	 	August 31,	 	 	August 31,	 
	 	 	2021	 	 	2020	 
	 	 	 	 	 	 	 
	ASSETS	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Current Assets:	 	 	 	 	 	 	 	 
	Cash and cash equivalents	 	$	8,293,162	 	 	$	2,067,718	 
	Accounts receivable, net	 	 	1,468,429	 	 	 	1,732,432	 
	Inventory	 	 	339,385	 	 	 	-	 
	Other receivables, current portion	 	 	814,157	 	 	 	302,664	 
	Prepaid expenses and other current assets	 	 	218,376	 	 	 	191,723	 
	Total current assets	 	 	11,133,509	 	 	 	4,294,537	 
	 	 	 	 	 	 	 	 	 
	Property and equipment, net	 	 	6,070,291	 	 	 	353,660	 
	Intangible assets, net	 	 	32,436,468	 	 	 	26,623,448	 
	Right-of-use assets, net	 	 	2,543,396	 	 	 	2,810,556	 
	Other receivables, net of current portion	 	 	692,738	 	 	 	287,775	 
	Acquisition deposits	 	 	-	 	 	 	383,700	 
	Goodwill	 	 	9,081,879	 	 	 	636,942	 
	TOTAL ASSETS	 	$	61,958,281	 	 	$	35,390,618	 
	 	 	 	 	 	 	 	 	 
	LIABILITIES AND STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Current Liabilities:	 	 	 	 	 	 	 	 
	Accounts payable	 	$	1,449,784	 	 	$	883,773	 
	Accrued expenses	 	 	1,129,309	 	 	 	194,708	 
	Accrued interest (principally to related parties)	 	 	366,280	 	 	 	346,264	 
	Government loans and notes payable, current portion	 	 	4,485,649	 	 	 	83,292	 
	Due to related parties	 	 	478,920	 	 	 	528,213	 
	Finance lease liability, current portion	 	 	23,184	 	 	 	-	 
	Operating lease liability, current portion	 	 	530,797	 	 	 	563,793	 
	Total current liabilities	 	 	8,463,923	 	 	 	2,600,043	 
	 	 	 	 	 	 	 	 	 
	Debentures, related parties	 	 	982,205	 	 	 	952,058	 
	Notes payable, net of current portion	 	 	5,133,604	 	 	 	-	 
	Finance lease liability, net of current portion	 	 	16,217	 	 	 	-	 
	Operating lease liability, net of current portion	 	 	2,057,805	 	 	 	2,266,887	 
	Deferred tax liability	 	 	1,500,372	 	 	 	-	 
	TOTAL LIABILITIES	 	 	18,154,126	 	 	 	5,818,988	 
	 	 	 	 	 	 	 	 	 
	Commitments and contingencies	 	 	-	 	 	 	-	 
	 	 	 	 	 	 	 	 	 
	STOCKHOLDERS’ EQUITY	 	 	 	 	 	 	 	 
	Novo Integrated Sciences, Inc.	 	 	 	 	 	 	 	 
	Convertible preferred stock; $0.001 par value; 1,000,000 shares authorized; 0 and 0 shares issued and outstanding at August 31, 2021 and 2020, respectively	 	 	-	 	 	 	-	 
	Common stock; $0.001 par value; 499,000,000 shares authorized; 26,610,144 and 23,466,236 shares issued and outstanding at August 31, 2021 and 2020, respectively	 	 	26,610	 	 	 	23,466	 
	Additional paid-in capital	 	 	54,579,396	 	 	 	44,905,454	 
	Common stock to be issued (3,622,199 shares)	 	 	9,236,607	 	 	 	-	 
	Other comprehensive income	 	 	991,077	 	 	 	1,199,696	 
	Accumulated deficit	 	 	(20,969,274	)	 	 	(16,507,127	)
	Total Novo Integrated Sciences, Inc. stockholders’ equity	 	 	43,864,416	 	 	 	29,621,489	 
	Noncontrolling interest	 	 	(60,261	)	 	 	(49,859	)
	Total stockholders’ equity	 	 	43,804,155	 	 	 	29,571,630	 
	TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	 	$	61,958,281	 	 	$	35,390,618	 



 




    	 



    	 



    

 


NOVO
INTEGRATED SCIENCES, INC.


CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


For
the Years Ended August 31, 2021 and 2020


 


	 	 	Years Ended	 
	 	 	August 31,	 	 	August 31,	 
	 	 	2021	 	 	2020	 
	 	 	 	 	 	 	 
	Revenues	 	$	9,305,255	 	 	$	7,860,567	 
	 	 	 	 	 	 	 	 	 
	Cost of revenues	 	 	5,482,257	 	 	 	4,802,195	 
	 	 	 	 	 	 	 	 	 
	Gross profit	 	 	3,822,998	 	 	 	3,058,372	 
	 	 	 	 	 	 	 	 	 
	Operating expenses:	 	 	 	 	 	 	 	 
	Selling expenses	 	 	7,525	 	 	 	4,921	 
	General and administrative expenses	 	 	8,089,641	 	 	 	7,286,305	 
	Write down of assets	 	 	99,351	 	 	 	29,744	 
	Total operating expenses	 	 	8,196,517	 	 	 	7,320,970	 
	 	 	 	 	 	 	 	 	 
	Loss from operations	 	 	(4,373,519	)	 	 	(4,262,598	)
	 	 	 	 	 	 	 	 	 
	Non operating income (expense)	 	 	 	 	 	 	 	 
	Interest income	 	 	45,687	 	 	 	33,627	 
	Interest expense	 	 	(165,003	)	 	 	(156,662	)
	Other income (expense)	 	 	21,900	 	 	 	(194,055	)
	Write off of acquisition deposit	 	 	-	 	 	 	(344,521	)
	Total other income (expense)	 	 	(97,416	)	 	 	(661,611	)
	 	 	 	 	 	 	 	 	 
	Loss before income taxes	 	 	(4,470,935	)	 	 	(4,924,209	)
	 	 	 	 	 	 	 	 	 
	Income tax expense	 	 	-	 	 	 	-	 
	 	 	 	 	 	 	 	 	 
	Net loss	 	$	(4,470,935	)	 	$	(4,924,209	)
	 	 	 	 	 	 	 	 	 
	Net loss attributed to noncontrolling interest	 	 	(8,788	)	 	 	(9,055	)
	 	 	 	 	 	 	 	 	 
	Net loss attributed to Novo Integrated Sciences, Inc.	 	$	(4,462,147	)	 	$	(4,915,154	)
	 	 	 	 	 	 	 	 	 
	Comprehensive loss:	 	 	 	 	 	 	 	 
	Net loss	 	 	(4,470,935	)	 	 	(4,924,209	)
	Foreign currency translation  (loss) gain	 	 	(208,619	)	 	 	60,777	 
	Comprehensive loss:	 	$	(4,679,554	)	 	$	(4,863,432	)
	 	 	 	 	 	 	 	 	 
	Weighted average common shares outstanding - basic and diluted	 	 	24,774,454	 	 	 	23,034,081	 
	 	 	 	 	 	 	 	 	 
	Net loss per common share - basic and diluted	 	$	(0.18	)	 	$	(0.21	)



 




    	 



    	 



    

 


NOVO
INTEGRATED SCIENCES, INC.


CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ EQUITY


For
the Years Ended August 31, 2021 and 2020


 


	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Additional	 	 	Common	 	 	Other	 	 	 	 	 	Novo	 	 	 	 	 	 	 
	 	 	Common
    Stock	 	 	Paid-in	 	 	Stock
    To	 	 	Comprehensive	 	 	Accumulated	 	 	Stockholders’	 	 	Noncontrolling	 	 	Total	 
	 	 	Shares	 	 	Amount	 	 	Capital	 	 	Be
    Issued	 	 	Income	 	 	Deficit	 	 	Equity	 	 	Interest	 	 	Equity	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance,
    August 31, 2019	 	 	22,369,150	 	 	$	22,369	 	 	$	36,014,525	 	 	$	-	 	 	$	1,138,919	 	 	$	(11,591,973	)	 	$	25,583,840	 	 	$	(39,632	)	 	 	25,544,208	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Common
    stock issued for cash	 	 	35,437	 	 	 	35	 	 	 	113,364	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	113,399	 	 	 	-	 	 	 	113,399	 
	Common
    stock issued for licensing agreement	 	 	800,000	 	 	 	800	 	 	 	5,247,200	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	5,248,000	 	 	 	-	 	 	 	5,248,000	 
	Common
    stock issued for software license	 	 	96,558	 	 	 	97	 	 	 	386,134	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	386,231	 	 	 	-	 	 	 	386,231	 
	Common
    stock issued for conversion of related party debt	 	 	15,091	 	 	 	15	 	 	 	226,348	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	226,363	 	 	 	-	 	 	 	226,363	 
	Common
    stock issued for services	 	 	150,000	 	 	 	150	 	 	 	589,850	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	590,000	 	 	 	-	 	 	 	590,000	 
	Fair
    value of modification of stock option terms	 	 	-	 	 	 	-	 	 	 	62,822	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	62,822	 	 	 	-	 	 	 	62,822	 
	Fair
    value of stock options	 	 	-	 	 	 	-	 	 	 	2,265,211	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	2,265,211	 	 	 	-	 	 	 	2,265,211	 
	Foreign
currency translation gain
	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	60,777	 	 	 	 	 	 	 	60,777	 	 	 	(1,172	)	 	 	59,605	 
	Net
    loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(4,915,154	)	 	 	(4,915,154	)	 	 	(9,055	)	 	 	(4,924,209	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance,
    August 31, 2020	 	 	23,466,236	 	 	 	23,466	 	 	 	44,905,454	 	 	 	-	 	 	 	1,199,696	 	 	 	(16,507,127	)	 	 	29,621,489	 	 	 	(49,859	)	 	 	29,571,630	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Common
    stock issued for cash, net of offering costs	 	 	2,409,955	 	 	 	2,410	 	 	 	7,325,170	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	7,327,580	 	 	 	-	 	 	 	7,327,580	 
	Common
    stock for services	 	 	295,700	 	 	 	295	 	 	 	874,878	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	875,173	 	 	 	-	 	 	 	875,173	 
	Common
    stock issued for acquisition	 	 	189,796	 	 	 	190	 	 	 	430,647	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	430,837	 	 	 	-	 	 	 	430,837	 
	Common
    stock issued for intellectual property	 	 	240,000	 	 	 	240	 	 	 	875,760	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	876,000	 	 	 	-	 	 	 	876,000	 
	Common
    stock to be issued for purchase of Acenzia, Inc.	 	 	-	 	 	 	-	 	 	 	-	 	 	 	9,236,607	 	 	 	-	 	 	 	-	 	 	 	9,236,607	 	 	 	-	 	 	 	9,236,607	 
	Exercise
    of stock options	 	 	7,500	 	 	 	8	 	 	 	11,992	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	12,000	 	 	 	-	 	 	 	12,000	 
	Fair
    value of stock options	 	 	-	 	 	 	-	 	 	 	155,496	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	155,496	 	 	 	-	 	 	 	155,496	 
	Rounding
    due to stock split	 	 	957	 	 	 	1	 	 	 	(1	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 
	Foreign
    currency translation loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(208,619	)	 	 	-	 	 	 	(208,619	)	 	 	(1,614	)	 	 	(210,233	)
	Net
    loss	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(4,462,147	)	 	 	(4,462,147	)	 	 	(8,788	)	 	 	(4,470,935	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Balance,
    August 31, 2021	 	 	26,610,144	 	 	$	26,610	 	 	$	54,579,396	 	 	$	9,236,607	 	 	$	991,077	 	 	$	(20,969,274	)	 	$	43,864,416	 	 	$	(60,261	)	 	$	43,804,155	 



 




    	 



    	 



    

 


NOVO
INTEGRATED SCIENCES, INC.


CONSOLIDATED
STATEMENTS OF CASH FLOWS


For
the Years Ended August 31, 2021 and 2020


 


	 	 	Years Ended	 
	 	 	August 31,	 	 	August 31,	 
	 	 	2021	 	 	2020	 
	 	 	 	 	 	 	 
	CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 
	Net loss	 	$	(4,470,935	)	 	$	(4,924,209	)
	Adjustments to reconcile net loss to  net cash used in operating activities:	 	 	 	 	 	 	 	 
	Depreciation and amortization	 	 	1,724,122	 	 	 	1,445,076	 
	Fair value of vested stock options	 	 	155,496	 	 	 	2,265,211	 
	Expense associated with modified stock option terms	 	 	-	 	 	 	62,822	 
	Common stock issued for services	 	 	875,173	 	 	 	590,000	 
	Operating lease expense	 	 	642,991	 	 	 	541,530	 
	Gain on forgiveness of debt	 	 	(21,900	)	 	 	-	 
	Write down of assets	 	 	99,351	 	 	 	29,744	 
	Loss on settlement of other receivable	 	 	-	 	 	 	74,360	 
	Write off of acquisition deposit	 	 	-	 	 	 	344,521	 
	Changes in operating assets and liabilities:	 	 	 	 	 	 	 	 
	Accounts receivable	 	 	1,103,800	 	 	 	(229,015	)
	Inventory	 	 	(147,814	)	 	 	-	 
	Prepaid expenses and other current assets	 	 	(43,194	)	 	 	61,218	 
	Accounts payable	 	 	(45,228	)	 	 	(275,895	)
	Accrued expenses	 	 	(287,034	)	 	 	(15,591	)
	Accrued interest	 	 	9,015	 	 	 	114,815	 
	Operating lease liability	 	 	(618,645	)	 	 	(526,281	)
	Net cash used in operating activities	 	 	(1,024,802	)	 	 	(441,694	)
	 	 	 	 	 	 	 	 	 
	CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 
	Purchase of property and equipment	 	 	(255,949	)	 	 	(12,110	)
	Cash paid for acquisition	 	 	(10,000	)	 	 	-	 
	Cash acquired with acquisition	 	 	3,738,171	 	 	 	-	 
	Amounts loaned for other receivables	 	 	(473,100	)	 	 	-	 
	Payment for acquisition deposit	 	 	-	 	 	 	(636,985	)
	Return of acquisition deposit	 	 	-	 	 	 	636,985	 
	Collection of other receivable	 	 	-	 	 	 	669,240	 
	Net cash provided by investing activities	 	 	2,999,122	 	 	 	657,130	 
	 	 	 	 	 	 	 	 	 
	CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 
	Repayments to related parties	 	 	(246,327	)	 	 	(198,778	)
	Repayments of debenture, related party	 	 	-	 	 	 	(267,696	)
	Repayments of notes payable	 	 	(2,767,519	)	 	 	-	 
	Repayments of finance leases	 	 	(8,872	)	 	 	-	 
	Proceeds from government loans and note payable	 	 	-	 	 	 	81,388	 
	Proceeds from the sale of common stock, net of offering costs	 	 	7,327,580	 	 	 	113,399	 
	Proceeds from exercise of stock options	 	 	12,000	 	 	 	-	 
	Net cash provided by (used in) financing activities	 	 	4,316,862	 	 	 	(271,687	)
	 	 	 	 	 	 	 	 	 
	Effect of exchange rate changes on cash and cash equivalents	 	 	(65,738	)	 	 	40,303	 
	 	 	 	 	 	 	 	 	 
	NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	 	 	6,225,444	 	 	 	(15,948	)
	 	 	 	 	 	 	 	 	 
	CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	 	 	2,067,718	 	 	 	2,083,666	 
	 	 	 	 	 	 	 	 	 
	CASH AND CASH EQUIVALENTS, END OF YEAR	 	$	8,293,162	 	 	$	2,067,718	 
	 	 	 	 	 	 	 	 	 
	CASH PAID FOR:	 	 	 	 	 	 	 	 
	Interest	 	$	144,987	 	 	$	95,219	 
	Income taxes	 	$	-	 	 	$	-	 
	 	 	 	 	 	 	 	 	 
	SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 
	Common stock issued for intangible assets	 	$	876,000	 	 	$	5,634,231	 
	Common stock issued for debt	 	$	-	 	 	$	226,363	 
	Common stock issued for acquisition	 	$	430,837	 	 	$	-