Stratum Holdings Corp.
For the period ended Dec 31, 2024. Filed Apr 15, 2025.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Apr 15, 2025
LRHC$0.76-15.4%Stored close · as of Oct 16, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
Consolidated Statement of Cash Flows
| For the Years Ended December 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Cash Flows from Operating Activities: | ||
| Net loss | $(14,349,996) | $(7,823,763) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Stock-based compensation | 4,730,355 | 5,100,474 |
| Amortization and depreciation | 1,018,934 | 73,134 |
| Non-cash lease expense | 561,654 | — |
| Change in fair value of derivatives | 1,338,506 | (138,985) |
| Amortization of debt discount and financing fees | 649,138 | 1,016,644 |
| Loss on extinguishment of debt | 777,558 | — |
| Impairment of goodwill | 787,438 | — |
| Noncash interest expense | 8,793 | 44,722 |
| Provision for credit losses | 82,324 | 21,201 |
| Changes in Operating Assets and Liabilities: | ||
| Accounts receivable | (174,175) | (370,831) |
| Deposits and prepaid expenses | 15,387 | 45,000 |
| Accounts payable | 1,131,817 | 307,877 |
| Accrued expenses and other | 459,952 | (239,048) |
| Contract liabilities | 7,747 | — |
| Security deposits and escrow payable | 524,854 | 69,164 |
| Operating lease liabilities | (567,593) | — |
| Net Cash Used in Operating Activities | (2,997,307) | (1,894,411) |
| Cash Flows from Investing Activities: | ||
| Purchase of property, plant and equipment | (5,033) | — |
| Cash paid for acquisitions net of cash acquired of $240,470 for acquisitions | (63,592) | (141,744) |
| Net Cash Used in Investing Activities | (68,625) | (141,744) |
| Cash Flows from Financing Activities: | ||
| Borrowings on bank line of credit | 300,508 | 331,095 |
| Payments on bank line of credit | (151,532) | (417,736) |
| Proceeds from notes payable | 3,363,228 | — |
| Payments of deferred debt issuance costs | (459,094) | — |
| Payments on notes payable | (1,027,522) | (532,163) |
| Proceeds from advances on future receipts | 1,899,250 | 500,650 |
| Payments on advances on future receipts | (1,121,368) | (679,688) |
| Payments on post-acquisition consideration | (150,000) | — |
| Distributions to noncontrolling interest | (1,377,484) | — |
| Payments related to the public offering | — | (1,765,081) |
| Payments to related party | — | (168,100) |
| Proceeds from related party | 45,413 | |
| Payments on convertible debt | — | (70,000) |
| Proceeds from issuance of preferred stock | — | 1,523,000 |
| Proceeds from issuance of common stock | 2,928,685 | 4,360,000 |
| Withholding tax paid on behalf of employees on stock based awards | (1,958) | (177,330) |
| Net Cash Provided by Financing Activities | 4,202,713 | 2,950,060 |
| Net Increase in Cash and Restricted Cash | 1,136,781 | 913,905 |
| Cash and Restricted Cash at Beginning of Period | 2,443,827 | 1,529,922 |
| Cash and Restricted Cash at End of Period | $3,580,608 | $2,443,827 |
| Supplemental Disclosures of Cash Flow Information: | ||
| Cash Paid During the Period for: | ||
| Interest | $335,425 | $129,644 |
| Taxes | $— | $— |
| Non-Cash Activities: | ||
| Derivative liability embedded in debt instruments | $269,038 | $(883,894) |
| Issuance of 2,812,382 shares of common stock as consideration of acquisitions of businesses | $3,601,272 | $— |
| Issuance of 379,428 shares of common stock as consideration of acquisitions of businesses | $377,485 | $— |
| Issuance of 1,081,030 shares of common stock as part of the issuance of notes payable | $1,076,769 | $— |
| Issuance of 1,495,769 shares of common stock for services rendered | $4,730,355 | $— |
| Issuance of 230,202 shares of common stock for accounts payable | $150,000 | $— |
| Office leases acquired under operating lease obligations | $883,652 | $— |
| Convertible debt and related party debt exchanged for 1,912 shares of Series A Convertible Preferred Stock | $— | $1,923,468 |
| Decrease in accounts payable related to deferred offering costs | $— | $(981,069) |
| Issuance of 981,676 shares of common stock for beneficial conversion feature of Series A Convertible Preferred Stock | $— | $1,472,514 |
| Issuance of 1,393,618 shares of common stock for deferred offering costs | $— | $6,968,090 |
| Issuance of 2,750,114 shares of common stock as part of the consideration of acquisitions of businesses | $— | $7,266,078 |
| Issuance of 95,000 shares of common stock as part of the repayment of notes payable | $— | $475,000 |
| Issuance of 6,566 shares of common stock upon the conversion of convertible debt upon the IPO | $— | $26,265 |
| Issuance of 819,000 shares of common stock for services rendered | $— | $1,286,180 |
| Settlement of conversion rights | $— | $433,894 |
| Reconciliation of Cash and Restricted Cash | ||
| Cash | $1,442,901 | $959,604 |
| Restricted Cash | 2,137,707 | 1,484,223 |
| Cash and Restricted Cash | $3,580,608 | $2,443,827 |
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