Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net (loss) income $ (2,526,821) $ 213,931
Net loss attributable to noncontrolling interest (229,581) (122,526)
Net (loss) income attributable to common stockholders (2,297,240) 336,457
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Net loss attributable to noncontrolling interest (229,581) (122,526)
Deferred provision for income taxes 788,226  
Provision for bad debt 94,431 (453)
Warranty reserves (2,916)  
Amortization of deferred gain (57,675)  
Depreciation and amortization 528,494 381,613
Inventory reserves 244,399 (82,641)
Amortization of debt discount 24,830 11,918
Stock-based compensation expense 160,133 60,630
Changes in operating assets and liabilities:    
Accounts receivable 587,587 (140,910)
Inventories (349,512) (1,962,360)
Prepaid expenses and other current assets (325,450) (82,231)
Accounts payable (2,631,811) 1,002,594
Accrued expenses and other liabilities (382,004) 324,799
Net cash used in operating activities (3,848,089) (273,110)
Cash flows from investing activities:    
Purchases of property and equipment, including capitalization of labor costs for tooling and test equipment (60,210) (13,971)
Net cash used in investing activities (60,210) (13,971)
Cash flows from financing activities:    
Proceeds from stock options exercised 59,150 93,906
Contribution related to non-controlling interest   750,000
Net borrowings on bank line of credit   252,665
Payment of payroll taxes on net issuance of employee stock options (274,663)  
Stock issuance costs (1,810,902)  
Proceeds from issuance of common stock 19,500,000  
Net repayments on bank line of credit (3,334,508)  
Payments on related-party notes payable (163,483) (65,473)
Payments on notes payable (985,692) (305,607)
Net cash provided by financing activities 12,989,902 725,491
Net change in cash and cash equivalents 9,081,603 438,410
Cash and cash equivalents, beginning of period 185,717 14,197
Cash and cash equivalents, end of period 9,267,320 452,607
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest 39,351 80,455
Supplemental disclosure of non-cash transactions:    
Reclassification of inventory to property and equipment 445,366 $ 429,931
Fair value of warrants issued in connection with initial public offering 669,408  
Reclassification of prepaid IPO expenses to additional paid in capital $ 887,450