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 ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities:    
Net (loss) income $ (907,004) $ 79,147
Net loss attributable to noncontrolling interest (112,585) 0
Net (loss) income attributable to common stockholders (794,419) 79,147
Adjustments to reconcile net (loss) income to net cash (used) provided in operating activities:    
Net loss attributable to noncontrolling interest (112,585) 0
Deferred provision for income taxes 215,982  
Provision for bad debt 91,127  
Warranty reserves 1,326 2,135
Amortization of deferred gain (28,838)  
Depreciation and amortization 253,758 179,044
Inventory reserves (457,872) (152,647)
Amortization of debt discount 24,830 5,959
Stock-based compensation expense 35,318 24,626
Changes in operating assets and liabilities:    
Accounts receivable (111,949) 1,337,017
Inventories 430,121 (990,200)
Prepaid expenses and other current assets (340,579) (14,623)
Accounts payable (2,803,316) 550,505
Accrued expenses and other liabilities (433,714) 178,105
Net cash (used) provided in operating activities (4,030,810) 1,199,068
Cash flows from investing activities:    
Purchases of property and equipment, including capitalization of labor costs for tooling and test equipment (13,387) (51,760)
Net cash used in investing activities (13,387) (51,760)
Cash flows from financing activities:    
Proceeds from stock options exercised 54,575 14,415
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) (982,982)
Payments on related-party notes payable (163,483) (32,357)
Payments on notes payable (985,692) (151,897)
Net cash provided (used) in financing activities 12,985,327 (1,152,821)
Net change in cash and cash equivalents 8,941,130 (5,513)
Cash and cash equivalents, beginning of period 185,717 14,197
Cash and cash equivalents, end of period 9,126,847 8,684
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest 39,351 $ 44,545
Supplemental disclosure of non-cash transactions:    
Reclassification of inventory to property and equipment 384,318  
Relative 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