v3.19.1
CONSOLIDATED STATEMENTS OF CASH FLOWS
12 Months Ended
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Cash flows from operating activities:    
Net loss $ (1,572,620) $ (216,538)
Net loss attributable to noncontrolling interest (436,342) (313,158)
Net (loss) income attributable to common stockholders (1,136,278) 96,620
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Net loss attributable to noncontrolling interest (436,342) (313,158)
Deferred provision for income taxes (1,489,330) (416,614)
Disposal loss on property and equipment (Note 1) 406,049  
Provision for bad debt (2,939) (1,776)
Warranty reserves 15,088 19,005
Amortization of deferred gain (134,640) (57,675)
Depreciation and amortization 1,350,329 836,274
Inventory reserves 299,388 582,863
Amortization of debt discount 24,830 23,837
Stock-based compensation expense 527,335 160,062
Unrealized loss on forward currency contracts (18,857)  
Changes in operating assets and liabilities:    
Accounts receivable (2,563,523) (254,015)
Inventories 46,789 (1,704,134)
Prepaid expenses and other current assets (275,720) (835,350)
Accounts payable (1,460,540) 1,278,055
Accrued expenses and other liabilities 938,718 204,240
Net cash used in operating activities (3,909,643) (381,766)
Cash flows from investing activities:    
Cash acquired in acquisitions 700,865  
Proceeds from sales of property and equipment 34,450  
Purchases of property and equipment, including capitalization of labor costs for tooling and test equipment, (net) (623,166) (425,482)
Net cash used in investing activities (5,909,192) (425,482)
Cash flows from financing activities:    
Proceeds from stock options exercised 113,168 105,502
Contribution related to non-controlling interest   750,000
Payment on working capital loan (370,096)  
Payment of payroll taxes on net issuance of employee stock options (341,574)  
Stock issuance costs (1,810,902)  
Proceeds from issuance of common stock 19,500,000  
Net (repayments) borrowings on bank line of credit (4,041,243) 876,331
Payments on related-party notes payable (163,483) (134,698)
Payments on notes payable (985,692) (618,367)
Net cash provided by financing activities 11,900,178 978,768
Net change in cash and cash equivalents 2,081,343 171,520
Effect of exchange rates on cash 5,196  
Cash and cash equivalents, beginning of year 185,717 14,197
Cash and cash equivalents, end of year 2,272,256 185,717
Supplemental disclosure of cash flow information:    
Cash paid during the year for interest 41,138 167,255
Cash paid during the year for income taxes 7,626 49,508
Supplemental disclosure of non-cash transactions:    
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  
Disposal of obsolete inventory 947,400 867,538
Change in labor and overhead applied to inventory 957,694 (149,014)
Fixed assets received from SkyScale in dissolution 160,000  
Reclassification of inventories to property and equipment   645,909
Deferred revenue on gain from bargain purchase   $ 230,700
Concept Development Inc    
Cash flows from operating activities:    
Net (loss) income attributable to common stockholders (316,390)  
Cash flows from investing activities:    
Cash paid in acquisition (646,759)  
Supplemental disclosure of non-cash transactions:    
Acquisition through issuance of common stock 4,194,673  
Bressner Technology    
Cash flows from operating activities:    
Net (loss) income attributable to common stockholders 153,614  
Cash flows from investing activities:    
Cash paid in acquisition (5,374,582)  
Supplemental disclosure of non-cash transactions:    
Acquisition through issuance of common stock $ 228,779  

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