Quarterly report pursuant to Section 13 or 15(d)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

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UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Cash flows from operating activities:              
Net loss $ 544,901 $ 1,141,824     $ (1,994,461) $ (1,384,997)  
Net loss attributable to noncontrolling interest   (139,466)       (369,047)  
Net income (loss) attributable to common stockholders 544,901 1,281,290 $ (2,539,363) $ (2,297,240) (1,994,461) (1,015,950)  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:              
Net loss attributable to noncontrolling interest   (139,466)       (369,047)  
Deferred benefit for income taxes         (567,257) (649,288)  
Loss on foreign currency transactions         18,647    
(Gain) loss on disposal of property and equipment         (89,168) 60,642  
Provision for bad debt 2,150 3,638     495 90,793  
Impairment of goodwill         1,988,701   $ 0
Warranty reserves         3,982 2,496  
Amortization of deferred gain         (45,316) (111,859)  
Depreciation and amortization         1,239,887 842,034  
Inventory reserves         191,012 283,634  
Amortization of debt discount 7,520 5,959     13,786 24,830  
Stock-based compensation expense 164,857 214,846     490,140 374,979  
Changes in operating assets and liabilities:              
Accounts receivable         1,220,504 (2,487,103)  
Inventories         (1,664,165) (247,131)  
Prepaid expenses and other current assets         (106,598) (308,439)  
Accounts payable         (60,607) (1,534,530)  
Accrued expenses and other liabilities         (251,235) (91,026)  
Net cash provided by (used in) operating activities         388,347 (5,134,965)  
Cash flows from investing activities:              
Cash acquired in merger           139,634  
Cash paid in acquisition of CDI           (646,759)  
Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP         (2,061,762) (80,474)  
Proceeds from sales of property and equipment         1,050 34,450  
Net cash used in investing activities         (2,060,712) (553,149)  
Cash flows from financing activities:              
Proceeds from stock options exercised         29,149 64,454  
Payment on working capital loan           (370,096)  
Payment of payroll taxes on net issuance of employee stock options         (132,017) (340,148)  
Stock issuance costs         (212,566) (1,810,902)  
Proceeds from issuance of common stock         2,700,714 19,500,000  
Net borrowings (repayments) on bank lines of credit         62,519 (3,334,508)  
Net borrowings (repayments) on related-party notes payable         837,309 (163,483)  
Net borrowings (repayments) on notes payable         374,623 (985,692)  
Net cash provided by financing activities         3,659,731 12,559,625  
Net change in cash and cash equivalents         1,987,366 6,871,511  
Effect of exchange rates on cash         (33,421)    
Cash and cash equivalents, beginning of period     $ 2,272,256 $ 185,717 2,272,256 185,717 185,717
Cash and cash equivalents, end of period $ 4,226,201 $ 7,057,228     4,226,201 7,057,228 $ 2,272,256
Supplemental disclosure of cash flow information:              
Cash paid during the period for interest         111,463 39,511  
Cash paid during the period for income taxes         4,000 2,500  
Supplemental disclosure of non-cash transactions:              
Forward foreign currency contracts         53,904    
Relative fair value of warrants issued in connection with notes and related-party notes payable         60,158    
Reclassification of inventories to property and equipment         $ 67,948    
Acquisition of CDI through issuance of common stock (Note 3)           4,194,673  
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  
Disposal of obsolete inventory           947,400  
Change in labor and overhead applied to inventory           $ 957,694