v3.20.2
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net loss attributable to common stockholders $ (1,108,194) $ (2,539,363)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Deferred benefit for income taxes (953,939) (253,097)
Unrealized gain on foreign currency transactions   18,743
Gain on disposal of property and equipment (1,542) (63,939)
(Recovery) provision for bad debt (1,411) 1,358
Impairment of goodwill   1,697,394
Warranty reserves   4,818
Amortization of deferred gain (53,838) (32,957)
Depreciation 449,159 268,411
Amortization of intangibles 349,051 618,571
Inventory reserves 210,176 136,609
Amortization of debt discount 115,990 6,266
Stock-based compensation expense 293,139 325,283
Changes in operating assets and liabilities:    
Accounts receivable 1,216,931 2,185,438
Inventories (1,769,655) (2,118,771)
Prepaid expenses and other current assets (183,698) (106,591)
Accounts payable (1,107,724) (559,831)
Accrued expenses and other liabilities (389,504) 2,125,542
Net cash (used in) provided by operating activities (2,935,059) 1,713,884
Cash flows from investing activities:    
Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP (415,582) (1,356,975)
Proceeds from sales of property and equipment 1,542 1,050
Net cash used in investing activities (414,040) (1,355,925)
Cash flows from financing activities:    
Proceeds from issuance of stock and stock options exercised 64,467 21,149
Payment of payroll taxes on net issuance of employee stock options (670,599) (112,879)
Net borrowings on bank lines of credit 49,271 1,028,134
Net (repayments) borrowings on related-party notes payable (285,320) 932,762
Net (repayments) borrowings on notes payable (86,824) 454,004
Proceeds, net of repayments, on senior secured convertible note 2,247,363  
Proceeds on Paycheck Protection Program (PPP) note payable 1,499,360  
Net cash provided by financing activities 2,817,718 2,323,170
Net change in cash and cash equivalents (531,381) 2,681,129
Effect of exchange rates on cash 662 (8,532)
Cash and cash equivalents, beginning of period 5,185,321 2,272,256
Cash and cash equivalents, end of period 4,654,602 4,944,853
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest 108,313 59,281
Cash paid during the period for income taxes 146,132 4,000
Supplemental disclosure of non-cash flow transactions:    
Original issue discount on senior secured convertible note 300,000  
Reclassification of inventories to property and equipment $ 20,027 67,948
Relative fair value of warrants issued in connection with notes and related party notes payable   $ 60,158

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