v3.19.2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:    
Net loss $ (2,539,363) $ (2,526,821)
Net loss attributable to noncontrolling interest   (229,581)
Net loss attributable to common stockholders (2,539,363) (2,297,240)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Net loss attributable to noncontrolling interest   (229,581)
Deferred (benefit) provision for income taxes (544,404) 788,226
Unrealized gain on foreign currency transactions 18,743  
(Gain) on disposal of property and equipment (63,939)  
Provision for bad debt 1,358 94,431
Impairment of goodwill 1,988,701  
Warranty reserves 4,818 (2,916)
Amortization of deferred gain (32,957) (57,675)
Depreciation and amortization 886,982 528,494
Inventory reserves 136,609 244,399
Amortization of debt discount 6,266 24,830
Stock-based compensation expense 325,283 160,133
Changes in operating assets and liabilities:    
Accounts receivable 2,185,438 587,587
Inventories (2,118,771) (349,512)
Prepaid expenses and other current assets (106,591) (325,450)
Accounts payable (559,831) (2,631,811)
Accrued expenses and other liabilities 2,125,542 (382,004)
Net cash provided by (used in) operating activities 1,713,884 (3,848,089)
Cash flows from investing activities:    
Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP, (net) (1,356,975) (60,210)
Proceeds from sales of property and equipment 1,050  
Net cash used in investing activities (1,355,925) (60,210)
Cash flows from financing activities:    
Proceeds from stock options exercised 21,149 59,150
Payment of payroll taxes on net issuance of employee stock options (112,879) (274,663)
Stock issuance costs   (1,810,902)
Proceeds from issuance of common stock   19,500,000
Net borrowings (repayments) on bank lines of credit 1,028,134 (3,334,508)
Net borrowings (repayments) on related-party notes payable 932,762 (163,483)
Net borrowings (repayments) on notes payable 454,004 (985,692)
Net cash provided by financing activities 2,323,170 12,989,902
Net change in cash and cash equivalents 2,681,129 9,081,603
Effect of exchange rates on cash (8,532)  
Cash and cash equivalents, beginning of period 2,272,256 185,717
Cash and cash equivalents, end of period 4,944,853 9,267,320
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest 59,281 39,351
Cash paid during the period for income taxes 4,000  
Supplemental disclosure of non-cash transactions:    
Relative fair value of warrants issued in connection with initial public offering   669,408
Relative fair value of warrants issued in connection with notes and related-party notes payable 60,158  
Reclassification of prepaid IPO expenses to additional paid in capital   887,450
Reclassification of inventories to property and equipment $ 67,948 $ 445,366

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