Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:    
Net loss $ (2,118,501) $ (3,354,962)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 31,023 46,177
Amortization of patents 35,364 35,707
Common stock and options for compensation, consulting and vendor services 237,858 784,480
Equity method loss China joint venture 28,941 222,719
Changes in operating assets and liabilities:    
(Increase) decrease in accounts receivable (617,347) 366.982
Decrease (increase) in accounts receivable related party 2,358,200 (1,156,400)
Decrease (increase) in other receivable 10,000 (8,975)
Decrease (increase) in inventories 104,348 (233,393)
(Increase) decrease to advances on contracts (150,604) 117
Increase to prepaid expenses and other current assets (454,562) (71,240)
(Increase) decrease in other assets (9,523) 5,975
Decrease in accounts payable (355,471) (272,696)
(Decrease) increase in accounts payable related party (853,620) 680,232
Increase in deferred profit, related party 438,925
Increase (decrease) in accrued expenses and other payables 1,007,983 (67,367)
Decrease in deferred revenue (645,400)
Net cash used in operating activities (952,386) (3,022,644)
Cash flows from investing activities:    
Purchase of intangible assets (39,199) (15,616)
Purchase of property and equipment (3,349) (15,668)
Consolidation of variable interest entity 26,925
Net cash used in investing activities (42,548) (4,359)
Cash flows from financing activities:    
Capital contribution from noncontrolling interest 16,346
Proceeds from exercise of stock options 62,500
Net proceeds on Private Placement Offering 150,836 2,000,000
Proceeds from financing transaction 125,000
Net cash provided by financing activities 338,336 2,016,346
Net decrease in cash and cash equivalents (656,598) (1,010,657)
Cash and cash equivalents at beginning of period 3,602,229 4,194,384
Cash and cash equivalents at end of period 2,945,631 3,183,727
Supplemental disclosure of cash flow information:    
Net assets acquired from variable entity 6,307
Sale of Milestone China shares, financing transaction 1,400,000
Shares issued to employees for bonus 194,885 339,549
Shares issued to consultants in lieu of cash payment 422,249 75,000
Milestone China [Member]    
Adjustments to reconcile net loss to net cash used in operating activities:    
Equity method loss China joint venture $ 0 $ 164,837