Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (7,729,937) $ (3,535,980)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 53,675 44,046
Amortization of patents 801,426 187,209
Impairment to long lived assets 1,539,794
Stock compensation 247,425 530,966
Inventory reserve 728,017
Deferred cost reserve 790,189
Changes in operating assets and liabilities:    
Decrease (increase) in accounts receivable 521,347 (1,197,252)
Decrease in accounts receivable, related party 466,455 2,001,800
Decrease in other receivables 10,000
Decrease in inventories 405,234 436,998
Increase in advances on contracts (187,631) (291,342)
Increase in prepaid expenses and other current assets (9,854) (260,081)
Increase in other assets (9,523)
Increase (decrease) in accounts payable 328,900 (725,170)
Increase (decrease) in accounts payable, related party 467,352 (332,711)
(Decrease) Increase in deferred cost, related party (470,708) 257,323
Increase in accrued expenses 859,677 1,583,624
Decrease in accrued expenses, related party (43,892)
Decrease in deferred revenue, related party (466,455) (289,000)
Net cash used in operating activities (1,957,602) (1,560,152)
Cash flows from investing activities:    
Purchase of intangible assets (39,520)
Purchase of property and equipment (6,505) (4,749)
Acquisition of Milestone Education (8,020)
Purchase of intangibles assets-Apad (153,647)
Net cash used in investing activities (14,525) (197,916)
Cash flows from financing activities:    
Proceeds (payments) financing transaction (250,000) 250,000
Proceeds from exercise of stock options 62,500
Net proceeds on Private Placement Offering 150,836
Net cash (used in) provided by financing activities (250,000) 463,336
Net decrease in cash and cash equivalents (2,222,127) (1,294,732)
Cash and cash equivalents at beginning of period 2,636,956 3,602,229
Cash and cash equivalents at end of period 414,829 2,307,497
Supplemental disclosure of cash flow information:    
Shares issued to employees for bonuses 47,401 259,841
Shares issued to consultants in lieu of cash payments 350,103 422,249
Shares issued for assets acquired 2,484,354
Sale of Milestone China share, financing transaction (1,400,000) 1,400,000
China Joint Venture [Member]    
Adjustments to reconcile net loss to net cash used in operating activities:    
Equity (income) loss on China joint venture $ (258,616) $ 28,941