Annual report pursuant to Section 13 and 15(d)

Consolidated Statement of Cash Flows

v3.19.1
Consolidated Statement of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:    
Net loss $ (7,691,771) $ (5,369,553)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 66,604 62,474
Amortization of patents 814,681 510,676
Impairment of long lived assets 1,539,794
Stock compensation 409,021 651,413
(Income) loss on China joint venture (329,700) 120,510
Increase inventory allowance 543,545 219,834
Increase in deferred cost reserve 1,250,928
Changes in operating assets and liabilities:    
Increase in accounts receivable (442,943) (733,129)
Decrease (increase) in accounts receivable, related party (192,540) 989,150
Decrease in other receivables 10,000
Decrease in inventories 914,613 1,003,676
Decrease in advances on contracts 48,409 3,708
Decrease (increase) in prepaid expenses and other current assets 21,869 (144,481)
Decrease in other assets (9,523)
Increase (decrease) in accounts payable 227,773 (363,584)
Increase (decrease) in accounts payable, related party 678,171 (249,374)
Increase in deferred cost, related party (191,257) (489,630)
Increase in accrued expenses 620,797 1,834,749
Decrease in accrued expenses, related party (108,640)
Increase in deferred revenue, related party 192,540 723,650
Net cash used in operating activities (1,628,106) (1,229,434)
Cash flows from investing activities:    
Purchase of intangible assets (39,520)
Purchase of property and equipment (7,401) (6,008)
Acquisition of Milestone Education (8,020)
Purchase of intangibles assets-Apad (153,647)
Net cash used in investing activities (15,421) (199,175)
Cash flows from financing activities:    
(Payments) proceeds financing transaction (250,000) 250,000
Proceeds from exercise of stock options 62,500
Net proceeds on Public Placement Offering 150,836
Net cash (used in) provided by financing activities (250,000) 463,336
Net decrease in cash and cash equivalents (1,893,527) (965,273)
Cash and cash equivalents at beginning of period 2,636,956 3,602,229
Cash and cash equivalents at end of period 743,429 2,636,956
Supplemental disclosure of cash flow information:    
Shares issued to employees for compensation 45,000 194,885
Shares issued to consultants in lieu of cash payments 289,750 350,249
Deferred revenue and accounts receivable, related party adjustment 1,817,990 10,000
Shares issued for assets acquired 2,486,000
(Reversal) sale of Milestone China share, financing transaction $ (1,400,000) $ 1,150,000