v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Cash flows from operating activities:    
Net loss $ (3,325,371) $ (2,118,501)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 40,762 31,023
Amortization of patents 469,356 35,364
Stock compensation 170,901 237,858
Equity (income) loss on China joint venture (115,374) 28,941
Inventory reserve 290,349
Changes in operating assets and liabilities:    
Increase in accounts receivable (304,632) (617,347)
Increase (decrease) in accounts receivable, related party (1,092,540) 2,358,200
Decrease in other receivables 10,000
Decrease in inventories 778,530 104,348
Increase to in advances on contracts (164,590) (150,604)
Decrease (increase) in prepaid expenses and other current assets (48,343) (454,562)
Increase in other assets (9,523)
Increase (decrease) in accounts payable 511,632 (355,471)
Increase (decrease) in accounts payable, related party 243,360 (853,620)
(Decrease) in deferred cost, related party (686,365) 438,925
(Decrease) increase in accrued expenses and other payables 623,014 1,007,983
Increase (decrease) in deferred revenue, related party 1,092,540 (645,400)
Net cash used in operating activities (1,516,771) (952,386)
Cash flows from investing activities:    
Purchase of intangible assets (4,531) (39,199)
Purchase of property and equipment (3,349)
Net cash used in investing activities (4,531) (42,548)
Cash flows from financing activities:    
Net proceeds on Private Placement Offering 150,836
Proceeds from exercise of stock options 62,500
Proceeds (payments) financing transaction (250,000) 125,000
Net cash provided by financing activities (250,000) 338,336
Net decrease in cash and cash equivalents (1,771,302) (656,598)
Cash and cash equivalents at beginning of period 2,636,956 3,602,229
Cash and cash equivalents at end of period 865,654 2,945,631
Supplemental disclosure of cash flow information:    
Shares issued to employees for bonuses 399,500 194,885
Shares issued to consultants in lieu of cash payments 249,749 422,249
Common stock issued for asset acquisition 286,602
Sale of Milestone China share, financing transaction $ (1,400,000) $ 1,400,000

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