v3.19.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash flows from operating activities:    
Net loss $ (1,846,437) $ (3,325,371)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 24,993 40,762
Amortization of patents 26,506 469,356
Stock compensation 101,700 170,901
Income from earnings on China joint venture (49,100) (115,374)
Inventory reserve (2,061) 290,349
Change in fair value of derivative liability (52,722)
Amortization of right-of-use assets 79,109
Changes in operating assets and liabilities:    
Decrease (increase) in accounts receivable 319,537 (304,632)
Decrease (increase) in accounts receivable, related party 100,000 (1,092,540)
Decrease in other receivables 9,523
Decrease in inventories 652,631 778,530
Decrease (increase) in advances on contracts 118,669 (164,590)
Decrease (increase) in prepaid expenses and other current assets 7,978 (48,343)
(Decrease) increase in accounts payable (12,573) 511,632
(Decrease) increase in accounts payable, related party (380,482) 243,360
Increase (decrease) in deferred cost, related party 50,000 (686,365)
Increase in accrued expenses 284,128 623,014
Increase in accrued expenses, related party 125,428
(Decrease) increase in deferred revenue, related party (99,997) 1,092,540
Decrease in operating lease-right of use asset (79,109)
Net cash used in operating activities (622,279) (1,516,771)
Cash flows from investing activities:    
Purchase of intangible assets (4,531)
Purchase of property and equipment (8,104)
Net cash used in investing activities (8,104) (4,531)
Cash flows from financing activities:    
(Payments for) financing transaction (250,000)
Net proceeds from Public Placement Offering 1,974,547
Net proceeds from Private Placement Offering 250,000
Net cash provided by financing activities 2,224,547 (250,000)
Net increase (decrease) in cash and cash equivalents 1,594,164 (1,771,302)
Cash and cash equivalents at beginning of period 743,429 2,636,956
Cash and cash equivalents at end of period 2,337,593 865,654
Supplemental disclosure of cash flow information:    
Shares issued to employee for bonuses 61,500 399,500
Shares issue to board of directors for services rendered 37,000
Shares issued to employees for compensation 22,500
Shares issued to consultants in lieu of cash payments 180,000 249,749
Common stock issued for asset acquisition 286,602
Sale of Milestone China share, financing transaction (1,400,000)
Initial recognition of operating lease-right of use assets (166,292)
Initial recognition of operating lease right to used liabilities 166,292
Derivative liability for shares over allotment $ 1,471,585

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