v3.19.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:    
Net loss $ (4,696,358) $ (7,729,937)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 37,159 53,675
Amortization of patents 39,760 801,426
Impairment to long lived assets 1,539,794
Stock compensation 146,847 247,425
Income from earnings on China joint venture (49,100) (258,616)
Inventory reserve 728,017
Deferred cost reserve 790,189
Change in fair value of derivative liability 1,846,761
Amortization of right-of-use assets 117,121
Changes in operating assets and liabilities:    
Decrease in accounts receivable 739,195 521,347
Decrease in accounts receivable, related party 100,000 466,455
Increase in other receivables (9,027)
Decrease in inventories 303,989 405,234
Decrease (increase) in advances on contracts 20,289 (187,631)
Increase in prepaid expenses and other current assets (90,362) (9,854)
(Decrease) increase in accounts payable (465,670) 328,900
(Decrease) increase in accounts payable, related party (109,989) 467,352
Increase (decrease) in deferred cost, related party 50,000 (470,708)
Increase in accrued expenses (50,424) 859,677
Increase in accrued expenses, related party 1,011,245 (43,892)
Decrease in operating lease-right of use asset (117,122)
(Decrease) increase in deferred revenue, related party (100,000) (466,455)
Net cash used in operating activities (1,275,686) (1,957,602)
Cash flows from investing activities:    
Purchase of property and equipment (9,916) (6,505)
Acquisition of Milestone Education (8,020)
Net cash used in investing activities (9,916) (14,525)
Cash flows from financing activities:    
Payments for financing transaction (250,000)
Proceeds from exercise of warrants 28,875
Net proceeds from Public Placement Offering 1,974,547
Net proceeds from Private Placement Offering 250,000
Net cash provided by financing activities 2,253,422 (250,000)
Net increase (decrease) in cash and cash equivalents 967,820 (2,222,127)
Cash and cash equivalents at beginning of period 743,429 2,636,956
Cash and cash equivalents at end of period 1,711,249 414,829
Supplemental non-cash disclosure of cash flow information:    
Shares issued to employee for bonuses 211,500 47,401
Shares issued to board of directors for services rendered 67,000
Shares issued to employees for compensation 37,500
Shares issued to consultants in lieu of cash payments 416,500 350,103
Sale of Milestone China share, financing transaction (1,400,000)
Credit from United Systems for defective handpieces (151,562)
Initial recognition of operating lease-right of use assets (166,292)
Initial recognition of operating lease right to used liabilities $ 166,292

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