Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:    
Net loss $ (3,535,980) $ (5,321,628)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 44,046 69,345
Amortization of patents 187,209 53,017
Stock compensation 530,966 1,136,430
Loss in equity investments 28,941 554,766
Changes in operating assets and liabilities:    
(Increase) in accounts receivable (1,197,252) (759,385)
Decrease in accounts receivable related party 2,001,800
Decrease in other receivable 10,000 58,140
Decrease (increase) in inventories 436,998 (225,998)
(Increase) to advances on contracts (291,342) (53,566)
Increase (Decrease) to prepaid expenses and other current assets (260,081) 27,701
(Increase) in other assets (9,523)
(Decrease) increase in accounts payable (725,170) 169,388
(Decrease) in accounts payable related party (332,711)
Increase in deferred profit, related party 257,323
Increase in accrued expenses and other payables 1,583,624 181,324
(Decrease) in deferred revenue (289,000)
Net cash used in operating activities (1,560,152) (4,119,282)
Cash flows from investing activities:    
Purchase of intangible assets (39,520) (15,616)
Purchase of property and equipment (4,749) (14,945)
Purchase of intangibles assets-Apad (153,647)
Consolidation of variable interest entity 50,621
Net cash (used in) provided by investing activities (197,916) 20,060
Cash flows from financing activities:    
Capital contribution from noncontrolling interest 2,543
Proceeds from Private Placement Offering 62,500 2,225,000
Proceed from financing transaction 250,000
Net proceeds on Private Placement Offering 150,836
Net cash provided by financing activities 463,336 2,227,543
Net decrease in cash and cash equivalents (1,294,732) (1,871,679)
Cash and cash equivalents at beginning of period 3,602,229 4,194,384
Cash and cash equivalents at end of period 2,307,497 2,322,705
Supplemental disclosure of cash flow information:    
Net assets acquired from variable entity 14,076
Shares issued to for assets acquired 2,484,354
Sale of Milestone China shares, financing transaction 1,400,000
Shares issued to employees for bonus 259,841 389,318
Shares issued to consultants in lieu of cash payments $ 422,249 $ 366,299