Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Cash Flows from Operating Activities      
Net Loss $ (21,875,713) $ (19,633,502) $ (19,250,082)
Non-Cash Adjustments      
Depreciation and Amortization 1,469,664 998,528 770,668
Amortization of Software Development Costs in Cost of Sales - Products 100,000 214,838 286,450
Impairment of Patents and Trademarks 0 0 20,506
Stock-Based Compensation Expense 1,788,587 1,355,522 756,928
Common Stock Awards Compensation Expense 408,894 267,750 146,050
Common Stock Issued for Services 75,000 228,750 174,026
Loss on Disposal of Fixed Assets 55,172 585 25,890
Amortization of Term Debt Discounts and Deferred Issuance Costs 0 175,260 533,430
Loss (Gain) on Derivative Valuation 13,873 (20,204) (34,744)
Impairment of Software Development Cost 196,223 0 0
(Gain) Loss on Inventory Revaluation and Product Discontinuance (211,416) 1,151,482 1,124,401
(Increase) Decrease in Operating Assets      
Accounts Receivable 201,836 (870,858) 222,380
Accrued Project Revenue 497,784 (497,784) 0
Inventories (3,429,485) (2,352,581) (426,521)
Vendor Prepayments (600,502) (10,549) 225,243
Prepaid Expenses and Other Assets (69,959) (9,288) (78,389)
Increase (Decrease) in Operating Liabilities      
Accounts Payable (846,399) 2,640,584 178,037
Accrued Expenses (26,789) 554,832 31,909
Customer Deposits 78,900 7,300 38,315
Unearned Revenue 103,902 (401,748) 440,091
Taxes Payable 26,758 (8,790) 5,217
Accrued Compensation (327,469) (321,250) 290,000
Accrued Interest (171,435) 65,417 123,231
Net Cash Flows Used in Operating Activities (22,542,574) (16,465,706) (14,396,964)
Cash Flows from Investing Activities      
Purchase of Fixed Assets (1,365,388) (1,681,258) (2,039,299)
Investments in Patents and Trademarks (444,906) (599,444) (147,004)
Investments in Licenses and Other Intangible Assets (1,250,000) 0 0
Investments in Software Development (87,500) (408,723) 0
Net Cash Used in Investing Activities (3,147,794) (2,689,425) (2,186,303)
Cash Flows from Financing Activities      
Proceeds from Exercise of Warrants 39,375 0 60,750
Repayment of Long-Term Debt and Notes Payable 0 0 (76,875)
Proceeds from Common Stock Offerings 30,000,000 21,128,502 21,112,500
Issuance Costs on Common Stock Offerings (1,975,000) (1,617,679) (1,874,485)
Proceeds from Exercise of Stock Options 0 0 18,263
Net Cash Flows from Financing Activities 28,064,375 19,510,823 19,240,153
Net Increase in Cash and Cash Equivalents 2,374,007 355,692 2,656,886
Cash and Cash Equivalents - Beginning of Year 14,889,636 14,533,944 11,877,058
Cash and Cash Equivalents - End of Year 17,263,643 14,889,636 14,533,944
Supplemental Disclosures      
Interest Paid in Cash 19,128 22,814 7,696
Non-cash Investing and Financing Activities      
Common Stock Issued for Services included in Prepaid Expenses 25,000 0 0
Investment in Other Intangible Assets included in Accrued Expenses 750,000 0 0
Conversion of Term Debt and Accrued Interest into Common Stock 0 1,861,283 342,036
Reclassification of Derivative Liability Upon Warrant Exercise 166,800 0 32,911
Receivable from Stock Option Exercise 0 0 14,820
Unamortized Common Stock Expense included in Prepaid Expenses 510,706 0 0
Cumulative Revenue Adjustment - ASC 606 Adoption 81,724 0 0
Accrued Stock-Based Compensation Expense - Not Vested $ 168,109 $ 0 $ 0