v3.19.1
Condensed Consolidated Balance Sheets - USD ($)
Mar. 31, 2019
Dec. 31, 2018
Current Assets    
Cash $ 2,683,146 $ 4,119,058
Accounts receivable, net 1,356,229 2,051,329
Inventory 147,615 62,792
Prepaid expenses and other current assets 148,689 110,653
Total Current Assets 4,335,679 6,343,832
Non-Current Assets    
Intangibles, net 6,992,677 7,048,923
Plant and equipment, net 2,265,712 1,982,845
Right of use assets, operating leases, net of accumulated amortization 22,285
Deposits 239,987 239,987
Total Non-Current Assets 9,520,661 9,271,755
Total Assets 13,856,340 15,615,587
Current Liabilities    
Accounts payable 1,907,254 1,721,812
Other payables and accrued expenses 860,636 922,457
Deferred revenue 4,673,544 5,090,210
Deferred purchase consideration 2,600,000 2,450,000
Bridge notes payable 272,098 254,641
Finance lease liability 380,995 49,952
Operating lease liability 21,038
Accrued interest 207,765 224,475
Dividends payable 307,704 224,855
Total Current Liabilities 11,231,034 10,938,402
Non-Current Liabilities    
Deferred purchase consideration, net 5,947,316 6,131,739
Finance lease liability 328,323 18,861
Operating lease liability 1,247
Term loan payable, net 12,869,827 12,705,696
Derivative liability 5,408,866 5,178,598
Total Non-Current Liabilities 24,555,579 24,034,894
Total Liabilities 35,786,613 34,973,296
Commitment and contingencies
Stockholders' Deficit    
Preferred stock, $0.001 par value, 10,000,000 authorized, 400,000 shares designated as Series A Preferred Stock and unissued, 3,000,000  shares designated as Series B Preferred stock and unissued, 1,142,856 shares designated as Series C Preferred Stock and 5,457,144 undesignated and unissued
Series C Preferred Stock, $0.001 par value, 1,142,856 shares authorized, 799,989 shares issued and outstanding as of March 31, 2019 and December 31, 2018 (Liquidation preference $4,199,942) 800 800
Common stock, $0.001 par value; 50,000,000 shares authorized, 6,720,107 shares issued and 6,393,107 outstanding as of March 31, 2019 and December 31, 2018. 6,392 6,392
Additional paid-in-capital 27,921,036 27,657,098
Treasury stock, at cost (327,000 shares of common stock as of March 31, 2019 and December 31, 2018) (237) (237)
Accumulated deficit (49,858,264) (47,021,762)
Total Stockholder's Deficit (21,930,273) (19,357,709)
Total Liabilities and Stockholders' Deficit $ 13,856,340 $ 15,615,587

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v3.19.1
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Statement [Abstract]    
Revenues $ 3,460,511 $ 3,081,149
Cost of goods sold 2,042,987 2,649,315
Gross profit 1,417,524 431,834
Operating expenses:    
Selling, general and administrative expenses 2,649,159 2,992,321
Depreciation 460,664 457,456
Amortization 56,246 56,246
Total Operating expenses 3,166,069 3,506,023
Operating loss (1,748,545) (3,074,189)
Other income (expense)    
Other income 6,384
Interest expense (774,840) (759,722)
Derivative liability movement (230,268) 95,086
Total other expense (1,005,108) (658,252)
Net loss before income tax (2,753,653) (3,732,441)
Income tax
Net loss (2,753,653) (3,732,441)
Preferred stock dividend (82,849)  
Net loss available to common stockholders $ (2,836,502) $ (3,732,441)
Net Loss Per Share - Basic and Diluted $ (0.44) $ (0.58)
Weighted Average Number of Shares Outstanding -Basic and Diluted 6,393,107 6,393,107

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v3.19.1
Condensed Consolidated Statements of Cash Flows - USD ($)
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (2,753,653) $ (3,732,441)
Adjustment to reconcile net loss to net cash used in operating activities:    
Depreciation expense 460,664 457,456
Amortization expense 56,246 56,246
Stock based compensation charge 263,938 153,908
Amortization of debt discount 176,269 335,385
Derivative liability movements 230,268 (95,086)
Imputed interest on deferred purchase consideration 65,577 74,769
Changes in operating assets and liabilities    
Accounts receivable 695,100 196,320
Inventory (84,823) (37,871)
Prepaid expenses and other current assets (38,036) 16,161
Right of use asset 37,397  
Accounts payable 185,442 670,934
Deferred revenues (416,667)
Operating lease liability (37,397)
Other payables and accrued expenses (77,493) 79,832
CASH USED IN OPERATING ACTIVITIES (1,237,168) (1,824,387)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Payment of deferred purchase consideration (100,000)
Purchase of plant and equipment (743,531) (279,665)
NET CASH USED IN INVESTING ACTIVITIES (843,531) (279,665)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Refund of capital raising fee 5,319
Proceeds from Series C Preferred Stock 500,000
Proceeds from loans payable 655,133
Repayment of loans payable (15,665) (70,687)
NET CASH PROVIDED BY FINANCING ACTIVITIES 644,787 429,313
NET DECREASE IN CASH (1,435,912) (1,674,739)
CASH AT BEGINNING OF PERIOD 4,119,058 2,763,596
CASH AT END OF PERIOD 2,683,146 1,088,857
CASH PAID FOR INTEREST AND TAXES:    
Cash paid for income taxes
Cash paid for interest $ 549,704 $ 325,000

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