Financials

v3.8.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Dec. 31, 2017
Dec. 31, 2016
Current assets    
Cash and cash equivalents $ 2,418,427  
Accounts receivable 2,931,353  
Inventory 659,579  
Prepaid expenses and other assets 210,535  
Total current assets 6,219,894  
Property and equipment, net 2,728,993 $ 2,569,354
Deferred tax asset 500,000
Intellectual property, net 2,934,862  
Customer acquisition costs, net 172,333 642,203
Total assets 12,056,082  
Current liabilities    
Accounts payable and accrued expenses 1,795,703  
Current portion of notes payable 2,500,000  
Current portion of convertible notes payable, net 1,461,417  
Current portion of equipment notes payable 61,177 39,499
Customer credits 167,000  
Accrued interest 77,500  
Deferred revenue 517,060  
Total current liabilities 6,579,857  
Notes payable, net of discount and issuance costs 9,733,361  
Convertible notes payable, net of discount and issuance costs  
Equipment notes payable 167,649 143,135
Total liabilities 16,480,868  
Stockholders' deficit    
Preferred stock, $.001 par value: 2,000,000 shares authorized  
Common stock; $.001 par value; 150,000,000 shares authorized; 76,246,113 shares issued and outstanding as of December 31, 2017 73,509,663 shares issued and outstanding as of December 31, 2016 76,246  
Additional paid-in capital 42,165,620  
Accumulated deficit (46,666,652)  
Total stockholders' deficit (4,424,786) (3,658,244)
Total liabilities and stockholders' deficit $ 12,056,082  
(Restated) [Member]    
Current assets    
Cash and cash equivalents   7,751,557
Accounts receivable   3,553,096
Inventory   609,072
Prepaid expenses and other assets   199,495
Total current assets   12,113,220
Property and equipment, net   2,569,354
Deferred tax asset   500,000
Intellectual property, net   52,945
Customer acquisition costs, net   642,203
Total assets   15,877,722
Current liabilities    
Accounts payable and accrued expenses   4,363,553
Current portion of notes payable   1,500,000
Current portion of convertible notes payable, net  
Current portion of equipment notes payable   39,499
Customer credits   590,206
Accrued interest   78,750
Deferred revenue  
Total current liabilities   6,572,008
Notes payable, net of discount and issuance costs   11,678,669
Convertible notes payable, net of discount and issuance costs   1,142,154
Equipment notes payable   143,135
Total liabilities   19,535,966
Stockholders' deficit    
Preferred stock, $.001 par value: 2,000,000 shares authorized  
Common stock; $.001 par value; 150,000,000 shares authorized; 76,246,113 shares issued and outstanding as of December 31, 2017 73,509,663 shares issued and outstanding as of December 31, 2016   73,510
Additional paid-in capital   40,031,625
Accumulated deficit   (43,763,379)
Total stockholders' deficit   (3,658,244)
Total liabilities and stockholders' deficit   $ 15,877,722

Source

v3.8.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Revenues    
Product sales $ 26,050,032  
Equipment sales 794,206  
Demonstrations and consulting services 654,842  
Total revenues 27,499,080 $ 32,345,540
Costs and expenses:    
Cost of sales 19,016,932  
Selling, general and administrative expenses 8,471,096  
Total costs and expenses 27,488,028  
Operating profit 11,052  
Other income (expense)    
Interest expense (2,154,570)  
Letter of credit fees (219,333) (226,000)
Loss on debt restructuring (14,105,076)
Total other expense (2,373,903)  
Net loss before taxes (2,362,851)  
Income tax (expense) benefit (540,422) 472,669
Net loss $ (2,903,273) (15,617,571)
Continuing operations $ (0.03)  
Net loss per common share - basic and diluted: $ (0.03)  
Weighted average common shares outstanding 75,061,800  
(Restated) [Member]    
Revenues    
Product sales   28,920,051
Equipment sales   2,699,051
Demonstrations and consulting services   726,438
Total revenues   32,345,540
Costs and expenses:    
Cost of sales   23,030,404
Selling, general and administrative expenses   7,257,445
Total costs and expenses   30,287,849
Operating profit   2,057,691
Other income (expense)    
Interest expense   (3,816,855)
Letter of credit fees   (226,000)
Loss on debt restructuring   (14,105,076)
Total other expense   (18,147,931)
Net loss before taxes   (16,090,240)
Income tax (expense) benefit   472,669
Net loss   $ (15,617,571)
Continuing operations   $ (0.32)
Net loss per common share - basic and diluted:   $ (0.32)
Weighted average common shares outstanding   50,646,328

Source

v3.8.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Cash flows from operating activities    
Net loss $ (2,903,273) $ (15,617,571)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Stock based compensation 1,532,013  
Amortization of license fees 1,950  
Amortization of patent rights 134,133  
Amortization of discount of notes payable 745,652  
Amortization of debt issuance costs 153,303  
Amortization of customer acquisition costs 469,870 443,450
Depreciation expense 748,020  
Deferred tax benefit 500,000  
Noncash financing expenses  
Loss on debt restructuring 14,105,076
Noncash settlement charge expenses 61,100  
PIK interest  
Change in assets and liabilities    
Decrease in accounts receivable 621,743  
(Increase) decrease in inventory (50,507)  
(Increase) in prepaid expenses and other assets (11,040)  
Increase (decrease) in accounts payable and accrued liabilities (2,568,482)  
Increase in Deferred Revenue 517,060  
(Decrease) in customer credits (423,206)  
Net cash (used in) provided by operating activities (471,664)  
Cash flows used in investing activities    
Purchase of property and equipment (806,460)  
Purchase of intellectual property (2,500,000)  
Net cash (used in) investing activities (3,306,460)  
Cash flows from financing activities    
Payment of debt issuance costs  
Payment of equity issuance costs  
Payment of equipment notes payable (55,006)  
Payments on convertible promissory note  
Payments on secured promissory note (1,500,000)  
Proceeds from the issuance of common stock  
Proceeds from the issuance of common stock upon warrant exercise  
Net cash (used in) provided by financing activities (1,555,006)  
Net (decrease) increase cash and cash equivalents (5,333,130)  
Cash and cash equivalents - beginning of year 7,751,557  
Cash and cash equivalents - end of year 2,418,427 7,751,557
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid during the year for: Interest 1,254,997  
Cash paid during the year for: Taxes 40,422  
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Equipment purchases included in note payable 101,199  
Stock issued for interest on notes payable  
Conversion of accounts receivable to customer acquisition costs  
Conversion of debt and accrued interest to equity 25,618  
Conversion of accrued interest to debt  
(Restated) [Member]    
Cash flows from operating activities    
Net loss   (15,617,571)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:    
Stock based compensation   1,158,617
Amortization of license fees   5,880
Amortization of patent rights  
Amortization of discount of notes payable   1,625,808
Amortization of debt issuance costs   619,524
Amortization of customer acquisition costs   443,450
Depreciation expense   463,868
Deferred tax benefit   (500,000)
Noncash financing expenses   29,000
Loss on debt restructuring   14,105,076
Noncash settlement charge expenses  
PIK interest   584,667
Change in assets and liabilities    
Decrease in accounts receivable   (2,590,719)
(Increase) decrease in inventory   2,106,841
(Increase) in prepaid expenses and other assets   (33,624)
Increase (decrease) in accounts payable and accrued liabilities   3,106,992
Increase in Deferred Revenue  
(Decrease) in customer credits   (2,281,760)
Net cash (used in) provided by operating activities   3,226,049
Cash flows used in investing activities    
Purchase of property and equipment   (1,686,344)
Purchase of intellectual property  
Net cash (used in) investing activities   (1,686,344)
Cash flows from financing activities    
Payment of debt issuance costs   (98,671)
Payment of equity issuance costs   (1,264,009)
Payment of equipment notes payable   (31,938)
Payments on convertible promissory note   (5,000,000)
Payments on secured promissory note   (2,000,000)
Proceeds from the issuance of common stock   13,457,962
Proceeds from the issuance of common stock upon warrant exercise   65,228
Net cash (used in) provided by financing activities   5,128,572
Net (decrease) increase cash and cash equivalents   6,668,277
Cash and cash equivalents - beginning of year $ 7,751,557 1,083,280
Cash and cash equivalents - end of year   7,751,557
SUPPLEMENTAL CASH FLOW INFORMATION:    
Cash paid during the year for: Interest   578,934
Cash paid during the year for: Taxes   27,331
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Equipment purchases included in note payable   103,428
Stock issued for interest on notes payable   263,200
Conversion of accounts receivable to customer acquisition costs   188,225
Conversion of debt and accrued interest to equity   1,368,927
Conversion of accrued interest to debt   $ 696,999

Source

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