Cash Flow

v3.19.1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Cash flows from operating activities:    
Net loss $ (4,844,021) $ (4,512,680)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation expense 6,764 2,955
Amortization of intangible assets 589,619 587,823
Amortization of discount on convertible debentures 330,388
Bad debt expense 810,580
Interest income on short-term investment (4) (15)
Change in fair value of financial instruments (96,327)
Loss on conversion of convertible instruments 1,018,475
Non-cash consultant fee 254,500
Stock-based compensation 396,214 701,402
Loss on equity affiliates 3,626
Changes in operating assets and liabilities:    
Accounts receivable 448,969 (2,771,357)
Cost and estimated earnings in excess of billings on uncompleted contracts (199,150) (27,826)
Inventory 9,445
Prepaid expenses and other current assets (802,797) (59,170)
Intangible asset (28,820)
Accounts payable and accrued expenses 476,127 1,797,318
Billings in excess of costs and estimated earnings on uncompleted contracts (338,161) 1,624,570
Deferred revenue (72,788)
Net cash used in operating activities (3,452,234) (1,242,107)
Cash flows provided by investing activities:    
Proceeds from short-term investment 30,037
Purchase of property, plant and equipment (71,306) (4,192)
Purchase of intangible asset (5,300)
Investment in and advances to equity affiliates (3,626)
Net cash used in investing activities (50,195) (4,192)
Cash flows from financing activities:    
Proceeds from exercise of stock options 8,409
Proceeds from public stock offering, net of issuance costs 7,059,614
Payments on convertible debentures (1,500,000)
Net cash provided by financing activities 5,568,023
Net increase (decrease) in cash and cash equivalents (3,502,429) 4,321,724
Cash and cash equivalents - beginning of period 4,870,824 549,100
Cash and cash equivalents - end of period 1,368,395 4,870,824
Supplemental disclosure of non-cash investing and financing activities:    
Conversion of convertible debentures to common stock 2,583,334
Conversion of preferred stock to common stock $ 1,801,670

Source