Cash Flow

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended 9 Months Ended
Jun. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:      
Net loss   $ (3,439,303) $ (543,206)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation expense   2,083 674
Amortization of debt issuance costs  
Amortization of discount on convertible debentures   330,388 145,875
Amortization of intangible assets   440,507 111,808
Interest income on short-term investment   (12) (3)
Loss on conversion of convertible debentures   1,018,475  
Change in fair value of financial instruments   (96,327) (18,345)
Interest expense on debtor in possession financing  
Gain on reorganization  
Stock-based compensation   649,204
Changes in operating assets and liabilities:      
Accounts receivable   (122,679) (88,874)
Costs and estimated earnings in excess of billings on uncompleted contracts   (25,875) (25,753)
Prepaid expenses and other current assets   (4,453) (5,000)
Inventory   9,445 (98,257)
Intangible asset   (28,820)
Accounts payable and accrued expenses   576,952 (76,403)
Accrued interest, related party   (26,500)
Accounts payable and accrued expenses - subject to compromise   (21,197)
Related party accounts payable and accrued expenses   45,818
Related party accounts payable and accrued expenses - subject to compromise   (113,789)
Billings in excess of costs and estimated earnings on uncompleted contracts   754,437 68,679
Deferred revenue   (72,788) 83,587
Net cash used in operating activities   (8,766) (560,886)
Cash flows provided by investing activities:      
Purchase of equipment   (4,192)
Security deposit refund  
Net cash provided by (used in) investing activities   (4,192)
Cash flows from financing activities:      
Principal payments on related party notes payable   (48,500)
Proceeds from issuance of convertible debentures  
Proceeds from public stock offering, net of issuance costs   7,062,194
Payments on convertible debentures   (1,500,000)
Net cash provided by (used in) financing activities   5,562,194 (48,500)
Net increase (decrease) in cash and cash equivalents   5,549,236 (609,386)
Cash and cash equivalents - beginning of period $ 955,803 549,100 955,803
Cash and cash equivalents - end of period   6,098,336 346,417
Cash paid during the period for:      
Interest  
Supplemental disclosure of non-cash financing activities:      
Conversion of debtor in possession financing to convertible debentures  
Conversion of convertible debentures to common stock   2,583,334
Conversion of preferred stock to common stock   1,801,670
Issuance of common stock for prepaid services   $ 214,000
Predecessor      
Cash flows from operating activities:      
Net loss (664,737)    
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation expense 1,629    
Amortization of debt issuance costs 5,204    
Amortization of discount on convertible debentures    
Amortization of intangible assets 387,965    
Interest income on short-term investment (8)    
Loss on conversion of convertible debentures    
Change in fair value of financial instruments    
Interest expense on debtor in possession financing 35,848    
Gain on reorganization (713,379)    
Stock-based compensation 119,146    
Changes in operating assets and liabilities:      
Accounts receivable (104,858)    
Costs and estimated earnings in excess of billings on uncompleted contracts    
Prepaid expenses and other current assets (28,589)    
Inventory 118,011    
Intangible asset    
Accounts payable and accrued expenses 269,317    
Accrued interest, related party    
Accounts payable and accrued expenses - subject to compromise (22,457)    
Related party accounts payable and accrued expenses    
Related party accounts payable and accrued expenses - subject to compromise (163,522)    
Billings in excess of costs and estimated earnings on uncompleted contracts 14,650    
Deferred revenue (87,115)    
Net cash used in operating activities (832,895)    
Cash flows provided by investing activities:      
Purchase of equipment    
Security deposit refund 2,700    
Net cash provided by (used in) investing activities 2,700    
Cash flows from financing activities:      
Principal payments on related party notes payable    
Proceeds from issuance of convertible debentures 1,319,001    
Proceeds from public stock offering, net of issuance costs    
Payments on convertible debentures    
Net cash provided by (used in) financing activities 1,319,001    
Net increase (decrease) in cash and cash equivalents 488,806    
Cash and cash equivalents - beginning of period 466,997   $ 466,997
Cash and cash equivalents - end of period 955,803    
Cash paid during the period for:      
Interest    
Supplemental disclosure of non-cash financing activities:      
Conversion of debtor in possession financing to convertible debentures 600,000    
Conversion of convertible debentures to common stock    
Conversion of preferred stock to common stock    

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