SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Accounting Policies [Abstract] |
|
| Schedule of Assumptions Used |
The assumptions used in
computing the fair value as of September 30, 2018 and December 31, 2017 are as follows:
| |
|
September 30,
2018
|
|
|
December 31,
2017
|
|
| Stock price |
|
$ |
0.2281 |
|
|
$ |
0.0027 |
|
| Conversion price |
|
$ |
8.1500 |
|
|
$ |
8.1500 |
|
| Expected volatility |
|
|
63.0 |
% |
|
|
60.0 |
% |
| Term (years) |
|
|
9.5 |
|
|
|
8.5 |
|
| Risk-free interest |
|
|
2.36 |
% |
|
|
3.03 |
% |
| Expected dividend yield |
|
|
0 |
% |
|
|
0 |
% |
|
| Fair Value Measurements, Recurring and Nonrecurring |
The following table provides
the financial assets and liabilities reported at fair value and measured on a recurring basis at September 30, 2018 and December
31, 2017:
| Description |
|
|
Assets/
(Liabilities)
Measured at Fair Value
|
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
|
Significant Other Observable Inputs
(Level 2)
|
|
|
Significant Other Unobservable Inputs
(Level 3)
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value of warrant liability as of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| September 30, 2018 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2017 |
|
|
$ |
(166,093 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(166,093 |
) |
|
| Changes in fair value associated with Level 3 liabilities |
The following table provides
a summary of changes in fair value associated with the Level 3 liabilities for the nine months ended September 30, 2018 and the
year ended December 31, 2017:
| |
|
|
Fair Value Measurements Using Significant Unobservable
Inputs
(Level 3)
|
|
| |
|
|
September 30,
2018
|
|
|
|
December 31,
2017
|
|
| |
|
|
|
|
|
|
|
|
| Balance, beginning of period |
|
$ |
(166,093 |
) |
|
$ |
— |
|
| Issuances of derivative liability |
|
|
(623,875 |
) |
|
|
(171,118 |
) |
| Reclassification to additional paid in capital |
|
|
1,742,939 |
|
|
|
— |
|
| Change in fair value of derivative liability |
|
|
(952,971 |
) |
|
|
5,025 |
|
| Balance, end of period |
|
$ |
— |
|
|
$ |
(166,093 |
) |
|
| Deferred warranty activity |
The table below details
the activity in these deferred warranty and maintenance programs during the nine months ended September 30, 2018 and the year ended
December 31, 2017, and the balance at the end of each period is included as deferred revenue in the table in NOTE 6 below.
| |
|
Nine Months Ended
September 30,
2018
|
|
|
Year
Ended December 31, 2017
|
|
| Balance, beginning of period |
|
$ |
30,690 |
|
|
$ |
36,299 |
|
| Additions |
|
|
20,106 |
|
|
|
39,895 |
|
| Transfer to revenue |
|
|
(38,824 |
) |
|
|
(45,504 |
) |
| Balance, end of period |
|
$ |
11,972 |
|
|
$ |
30,690 |
|
|
| Disaggregation of Revenue |
The following table summarizes
revenue by revenue source for the three and nine-month periods ended September 30, 2018:
| |
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
| |
|
September 30, 2018 |
|
| Major Products/Services |
|
|
|
|
|
|
|
|
| Product revenue |
|
$ |
23,323 |
|
|
$ |
33,901 |
|
| Service revenue |
|
|
11,853 |
|
|
|
49,279 |
|
| Total |
|
$ |
35,176 |
|
|
$ |
83,180 |
|
| |
|
|
|
|
|
|
| Timing of Revenue Recognition |
|
|
|
|
|
|
| Products transferred at a point in time |
|
$ |
28,310 |
|
|
$ |
44,356 |
|
| Services transferred over time |
|
|
6,866 |
|
|
|
38,824 |
|
| Total |
|
$ |
35,176 |
|
|
$ |
83,180 |
|
|
| Potentially dilutive securities |
Potentially dilutive securities
outlined in the table below have been excluded from the computation of diluted net loss per share because the effect of their inclusion
would have been anti-dilutive.
| |
|
For the Nine Months
Ended September 30,
|
|
| |
|
2018 |
|
|
2017 |
|
| Warrants to purchase common stock |
|
|
— |
|
|
|
2,630,606 |
|
| Options to purchase common stock |
|
|
— |
|
|
|
3,606,052 |
|
| Convertible debt |
|
|
140,678 |
|
|
|
1,093,153 |
|
| Total potentially dilutive securities |
|
|
140,678 |
|
|
|
7,329,811 |
|
|