SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| Accounting Policies [Abstract] |
|
| Schedule of Assumptions Used |
The assumptions used in
computing the fair value as of December 31, 2017 are as follows:
| Stock price |
|
$ |
0.0027 |
|
| Conversion price |
|
$ |
8.1500 |
|
| Expected volatility |
|
|
63 |
% |
| Term (years) |
|
|
9.5 |
|
| Risk-free interest |
|
|
2.36 |
% |
| Expected dividend yield |
|
|
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 December 31, 2018 and 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 derivative liability as of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 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 years ended December 31, 2018 and 2017:
| |
|
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
|
|
| |
|
December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| |
|
|
|
|
|
|
| Balance, beginning of period |
|
$ |
(166,093 |
) |
|
$ |
— |
|
| Issuances of derivative liability |
|
|
— |
|
|
|
(171,118 |
) |
| Reclassification to additional paid in capital |
|
|
1,141,995 |
|
|
|
— |
|
| Change in fair value of derivative liability |
|
|
(975,902 |
) |
|
|
5,025 |
|
| Balance, end of period |
|
$ |
— |
|
|
$ |
(166,093 |
) |
|
| Disaggregation of Revenue |
The following tables present our disaggregated revenues by Type
of Revenue and Timing of Revenue.
| |
|
Years Ended December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| Type of Revenue |
|
|
|
|
|
|
| Product revenue |
|
$ |
125,664 |
|
|
$ |
185,261 |
|
| Service revenue |
|
|
64,365 |
|
|
|
89,142 |
|
| Total revenue |
|
$ |
190,029 |
|
|
$ |
274,403 |
|
| |
|
Years Ended December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| Timing of Revenue |
|
|
|
|
|
|
| Revenue recognized point in time |
|
$ |
147,863 |
|
|
$ |
235,636 |
|
| Revenue recognized over time |
|
|
42,166 |
|
|
|
38,767 |
|
| Total revenue |
|
$ |
190,029 |
|
|
$ |
274,403 |
|
|
| Deferred warranty activity |
The table below details
the activity in our contract liabilities during the years ended December 31, 2018 and 2017, and the balance at the end of each
year is reported as deferred revenue in the Company’s consolidated balance sheet.
| |
|
Years Ended December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| Balance, beginning of year |
|
$ |
30,690 |
|
|
$ |
36,299 |
|
| Additions |
|
|
32,106 |
|
|
|
39,895 |
|
| Transfer to revenue |
|
|
(42,166 |
) |
|
|
(45,504 |
) |
| Balance, end of year |
|
$ |
20,631 |
|
|
$ |
30,690 |
|
|
| 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.
| |
|
Years Ended December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| Warrants to purchase common stock |
|
|
— |
|
|
|
1,953,722 |
|
| Options to purchase common stock |
|
|
— |
|
|
|
3,606,052 |
|
| Convertible debt |
|
|
140,678 |
|
|
|
1,490,704 |
|
| Total potentially dilutive securities |
|
|
140,678 |
|
|
|
7,050,478 |
|
|