SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)
|
3 Months Ended |
Mar. 31, 2019 |
|---|
| Accounting Policies [Abstract] |
|
| Schedule of Inventory |
Inventory consist of the
following:
| |
|
March 31,
2019
|
|
|
December 31,
2018
|
|
| Raw Material |
|
$ |
321,598 |
|
|
$ |
307,947 |
|
| Finished Goods |
|
|
33,830 |
|
|
|
39,998 |
|
| TOTAL INVENTORY |
|
$ |
355,428 |
|
|
$ |
347,945 |
|
|
| 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 three months ended March 31, 2019 and for the year
ended December 31, 2018:
| |
|
Fair Value Measurements Using
Significant Unobservable Inputs
(Level 3)
|
|
| |
|
Three Months
Ended
March 31, 2019
|
|
|
Year ended
December 31,
2018
|
|
| |
|
|
|
|
|
|
| Balance, beginning of period |
|
$ |
- |
|
|
$ |
(166,093 |
) |
| Issuances of derivative liability |
|
|
- |
|
|
|
- |
|
| Reclassification to additional paid in capital |
|
|
- |
|
|
|
1,141,995 |
|
| Change in fair value of derivative liability |
|
|
- |
|
|
|
(975,902 |
) |
| Balance, end of period |
|
$ |
- |
|
|
$ |
- |
|
|
| Disaggregation of Revenue |
The following tables present our disaggregated
revenues by Type of Revenue and Timing of Revenue:
| |
|
Three Months Ended
March 31,
|
|
| |
|
2019 |
|
|
2018 |
|
| Type of Revenue |
|
|
|
|
|
|
|
|
| Product revenue |
|
$ |
12,963 |
|
|
$ |
- |
|
| Service revenue |
|
|
19,331 |
|
|
|
29,382 |
|
| Total revenue |
|
$ |
32,294 |
|
|
$ |
29,382 |
|
| |
|
Three Months Ended
March 31,
|
|
| |
|
2019 |
|
|
2018 |
|
| Timing of Revenue |
|
|
|
|
|
|
|
|
| Revenue recognized point in time |
|
$ |
18,307 |
|
|
$ |
4,967 |
|
| Revenue recognized over time |
|
|
13,987 |
|
|
|
24,415 |
|
| Total |
|
$ |
32,294 |
|
|
$ |
29,382 |
|
|
| Deferred warranty activity |
The table below details
the activity in our contract liabilities during the three months ended March 31, 2019, and the balance at March 31, 2019 and is
included in other current liabilities the Company’s condensed consolidated balance sheet.
| |
|
Three Months
Ended
March 31, 2019
|
|
| Balance at beginning of period |
|
$ |
20,631 |
|
| Additions |
|
|
20,826 |
|
| Transfer to revenue |
|
|
(13,987 |
) |
| Balance at end of period |
|
$ |
27,470 |
|
|
| Schedule of Lease Costs |
Lease Costs
| |
|
Three Months
Ended
March 31, 2019
|
|
| Components of total lease costs: |
|
|
|
|
| Operating lease expense |
|
$ |
148,085 |
|
| Short-term lease costs(1) |
|
|
12,717 |
|
| Total lease costs |
|
$ |
160,802 |
|
(1) Represents short-term
leases which are immaterial.
|
| Schedule of ROU lease assets and lease liabilities |
ROU lease assets and lease
liabilities for our operating leases were recorded in the condensed consolidated balance sheet as follows:
| |
|
March 31, 2019 |
|
| Assets |
|
|
|
|
| Other assets |
|
$ |
875,873 |
|
| Total assets |
|
$ |
875,873 |
|
| |
|
|
|
|
| Liabilities |
|
|
|
|
| Operating lease liabilities |
|
$ |
550,467 |
|
| Operating lease liabilities, net of current |
|
|
705,859 |
|
| Total lease liability |
|
$ |
1,256,326 |
|
|
| Schedule of Lease Terms and Discount Rate |
Lease Terms and Discount Rate
| Weighted average remaining lease term (in years) – operating lease |
|
|
2.77 |
|
| Weighted average discount rate – operating lease |
|
|
14 |
% |
|
| Cash paid for amounts included in the measurement of lease liabilities |
Cash Flows
| |
|
Three Months
Ended
March 31,
2019
|
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
| Operating cash flows for operating leases |
|
$ |
77,164 |
|
| Supplemental non-cash amounts of lease liabilities arising from obtaining |
|
|
|
|
| ROU assets |
|
$ |
1,315,161 |
|
|
| Future minimum lease payments |
Future lease payments included
in the measurement of lease liabilities on the condensed consolidated balance sheet as of March 31, 2019, for the following five
years and thereafter are as follows:
| Years ending December 31, |
|
|
|
| 2019 (9 months) |
|
$ |
492,937 |
|
| 2020 |
|
|
645,248 |
|
| 2021 |
|
|
173,545 |
|
| 2022 |
|
|
116,392 |
|
| 2023 |
|
|
67,895 |
|
| Total future minimum lease payments |
|
|
1,496,017 |
|
| Lease imputed interest |
|
|
239,691 |
|
| Total |
|
$ |
1,256,326 |
|
|