General form of registration statement for all companies including face-amount certificate companies

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)

v3.19.1
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)
 3 Months Ended 12 Months Ended
Mar. 31, 2019
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 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   $ -     $ -  

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:

 

    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  

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 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  

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  
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  
 
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