Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)

v3.19.2
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)
6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Schedule of inventory

Inventory consists of the following:

 

    June 30,
2019
    December 31,
2018
 
Raw Material   $ 376,724     $ 307,947  
Finished Goods     30,445       39,998  
TOTAL INVENTORY   $ 407,169     $ 347,945  
Schedule of 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 six months ended June 30, 2019 and for the year ended December 31, 2018:

 

    Fair Value Measurements Using Significant Unobservable Inputs
(Level 3)
 
   

Six Months Ended
June 30,

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   $ -     $ -  
Schedule of disaggregation of revenue

The following tables present our disaggregated revenues by Type of Revenue and Timing of Revenue:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2019     2018     2019     2018  
Type of Revenue                        
Product revenue   $ 138,760     $ 4,000     $ 151,723     $ 8,000  
Service revenue     54,178       12,044       73,509       36,458  
Other revenue     219       400       219       1,368  
Total revenue   $ 193,157     $ 16,444     $ 225,451     $ 45,826  

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2019     2018     2019     2018  
Timing of Revenue                        
Revenue recognized point in time   $ 183,860     $ 4,401     $ 202,167     $ 9,368  
Revenue recognized over time     9,297       12,043       23,284       36,458  
Total revenue   $ 193,157     $ 16,444     $ 225,451     $ 45,826  
Schedule of deferred warranty activity

The table below details the activity in our contract liabilities during the six months ended June 30, 2019, and the year ended December 31,2018, and is included in other current liabilities in the Company’s unaudited condensed consolidated balance sheet.

 

    Six Months
Ended
June 30,
2019
    Year
Ended
December 31,
2018
 
Balance at beginning of period   $ 20,631     $ 30,690  
Additions     28,326       32,106  
Transfer to revenue     (30,784 )     (42,166 )
Balance at end of period   $ 18,173     $ 20,631  
Schedule of lease costs

Lease Costs

 

    Three Months Ended
June 30,
2019
    Six Months Ended
June 30,
2019
 
Components of total lease costs:                
Operating lease expense   $ 148,141     $ 296,226  
Short-term lease costs (1)     14,963       27,680  
Total lease costs   $ 163,104     $ 323,906  

  

  (1) Represents short-term leases which are immaterial.
Schedule of ROU lease assets and lease liabilities

Lease Positions as of June 30, 2019

  

ROU lease assets and lease liabilities for our operating leases were recorded in the unaudited condensed consolidated balance sheet as follows:

  

    As of  
    June 30,  
    2019  
Assets:        
Operating lease assets, current   $ 323,751  
Operating lease assets, net of current     471,832  
Total lease assets   $ 795,583  
         
Liabilities:        
Operating lease liabilities, current   $ 567,063  
Operating lease liabilities, net of current     595,448  
Total lease liabilities   $ 1,162,511
Schedule of lease terms and discount rate

Lease Terms and Discount Rate

 

Weighted average remaining lease term (in years) – operating lease     2.5  
Weighted average discount rate – operating lease     14 %
Schedule of cash paid for amounts included in the measurement of lease liabilities

Cash Flows

 

    Six Months Ended
June 30,
2019
 
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows for operating leases   $ 240,417  
Schedule of future minimum lease payments

Future lease payments included in the measurement of lease liabilities on the unaudited condensed consolidated balance sheet as of June 30, 2019, for the following five years and thereafter are as follows:

 

Years ending December 31,      
2019 (6 months)   $ 310,150  
2020     645,248  
2021     173,545  
2022     116,392  
2023     67,895  
Total future minimum lease payments     1,313,230  
Lease imputed interest     (150,719 )
Total   $ 1,162,511  
Schedule of concentration of customers

The table below sets forth the Company’s customers that accounted for greater than 10% of its revenues for the three- and six-month periods ended June 30, 2019 and 2018, respectively:

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
Customer   2019     2018     2019     2018  
A     31 %     -       27 %     -  
B     31 %     -       27 %     -  
C     13 %     -       22 %     16 %
D     20 %     -       18 %     -  
E     -       87 %     -       80 %

 

Customers D accounted for 100% of the Company’s accounts receivable balance at June 30, 2019.