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.
|