Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.19.3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Schedule of inventory

Inventory consists of the following:

 

    September 30,
2019
    December 31,
2018
 
Raw Material   $ 376,417     $ 307,947  
Finished Goods     46,792       39,998  
TOTAL INVENTORY   $ 423,209     $ 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 the nine months ended September 30, 2019 and for the year ended December 31, 2018:

 

    Fair Value Measurements Using Significant Unobservable Inputs
(Level 3)
 
   

Nine Months Ended
September 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
September 30,
    Nine Months Ended
September 30,
 
    2019     2018     2019     2018  
Type of Revenue                        
     Product revenue   $ 61,182     $ 23,323     $ 212,905     $ 29,913  
     Service revenue     26,950       11,853       100,459       46,699  
     Other revenue     -       -       219       6,568  
            Total revenue   $ 88,132     $ 35,176     $ 313,583     $ 83,180  

 

   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
    2019     2018     2019     2018  
Timing of Revenue                        
Revenue recognized point in time   $ 79,166     $ 28,310     $ 281,333     $ 44,356  
Revenue recognized over time     8,966       6,866       32,250       38,824  
            Total revenue   $ 88,132     $ 35,176     $ 313,583     $ 83,180  
Schedule of deferred warranty activity

The table below details the activity in our contract liabilities during the nine months ended September 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.

 

   

Nine Months Ended

September 30,
2019

    Year Ended December 31,
2018
 
Balance at beginning of period   $ 20,631     $ 30,690  
     Additions     20,826       32,106  
     Transfer to revenue     (32,250 )     (42,166 )
Balance at end of period   $ 9,207     $ 20,631  
Schedule of lease costs

We used the incremental borrowing rate on December 31, 2018 for all leases that commenced prior to that date.

 

Lease Costs

 

    Three Months Ended
September 30,
2019
    Nine Months Ended
September 30,
2019
 
Components of total lease costs:            
Operating lease expense   $ 148,922     $ 445,148  
Short-term lease costs (1)     11,122       38,626  
Total lease costs   $ 160,044     $ 483,774  

 

(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 unaudited condensed consolidated balance sheet as follows:

 

   

As of
September 30,

2019

 
Assets:      
Operating lease assets, current   $ 337,000  
Operating lease assets, net of current     369,275  
Total lease assets   $ 706,275  
         
Liabilities:        
Operating lease liabilities, current   $ 589,158  
Operating lease liabilities, net of current     432,860  
Total lease liabilities   $ 1,022,018  
Schedule of lease terms and discount rate

Lease Terms and Discount Rate

 

Weighted average remaining lease term (in years) – operating lease     2.3  
Weighted average discount rate – operating lease     14 %
Schedule of cash paid for amounts included in the measurement of lease liabilities

   

Nine Months Ended
September 30,

2019

 
Cash paid for amounts included in the measurement of lease liabilities:      
Operating cash flows for operating leases   $ 340,044  
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 September 30, 2019, for the following five years and thereafter are as follows:

 

Years ending December 31,      
2019 (3 months)   $ 155,075  
2020     645,248  
2021     173,545  
2022     116,392  
2023     67,895  
Total future minimum lease payments     1,158,155  
Lease imputed interest     (136,137 )
Total   $ 1,022,018  
Schedule of net loss per share

The following potentially dilutive securities for the nine months ended September 30, 2019 and 2018 have been excluded from the computation of diluted net loss per share because the effect of their inclusion would have been anti-dilutive.

 

    Nine months ended  
   

September 30,

2019

   

September 30,

2018 

 
Warrants     5,466,057       -  
Convertible debt     -       140,678  
TOTAL     5,466,057       140,678  
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 nine-month periods ended September 30, 2019 and 2018, respectively:

 

    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
Customer   2019     2018     2019     2018  
A     -       16 %     44 %     48 %
B     -       55 %     18 %     33 %
C     85 %     -       36 %     -  
D     -       27 %     -       12 %