Financials

v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
Sep. 30, 2020
Dec. 31, 2019
Current assets    
Cash $ 318,931 $ 1,499,287
Accounts receivable 1,474,952 1,222,874
Inventory 473,560 513,498
Prepaid expenses and other assets 185,248 316,199
Total current assets 2,452,691 3,551,858
Property and equipment, net 1,918,226 2,082,343
Right of use asset 894,203 1,106,575
Intellectual property 2,369,946 2,532,462
Total assets 7,635,066 9,273,238
Current liabilities    
Accounts payable and accrued expenses (related party of $131,250 and $43,750) 1,617,465 1,676,757
Current portion of equipment notes payable 30,233 53,304
Current portion of operating lease liability 402,918 383,307
Note payable 85,585 0
Current portion of convertible notes payable 0 990,000
Accrued interest 140,346 226,065
Customer credits 167,000 167,000
Accrued salaries 706,989 357,095
Total current liabilities 3,150,536 3,853,528
Equipment notes payable, less current portion 8,293 22,386
Operating lease liability 498,535 807,409
Note payable 299,300 0
Convertible notes payable, net of discount and issuance costs 4,026,378 2,951,137
Profit share liability - related party 2,187,891 2,328,845
Secured note payable - related party 271,686 271,686
Unsecured note payable, net of discount and issuance costs - related party 9,395,979 7,911,898
Total liabilities 19,838,598 18,146,889
COMMITMENTS AND CONTINGENCIES (Note 11) 0 0
Stockholders' deficit    
Preferred stock, $0.001 par value: 2,000,000 shares authorized 0 0
Common stock; $0.001 par value; 150,000,000 shares authorized; 77,747,750 and 76,747,750 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively 77,748 76,748
Additional paid-in capital 49,179,979 48,708,085
Accumulated deficit (61,461,259) (57,658,484)
Total stockholders' deficit (12,203,532) (8,873,651)
Total liabilities and stockholders' deficit $ 7,635,066 $ 9,273,238

Source

v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)        
Revenues $ 2,812,197 $ 3,596,107 $ 5,812,375 $ 8,893,177
Costs and expenses:        
Cost of sales 1,881,742 2,477,673 4,198,125 6,438,998
Selling, general and administrative expenses (related party of $75,000, $76,991, $200,000 and $227,530) 1,271,351 1,186,280 3,576,796 5,116,487
Interest expense & letter of credit fees (related party of $509,300, $508,886, $1,514,735 and $1,450,215) 672,355 623,237 1,987,102 1,690,855
(Gain) loss on change in fair value of profit share 111,436 112,575 (140,954) 255,847
Gain on sale of equipment 0 0 (5,919) 0
Total costs and expenses 3,936,884 4,399,765 9,615,150 13,502,187
Loss before provision for income taxes (1,124,687) (803,658) (3,802,775) (4,609,010)
Provision for income taxes 0 0 0 0
Net loss $ (1,124,687) $ (803,658) $ (3,802,775) $ (4,609,010)
Net loss per common share-basic and diluted: $ (0.01) $ (0.01) $ (0.05) $ (0.06)
Weighted average common shares outstanding - basic and diluted 77,747,750 76,730,400 77,744,087 76,463,246

Source

v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities    
Net loss $ (3,802,775) $ (4,609,010)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation - amortization of prepaid services 619,176 1,762,736
Amortization of discount of notes payable 1,477,771 1,200,780
Amortization of debt issuance costs 91,551 99,515
Amortization of right to use assets 212,372 283,551
Amortization of customer acquisition costs 0 34,467
Amortization of patent rights 162,516 150,900
Depreciation expense 160,537 247,954
Gain on sale of equipment (5,919) 0
(Gain) Loss on change in fair value of profit share (140,954) 255,847
Changes in operating assets and liabilities    
(Increase) Decrease in accounts receivable (252,078) 211,060
(Increase) Decrease in inventory 39,938 (120,011)
Increase in prepaid expenses and other assets (15,331) (119,785)
Increase (Decrease) in accounts payable and accrued liabilities 204,882 (424,686)
Decrease in operating lease liability (289,263) (277,944)
Net cash used in operating activities (1,537,577) (1,304,626)
Cash flows provided by investing activities    
Cash received from sale of equipment 9,500 0
Net cash provided by investing activities 9,500 0
Cash flows from financing activities    
Payment of debt issuance costs 0 (46,683)
Payments of notes payable (114,415) (59,672)
Payments of equipment notes payable (37,164) 0
Proceeds from the issuance of convertible promissory notes and related warrants 0 1,825,000
Proceeds from the issuance of notes payable 499,300 0
Net cash provided by financing activities 347,721 1,718,645
Net increase (decrease) in cash and cash equivalents (1,180,356) 414,019
Cash and cash equivalents - beginning of period 1,499,287 584,877
Cash and cash equivalents - end of period 318,931 998,896
SUPPLEMENTAL CASH FLOW INFORMATION:    
Interest 488,265 237,575
Taxes 0 0
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS    
Cumulative effect on accumulated deficit of lease accounting change 0 77,866
Stock issued for prepaid services 20,000 0
Discount on convertible promissory notes payable 0 333,984
Net adjustment for extension of lease 0 145,267
Capital contribution related to debt restructuring $ 0 $ 3,412,204

Source