Financials

v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 10,000 $ 208,000
Accounts receivable 9,000 14,000
Inventory 3,047,000 3,028,000
Prepaid expenses and other current assets 365,000 333,000
Total current assets 3,431,000 3,583,000
Property and equipment, net 2,420,000 2,660,000
Intangibles, net 8,000 13,000
Deposits and other long term assets 32,000
Total assets 5,859,000 6,288,000
Current liabilities:    
Accounts payable 2,080,000 1,749,000
Accrued expenses 1,964,000 1,380,000
Deferred revenues and customer advances 4,573,000 5,270,000
Accrued contract loss 391,000 617,000
Convertible unsecured notes payable, net of discounts 1,051,000 1,250,000
Convertible senior secured notes payable, net of discounts 8,698,000 5,994,000
Capital leases payable-short term 10,000 13,000
Total current liabilities 18,767,000 16,273,000
Long term liabilities:    
Capital lease payable 6,000 12,000
Total liabilities 18,773,000 16,285,000
Commitments and contingencies (Note 15)
Stockholders' deficit:    
Preferred stock, $0.0001 par value. Authorized 50,000,000 shares; no shares issued and outstanding at September 30, 2018 and December 31, 2017
Common stock, $0.0001 par value. Authorized 200,000,000 shares; 4,206,393 and 4,081,393 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively
Additional paid-in capital 47,831,000 42,342,000
Accumulated deficit (60,745,000) (52,339,000)
Total stockholders' deficit (12,914,000) (9,997,000)
Total liabilities and stockholders' deficit $ 5,859,000 $ 6,288,000

Source

v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Income Statement [Abstract]        
Revenues $ 1,100,000
Cost of goods sold
Gross profit 1,100,000
Operating expenses:        
Selling, general, and administrative 397,000 650,000 1,539,000 2,686,000
Research and development 429,000 452,000 1,280,000 1,634,000
Total operating expenses 826,000 1,102,000 2,819,000 4,320,000
Operating loss (826,000) (1,102,000) (1,719,000) (4,320,000)
Other income expenses:        
Interest expense (38,000) (77,000) (174,000) (417,000)
Amortization of debt discount (3,493,000) (1,256,000) (6,503,000) (3,969,000)
Loss on disposition of assets (137,000)
Loss on debt extinguishment (10,000)
Loss on modification of convertible debt (43,000)
Loss on conversion of convertible debt (11,000) (11,000)
Total other expenses (3,542,000) (1,333,000) (6,688,000) (4,576,000)
Loss before provision for income taxes (4,368,000) (2,435,000) (8,407,000) (8,896,000)
Provision for income taxes
Net loss $ (4,368,000) $ (2,435,000) $ (8,407,000) $ (8,896,000)
Loss per share-basic and diluted $ (1.05) $ (0.60) $ (2.04) $ (2.21)
Weighted average common shares-basic and diluted 4,167,806 4,063,660 4,121,045 4,026,726

Source

v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (8,407,000) $ (8,896,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 245,000 340,000
Stock-based compensation 334,000 788,000
Amortization of debt discount and deferred financing fees 6,509,000 4,050,000
Loss on debt conversions 11,000 53,000
Loss on asset disposal 151,000
Changes in assets and liabilities:    
Restricted cash 50,000
Accounts and other receivables (99,000)
Prepaid expenses and other current assets 46,000 56,000
Inventory (245,000) (271,000)
Deferred revenues, net (697,000) 1,551,000
Deposits 5,000
Accounts payable and other current liabilities 955,000 548,000
Cash used in operating activities (1,249,000) (1,674,000)
Cash flows from investing activities:    
Proceeds from sale of assets 67,000
Net cash provided by investing activities 67,000
Cash flows from financing activities:    
Proceeds from issuance of Senior Notes 1,060,000 500,000
Repayment of capital leases payable (9,000) (9,000)
Cash provided by financing activities 1,051,000 491,000
Net decrease in cash and cash equivalents (198,000) (1,116,000)
Cash and cash equivalents at beginning of period 208,000 1,310,000
Cash and cash equivalents at end of period 10,000 194,000
Cash paid during the period for:    
Income taxes
Interest 75,000
Supplemental disclosure of non-cash activities:    
Capital lease for purchase of equipment 25,000
Debt discount recorded upon issuance of warrants and beneficial conversion features 5,110,000 176,000
Conversion of convertible senior secured notes into shares of common stock 25,000 60,000
Accrued expenses exchanged for convertible senior secured notes 135,000
Shares of common stock issued for prepaid retainer $ 20,000

Source