XML 16 R6.htm IDEA: XBRL DOCUMENT v3.19.1
Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss $ (18,749,163) $ (7,640,806)
Loss from discontinued operations and disposal (3,854,599) 0
Loss from continuing operations (14,894,564) (7,640,806)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 359,654 218,660
Bad debt provision 0 42,057
Amortization of debt discount 176,000 1,190,633
Stock based compensation 3,793,555 709,000
Non-cash interest expense 696,013 0
Changes in operating assets and liabilities:    
Accounts receivable (107,967) (168,006)
Prepaid expenses and other current assets (208,349) (32,915)
Accounts payable and accrued expenses 460,829 1,172,306
Accrued interest 0 135,715
Deferred income 16,767 155,157
NET CASH USED IN OPERATING ACTIVITIES - CONTINUING OPERATIONS (9,708,097) (4,218,199)
NET CASH USED IN OPERATING ACTIVITIES - DISCONTINUED OPERATIONS (858,821) 0
NET CASH USED IN OPERATING ACTIVITIES (10,566,918) (4,218,199)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of property and equipment (43,109) (6,600)
Capitalization of software costs (419,892) (251,324)
Cash received upon acquisition 4,947,023 0
Proceeds from sale of component, net of cash relinquished 1,995,634 0
Increase in other assets (525) 0
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES - CONTINUING OPERATIONS 6,479,131 (257,924)
NET CASH USED IN INVESTING ACTIVITIES - DISCONTINUED OPERATIONS (33,576) 0
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 6,445,555 (257,924)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from the sale of common stock 300,000 0
Proceeds from the sale of Series H-4 preferred stock and warrants 6,000,000 0
Financing costs from the sale of Series H-4 preferred stock and warrants (101,661) 0
Proceeds from issuance of common stock in connection with exercise of H-4 warrants 936,423 0
Proceeds from the sale of Series K Warrants 983,333 0
Financing costs from the sale of Series K warrants (15,000) 0
Proceeds from issuance of Series A Preferred Stock and subscription receivable 0 219,968
Proceeds from issuance of convertible notes and warrants 0 4,840,000
Offering costs - Convertible Notes 0 (263,200)
NET CASH PROVIDED BY FINANCING ACTIVITIES - CONTINUING OPERATIONS 8,103,095 4,796,768
NET CASH USED IN FINANCING ACTIVITIES - DISCONTINUED OPERATIONS (50,263) 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 8,052,832 4,796,768
Net increase in cash 3,931,469 320,645
Cash, beginning of period 372,011 51,366
Cash, end of period 4,303,480 372,011
NON-CASH FINANCING ACTIVITIES:    
Fair value of stock warrants issued with convertible notes 0 2,138,931
Fair value of common stock sold to founders 0 684,000
Accrued offering costs 0 122,000
Accrued capitalized software costs 0 108,979
Stock issued to WPCS Shareholder in the merger net of cash received of $4,947,023 4,845,200 0
Liabilities assumed in connection with the sale of component 568,468 0
Series H-4 offering cost paid in H-4 shares and warrants 3,682,502 0
Stock issued for convertible note payable 159,584 0
Stock issued for accrued interest on convertible note payable 1,399,656 0
Deemed dividends on warrant issuances and modification $ 1,399,632 $ 0