2019 Q2 Form 10-Q Financial Statement

#000154908419000004 Filed on May 01, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2019 Q1 2018 Q1
Revenue $3.262M $3.616M $2.518M
YoY Change 9.94% 43.61% 75.35%
Cost Of Revenue $1.702M $2.017M $1.751M
YoY Change -14.9% 15.19% 62.58%
Gross Profit $1.560M $1.599M $767.0K
YoY Change 61.32% 108.47% 117.9%
Gross Profit Margin 47.82% 44.22% 30.46%
Selling, General & Admin $5.159M $5.127M $7.591M
YoY Change -23.68% -32.46% 35.07%
% of Gross Profit 330.71% 320.64% 989.7%
Research & Development $1.499M $1.384M $1.808M
YoY Change 7.92% -23.45% -37.0%
% of Gross Profit 96.09% 86.55% 235.72%
Depreciation & Amortization $240.0K $247.0K $428.0K
YoY Change -47.83% -42.29% -9.89%
% of Gross Profit 15.38% 15.45% 55.8%
Operating Expenses $6.658M $6.511M $9.380M
YoY Change -18.33% -30.59% 10.35%
Operating Profit -$5.098M -$4.912M -$8.613M
YoY Change -29.05% -42.97% 5.71%
Interest Expense $107.0K $121.0K $163.0K
YoY Change -33.13% -25.77% 36.97%
% of Operating Profit
Other Income/Expense, Net $2.032M -$1.639M $712.0K
YoY Change -356.24% -330.2% -1117.14%
Pretax Income -$3.070M -$6.550M -$7.900M
YoY Change -61.53% -17.09% -4.82%
Income Tax
% Of Pretax Income
Net Earnings -$3.066M -$6.551M -$7.899M
YoY Change -61.57% -17.07% -4.85%
Net Earnings / Revenue -93.99% -181.17% -313.7%
Basic Earnings Per Share -$0.13
Diluted Earnings Per Share -$651.8K -$1.509M -$0.13
COMMON SHARES
Basic Shares Outstanding 67.67M shares 64.26M shares 60.15M shares
Diluted Shares Outstanding 60.15M shares

Balance Sheet

Concept 2019 Q2 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $13.26M $9.240M $20.57M
YoY Change -4.54% -55.08% 118.13%
Cash & Equivalents $13.26M $9.236M $20.57M
Short-Term Investments
Other Short-Term Assets $610.0K $510.0K $960.0K
YoY Change 5.17% -46.88% 29.73%
Inventory $3.724M $3.300M $2.830M
Prepaid Expenses
Receivables $4.541M $3.793M $3.570M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $22.13M $16.84M $27.94M
YoY Change 8.48% -39.75% 110.68%
LONG-TERM ASSETS
Property, Plant & Equipment $1.816M $2.331M $2.350M
YoY Change -20.04% -0.81% -4.47%
Goodwill $189.0K $189.0K
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $168.0K $140.0K $120.0K
YoY Change 40.0% 16.67% 30.43%
Total Long-Term Assets $3.450M $4.025M $3.020M
YoY Change 22.99% 33.28% -16.87%
TOTAL ASSETS
Total Short-Term Assets $22.13M $16.84M $27.94M
Total Long-Term Assets $3.450M $4.025M $3.020M
Total Assets $25.58M $20.86M $30.96M
YoY Change 10.23% -32.62% 83.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.480M $2.474M $3.390M
YoY Change -4.25% -27.02% 18.24%
Accrued Expenses $2.768M $3.286M $2.760M
YoY Change -12.46% 19.06% 0.47%
Deferred Revenue $1.369M $1.211M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $2.333M $2.333M $2.333M
YoY Change 0.0% 0.0% 499.74%
Total Short-Term Liabilities $9.343M $9.710M $10.03M
YoY Change -0.55% -3.19% 42.86%
LONG-TERM LIABILITIES
Long-Term Debt $1.535M $2.093M $4.290M
YoY Change -59.02% -51.21% -35.34%
Other Long-Term Liabilities $45.00K $54.00K $1.800M
YoY Change 25.0% -97.0% 1968.97%
Total Long-Term Liabilities $1.580M $2.147M $4.290M
YoY Change -58.22% -49.95% -36.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.343M $9.710M $10.03M
Total Long-Term Liabilities $1.580M $2.147M $4.290M
Total Liabilities $20.18M $16.33M $16.12M
YoY Change 29.5% 1.28% -11.81%
SHAREHOLDERS EQUITY
Retained Earnings -$180.8M -$177.7M
YoY Change 12.95%
Common Stock $75.00K $68.00K
YoY Change 22.95%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.404M $4.534M $14.84M
YoY Change
Total Liabilities & Shareholders Equity $25.58M $20.86M $30.96M
YoY Change 10.23% -32.62% 83.25%

Cashflow Statement

Concept 2019 Q2 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income -$3.066M -$6.551M -$7.899M
YoY Change -61.57% -17.07% -4.85%
Depreciation, Depletion And Amortization $240.0K $247.0K $428.0K
YoY Change -47.83% -42.29% -9.89%
Cash From Operating Activities -$4.530M -$5.177M -$6.745M
YoY Change -25.12% -23.25% -7.02%
INVESTING ACTIVITIES
Capital Expenditures -$50.00K $7.000K $31.00K
YoY Change -77.42% -77.54%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$50.00K -$7.000K -$31.00K
YoY Change -77.42% -77.54%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $7.305M $0.00
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 8.600M $6.769M -$399.0K
YoY Change -1557.63% -1796.49% -20050.0%
NET CHANGE
Cash From Operating Activities -4.530M -$5.177M -$6.745M
Cash From Investing Activities -50.00K -$7.000K -$31.00K
Cash From Financing Activities 8.600M $6.769M -$399.0K
Net Change In Cash 4.020M $1.581M -$7.175M
YoY Change -160.54% -122.03% -2.91%
FREE CASH FLOW
Cash From Operating Activities -$4.530M -$5.177M -$6.745M
Capital Expenditures -$50.00K $7.000K $31.00K
Free Cash Flow -$4.480M -$5.184M -$6.776M
YoY Change -25.95% -23.49% -8.33%

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P5Y
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CY2019Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
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CY2019Q1 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
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1750000 USD
CY2019Q1 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
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CY2018Q4 us-gaap Long Term Notes Payable
LongTermNotesPayable
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CY2019Q1 us-gaap Net Cash Provided By Used In Financing Activities
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CY2019Q1 us-gaap Net Cash Provided By Used In Investing Activities
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CY2018Q1 us-gaap Net Cash Provided By Used In Operating Activities
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CY2019Q1 us-gaap Net Cash Provided By Used In Operating Activities
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CY2019Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019Q1 us-gaap Number Of Reportable Segments
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CY2019Q1 us-gaap Operating Expenses
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CY2019Q1 us-gaap Operating Lease Lease Income
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CY2019Q1 us-gaap Operating Lease Liability
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CY2019Q1 us-gaap Operating Lease Liability Current
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406000 USD
CY2018Q4 us-gaap Operating Lease Liability Noncurrent
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CY2019Q1 us-gaap Operating Lease Liability Noncurrent
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CY2019Q1 us-gaap Operating Lease Right Of Use Asset
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0.105
CY2019Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P3Y2M
CY2018Q1 us-gaap Operating Leases Rent Expense Net
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143000 USD
CY2019Q1 us-gaap Operating Leases Rent Expense Net
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140000 USD
CY2018Q4 us-gaap Other Accrued Liabilities Current
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256000 USD
CY2019Q1 us-gaap Other Accrued Liabilities Current
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114000 USD
CY2018Q4 us-gaap Other Assets Noncurrent
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134000 USD
CY2019Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
140000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-207000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
148000 USD
CY2018Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-207000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
148000 USD
CY2018Q4 us-gaap Other Employee Related Liabilities Current
OtherEmployeeRelatedLiabilitiesCurrent
270000 USD
CY2019Q1 us-gaap Other Employee Related Liabilities Current
OtherEmployeeRelatedLiabilitiesCurrent
116000 USD
CY2018Q4 us-gaap Other Liabilities Noncurrent
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67000 USD
CY2019Q1 us-gaap Other Liabilities Noncurrent
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54000 USD
CY2018Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
712000 USD
CY2018Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
31000 USD
CY2019Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
7000 USD
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2019Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2018Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2019Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2019Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2018Q4 us-gaap Preferred Stock Shares Issued
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0 shares
CY2019Q1 us-gaap Preferred Stock Shares Issued
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0 shares
CY2018Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2019Q1 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2018Q4 us-gaap Preferred Stock Value
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0 USD
CY2019Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q4 us-gaap Prepaid Expense And Other Assets Current
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281000 USD
CY2019Q1 us-gaap Prepaid Expense And Other Assets Current
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506000 USD
CY2018Q1 us-gaap Proceeds From Issuance Of Common Stock
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0 USD
CY2019Q1 us-gaap Proceeds From Issuance Of Common Stock
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CY2018Q1 us-gaap Proceeds From Stock Options Exercised
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0 USD
CY2019Q1 us-gaap Proceeds From Stock Options Exercised
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55000 USD
CY2018Q4 us-gaap Product Warranty Accrual Classified Current
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307000 USD
CY2019Q1 us-gaap Product Warranty Accrual Classified Current
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CY2018Q4 us-gaap Property Plant And Equipment Net
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CY2019Q1 us-gaap Property Plant And Equipment Net
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CY2018Q1 us-gaap Provision For Doubtful Accounts
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CY2019Q1 us-gaap Provision For Doubtful Accounts
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55000 USD
CY2018Q1 us-gaap Repayments Of Notes Payable
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399000 USD
CY2019Q1 us-gaap Repayments Of Notes Payable
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591000 USD
CY2018Q1 us-gaap Research And Development Expense
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1808000 USD
CY2019Q1 us-gaap Research And Development Expense
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1384000 USD
CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2019Q1 us-gaap Retained Earnings Accumulated Deficit
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CY2018Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2019Q1 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2019Q1 us-gaap Revenue Remaining Performance Obligation
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CY2019Q1 us-gaap Revenue Remaining Performance Obligation
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CY2019Q1 us-gaap Revenue Remaining Performance Obligation
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CY2019Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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P9M
CY2019Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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CY2019Q1 us-gaap Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Period1
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CY2018Q1 us-gaap Selling And Marketing Expense
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CY2019Q1 us-gaap Selling And Marketing Expense
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CY2018Q1 us-gaap Share Based Compensation
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CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
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CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
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CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
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CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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CY2019Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
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P10Y
CY2019Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P6Y
CY2018Q1 us-gaap Stock Granted During Period Value Sharebased Compensation
StockGrantedDuringPeriodValueSharebasedCompensation
190000 USD
CY2018Q1 us-gaap Stock Issued1
StockIssued1
190000 USD
CY2019Q1 us-gaap Stock Issued1
StockIssued1
0 USD
CY2018Q1 us-gaap Stock Issued During Period Value Employee Benefit Plan
StockIssuedDuringPeriodValueEmployeeBenefitPlan
508000 USD
CY2019Q1 us-gaap Stock Issued During Period Value Employee Benefit Plan
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191000 USD
CY2019Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
7305000 USD
CY2019Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
55000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
21391000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
14839000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
2728000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
4534000 USD
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
60146000 shares
CY2019Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
65067000 shares
CY2019Q1 us-gaap Concentration Risk Credit Risk
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentration of Credit Risk and Other Risks and Uncertainties</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company maintains its cash accounts in excess of federally insured limits. However, the Company believes it is not exposed to significant credit risk due to the financial position of the depository institutions in which these deposits are held. The Company extends credit to customers in the normal course of business and performs ongoing credit evaluations of its customers. Concentrations of credit risk with respect to accounts receivable exist to the full extent of amounts presented in the condensed consolidated financial statements. The Company does not require collateral from its customers to secure accounts receivable.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Accounts receivable are derived from the sale of products shipped to and services performed for customers. Invoices are aged based on contractual terms with the customer. The Company reviews accounts receivable for collectability and records an allowance for credit losses, as needed. The Company has not experienced any material losses related to accounts receivable as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Many of the sales contracts with customers outside of the U.S. are settled in a foreign currency. The Company does not enter into any foreign currency hedging agreements and is susceptible to gains and losses from foreign currency fluctuations. To date, the Company has not experienced significant gains or losses upon settling foreign currency denominated accounts receivable.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2019</font><font style="font-family:inherit;font-size:10pt;">, the Company had no customers with an accounts receivable balance totaling </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> or more of the Company&#8217;s total accounts receivable compared with one customer as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> (</font><font style="font-family:inherit;font-size:10pt;">19%</font><font style="font-family:inherit;font-size:10pt;">).</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In the </font><font style="font-family:inherit;font-size:10pt;">three months ended March 31, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2018</font><font style="font-family:inherit;font-size:10pt;">, the Company had one customer with sales of </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> or more of the Company&#8217;s total revenue (</font><font style="font-family:inherit;font-size:10pt;">11%</font><font style="font-family:inherit;font-size:10pt;">).</font></div></div>
CY2019Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet, and the reported amounts of revenues and expenses during the reporting period. For the Company, these estimates include, but are not limited to: revenue recognition, deferred revenue and the deferral of the associated costs, future warranty costs, accounting for leases, useful lives assigned to long-lived assets, valuation of inventory, realizability of deferred tax assets, the valuation of employee stock options and warrants, and contingencies. Actual results could differ from those estimates.</font></div></div>

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