v3.10.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net loss $ (64,617,550) $ (9,480,927)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 29,518 50,486
Stock-based compensation 2,728,551 0
Noncash interest expense 1,590,406 0
Amortization of intangible asset 24,999 0
Amortization of debt discounts 25,593,467 5,976,125
Change in fair value of warrant liability 8,127,196 (3,203,468)
Change in fair value of derivative liability 14,293,963 0
Compensation expense for issuance of consultant warrants 176,000 0
Changes in operating assets and liabilities:    
Accounts receivable 3,320 (46,095)
Inventories (478,150) (157,101)
Prepaid expenses and other assets (359,008) (75,068)
Accounts payable (348,318) (196,321)
Accrued liabilities (166,789) (1,131,034)
Accrued interest 6,316,331 1,652,419
Net cash used in operating activities (7,086,064) (6,610,984)
Cash flows from investing activities:    
Purchases of property and equipment (69,719) (2,095)
Net cash used in investing activities (69,719) (2,095)
Cash flows from financing activities:    
Proceeds from issuance of common stock 10,272,679 0
Proceeds from issuance of promissory notes, net of issuance costs 2,002,000 0
Proceeds from issuance of convertible notes payable, net of issuance costs 1,434,698 7,018,478
Repayment of convertible notes payable (200,000) (57,903)
Taxes paid related to net share settlements of equity awards (498,901) 0
Net cash provided by financing activities 13,010,476 6,960,575
Effect of exchange rate changes on cash and cash equivalents (2,275) (3,354)
Net increase in cash and cash equivalents 5,852,418 344,142
Cash and cash equivalents as of beginning of year 249,143 [1] 92,262
Cash and cash equivalents as of end of year 6,101,561 436,404
Supplemental disclosure of cash flow information:    
Cash paid for income taxes 8,150 2,950
Noncash Investing and Financing Activities:    
Issuance of warrants in connection with convertible notes payable 3,301,250 3,332,897
Issuance of warrant in connection with settlement agreement with Series E holders 1,590,406 0
Issuance of warrants in connection in initial public offering 169,000 0
Beneficial conversion feature of convertible notes payable 665,000 3,151,665
Reclassification of warrant from liability to equity 192,000 0
Issuance of convertible notes payable upon amendment of promissory notes 0 150,000
Issuance of convertible notes in lieu of employee expense payments 50,000 0
Reduction of convertible notes payable by shipment of inventories 0 277,725
Conversion of accrued interest to accounts payable 1,957 0
Conversion of interest to convertible notes payable as principal 10,182 9,234
Reclassification of promissory notes to convertible notes payable 2,250,000 0
Fair value of derivative liability in connection with issuance of notes payable 7,886,125 0
Conversion of preferred units to common stock upon initial public offering 64,734,841 0
Conversion of convertible notes and accrued interest to common stock upon initial public offering 30,450,139 0
Reclassification of derivative liability to equity upon initial public offering 43,012,088 0
Reclassification of warrant liability to equity upon initial public offering $ 9,118,073 $ 0
[1] The condensed consolidated balance sheet as of December 31, 2017 was derived from the audited consolidated balance sheet as of that date.

Source