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Restatement Of Condensed Consolidated Financial Statements (Tables)

6 Months Ended

Jun. 30, 2020

Accounting Changes and Error Corrections [Abstract]

Schedule of Restatement of Unaudited Consolidated Financial Statements

Condensed Consolidated Balance Sheet

		June 30, 2020
		As Previously Reported				Adjustments				As Restated
Assets
Current assets
Cash and cash equivalents		$	18,550,437			$	-			$	18,550,437
Accounts receivable, net			5,349,876				-				5,349,876
Inventory			10,110,786				-				10,110,786
Prepaid expenses			521,180				2,369,369				2,890,549
Total current assets			34,532,279				2,369,369				36,901,648
Property and equipment, net			473,376				-				473,376
Investment in joint venture			1,416,480				-				1,416,480
Total assets		$	36,422,135			$	2,369,369			$	38,791,504
Liabilities and stockholders’ equity
Current liabilities
Accounts payable		$	1,127,709			$	-			$	1,127,709
Accrued expenses			691,385				-				691,385
Accrued expenses (related party)			120,000				-				120,000
Deferred revenue			1,045,548				-				1,045,548
Total current liabilities			2,984,642				-				2,984,642
Accrued expenses-long-term (related party)			80,000				-				80,000
Total liabilities			3,064,642				-				3,064,642
Commitments and contingencies (Note 1)
Stockholders’ equity
Convertible preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 and 25,600 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively			-				-				-
Common Stock, $0.001 par value; 100,000,000 shares authorized; 27,991,042 and 17,342,922 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively			27,991				-				27,991
Additional paid-in capital			46,726,869				-				46,726,869
Accumulated deficit			(13,397,367	)			2,369,369				(11,027,998	)
Total stockholders’ equity			33,357,493				2,369,369				35,726,862
Total liabilities and stockholders’ equity		$	36,422,135			$	2,369,369			$	38,791,504

Condensed Consolidated Statement of Operations

		Three Months Ended June 30, 2020
		As Previously Reported				Adjustments				As Restated
Net revenue		$	24,040,274			$	-			$	24,040,274
Cost of revenue			8,344,674				(2,369,369	)			5,975,305
Gross profit			15,695,600				2,369,369				18,064,969
Operating expenses
Sales and marketing			390,191				-				390,191
Administrative and general			2,191,034				-				2,191,034
Research and development			750,249				-				750,249
Depreciation and amortization			25,218				-				25,218
Total operating expenses			3,356,692				-				3,356,692
Income from operations			12,338,908				2,369,369				14,708,277
Other income
Interest income			38,173				-				38,173
Interest expense			-				-				-
Gain on disposition of assets			-				-				-
Gain (loss) on equity method investment in joint venture			258,559				-				258,559
Total other income			296,732				-				296,732
Income before income taxes			12,635,640				2,369,369				15,005,009
Provision for income taxes			-				-				-
Net income		$	12,635,640			$	2,369,369			$	15,005,009
Net income per common share:
Basic		$	0.46			$	0.08			$	0.54
Diluted		$	0.43			$	0.08			$	0.51
Weighted average shares outstanding:
Basic			27,582,229				27,582,229				27,582,229
Diluted			29,152,222				29,152,222				29,152,222

Condensed Consolidated Statement of Operations

		Six Months Ended June 30, 2020
		As Previously Reported				Adjustments				As Restated
Net revenue		$	25,588,802			$	-			$	25,588,802
Cost of revenue			8,826,414				(2,369,369	)			6,457,045
Gross profit			16,762,388				2,369,369				19,131,757
Operating expenses
Sales and marketing			658,674				-				658,674
Administrative and general			3,650,518				-				3,650,518
Research and development			1,150,271				-				1,150,271
Depreciation and amortization			45,966				-				45,966
Total operating expenses			5,505,429				-				5,505,429
Income (loss) from operations			11,256,959				2,369,369				13,626,328
Other income
Interest income			45,748				-				45,748
Interest expense			-				-				-
Gain on disposition of assets			-				-				-
Gain (loss) on equity method investment in joint venture			267,740				-				267,740
Total other income			313,488				-				313,488
Income before income taxes			11,570,447				2,369,369				13,939,816
Provision for income taxes			-				-				-
Net income		$	11,570,447			$	2,369,369			$	13,939,816
Net income per common share:
Basic		$	0.42			$	0.08			$	0.50
Diluted		$	0.40			$	0.08			$	0.48
Weighted average shares outstanding:
Basic			27,605,137				27,605,137				27,605,137
Diluted			29,094,475				29,094,475				29,094,475

Condensed Consolidated Statement of Cash Flows

		Six Months Ended June 30, 2020
		As Previously Reported				Adjustments				As Restated
Cash flows from operating activities
Net income		$	11,570,447			$	2,369,369			$	13,939,816
Adjustments to reconcile net income (loss) to cash used in operating activities:
Depreciation and amortization			45,966				-				45,966
Stock-based compensation expense			1,124,242				-				1,124,242
Accretion of notes payable discount			-				-				-
Gain on disposition of assets			-				-				-
Loss (gain) from equity method investment			(267,740	)			-				(267,740	)
Changes in assets and liabilities:
Accounts and other receivable			(5,218,494	)			-				(5,218,494	)
Prepaid and other assets			(158,614	)			(2,369,369	)			(2,527,983	)
Inventory			(10,030,838	)			-				(10,030,838	)
Deffered revenue			1,044,225				-				1,044,225
Accounts payable and accrued expenses			1,542,347				-				1,542,347
Net cash used in operating activities			(348,459	)			-				(348,459	)
Cash flows from investing activities
Purchase of property and equipment			(205,290	)			-				(205,290	)
Investment in joint venture			(714,500	)			-				(714,500	)
Net cash used in investing activities			(919,790	)			-				(919,790	)
Cash flows from financing activities
Proceeds from sale of common stock			19,470,005				-				19,470,005
Proceeds from sale of preferred stock			-				-				-
Proceeds from exercise of options and warrants			913,465				-				913,465
Payment of offering costs			(1,457,922	)			-				(1,457,922	)
Net cash provided by financing activities			18,925,548				-				18,925,548
Net increase in cash and cash equivalents			17,657,299				-				17,657,299
Cash and cash equivalents at beginning of period			893,138				-				893,138
Cash and cash equivalents at end of period		$	18,550,437			$	-			$	18,550,437

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X

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

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