One Stop Systems (OSS) 10-Q 8 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Trading Symbol	OSS
Entity Registrant Name	ONE STOP SYSTEMS INC
Entity Central Index Key	1,394,056
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		12,773,289

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 9,126,847	$ 185,717
Accounts receivable, net	5,213,551	5,192,730
Inventories, net	3,339,761	3,696,330
Prepaid expenses and other current assets	418,969	978,428
Total current assets	18,099,128	10,053,205
Property and equipment, net	1,824,422	1,581,814
Deposits and other	31,215	31,215
Deferred tax assets, net	1,102,465	1,318,447
Goodwill	3,324,128	3,324,128
Intangible assets, net	509,745	608,405
Total Assets	24,891,103	16,917,214
Current liabilities
Accounts payable	1,101,298	3,904,613
Accrued expenses and other liabilities	1,460,160	1,933,977
Borrowings on bank line of credit		3,334,508
Current portion of related-party notes payable, net of debt discount of $0 and $13,905, respectively		136,303
Current portion of note payable, net of debt discount of $0 and $9,932, respectively		640,079
Total current liabilities	2,561,458	9,949,480
Related-party notes payable, net of current portion and debt discount of $0 and $579, respectively		12,696
Note payable, net of current portion and debt discount of $0 and $414, respectively		335,267
Total liabilities	2,561,458	10,297,443
Commitments and contingencies (Note 9)
Stockholders’ equity
Common stock, $0.0001 par value; 50,000,000 shares authorized;12,773,289 and 5,514,917 shares, respectively issued and outstanding, respectively	1,277	551
Additional paid-in capital	22,517,107	3,484,428
Noncontrolling interest	324,257	436,842
Retained (deficit) earnings	(512,996)	281,423
Total stockholders’ equity	22,329,645	6,619,771
Total liabilities and stockholders' equity	$ 24,891,103	16,917,214
Series C Convertible Preferred Stock
Stockholders’ equity
Preferred stock		1,604,101
Series B Convertible Preferred Stock
Stockholders’ equity
Preferred stock		697,996
Series A Convertible Preferred Stock
Stockholders’ equity
Preferred stock		$ 114,430

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Debt discount on related party notes payable, current	$ 0	$ 13,905
Debt discount on note payable, current	0	9,932
Debt discount on related party notes payable, noncurrent	0	579
Debt discount on note payable, noncurrent	$ 0	$ 414
Preferred stock, shares authorized	10,000,000
Preferred stock, shares outstanding	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	12,773,289	5,514,917
Common stock, shares outstanding	12,773,289	5,514,917
Series C Convertible Preferred Stock
Preferred stock, no par value		$ 0
Preferred stock, shares authorized		2,000,000
Preferred stock, shares issued	0	1,087,006
Preferred stock, shares outstanding	0	1,087,006
Preferred stock, liquidation preference per share		$ 1,630,508
Series B Convertible Preferred Stock
Preferred stock, no par value		$ 0
Preferred stock, shares authorized		1,500,000
Preferred stock, shares issued	0	1,450,000
Preferred stock, shares outstanding	0	1,450,000
Preferred stock, liquidation preference per share		$ 725,000
Series A Convertible Preferred Stock
Preferred stock, no par value
Preferred stock, shares authorized		500,000
Preferred stock, shares issued	0	500,000
Preferred stock, shares outstanding	0	500,000
Preferred stock, liquidation preference per share		$ 125,000

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Net revenue	$ 7,119,712	$ 6,336,338
Cost of revenue	4,906,846	4,279,269
Gross margin	2,212,866	2,057,069
Operating expenses:
General and administrative	1,073,048	688,730
Marketing and selling	869,015	607,038
Research and development	972,631	587,454
Total operating expenses	2,914,694	1,883,222
(Loss) income from operations	(701,828)	173,847
Other income (expense):
Interest expense	(55,661)	(50,001)
Other, net	67,609	(67)
Total other income (expense), net	11,948	(50,068)
(Loss) income before provision for income taxes	(689,880)	123,779
Provision for income taxes	217,124	44,632
Net (loss) income	(907,004)	79,147
Net loss attributable to noncontrolling interest	(112,585)	0
Net (loss) income attributable to common stockholders	$ (794,419)	$ 79,147
Net (loss) income per share attributable to common stockholders:
Basic	$ (0.08)	$ 0.01
Diluted	$ (0.08)	$ 0.01
Weighted average common shares outstanding:
Basic	10,140,459	5,379,141
Diluted	10,140,459	9,757,229

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($)	Total	Common Stock	Additional Paid-in Capital	Noncontrolling Interest	Retained (Deficit) Earnings	Series C Preferred Stock	Series B Preferred Stock	Series A Preferred Stock
Balance at Dec. 31, 2017	$ 6,619,771	$ 551	$ 3,484,428	$ 436,842	$ 281,423	$ 1,604,101	$ 697,996	$ 114,430
Balance, Shares at Dec. 31, 2017		5,514,917				1,087,006	1,450,000	500,000
Conversion of preferred stock to common stock upon initial public offering		$ 304	2,416,223			$ (1,604,101)	$ (697,996)	$ (114,430)
Conversion of preferred stock to common stock upon initial public offering, Shares		3,037,006				(1,087,006)	(1,450,000)	(500,000)
Stock-based compensation	35,318		35,318
Exercise of stock options	54,575	$ 32	54,543
Exercise of stock options, Shares		321,366
Taxes paid on net issuance of employee stock options	(274,663)		(274,663)
Relative fair value of warrants issued to Underwriters with IPO	669,408		669,408
Proceeds from issuance of stock, net of issuance costs of $3,367,760	16,132,240	$ 390	16,131,850
Proceed from issuance of stock, net of issuance costs of $1,550,000, Shares		3,900,000
Noncontrolling interest in consolidated subsidiary (Note 1)	(112,585)			(112,585)
Net loss	(794,419)				(794,419)
Balance at Mar. 31, 2018	$ 22,329,645	$ 1,277	$ 22,517,107	$ 324,257	$ (512,996)
Balance, Shares at Mar. 31, 2018		12,773,289

UNAUDITED CONDENSED CONSOLIDAT6

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2018USD ($)
Statement Of Stockholders Equity [Abstract]
Proceed from issuance of stock, issuance costs	$ 3,367,760

UNAUDITED CONDENSED CONSOLIDAT7

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net (loss) income	$ (907,004)	$ 79,147
Net loss attributable to noncontrolling interest	(112,585)	0
Net (loss) income attributable to common stockholders	(794,419)	79,147
Adjustments to reconcile net (loss) income to net cash (used) provided in operating activities:
Net loss attributable to noncontrolling interest	(112,585)	0
Deferred provision for income taxes	215,982
Provision for bad debt	91,127
Warranty reserves	1,326	2,135
Amortization of deferred gain	(28,838)
Depreciation and amortization	253,758	179,044
Inventory reserves	(457,872)	(152,647)
Amortization of debt discount	24,830	5,959
Stock-based compensation expense	35,318	24,626
Changes in operating assets and liabilities:
Accounts receivable	(111,949)	1,337,017
Inventories	430,121	(990,200)
Prepaid expenses and other current assets	(340,579)	(14,623)
Accounts payable	(2,803,316)	550,505
Accrued expenses and other liabilities	(433,714)	178,105
Net cash (used) provided in operating activities	(4,030,810)	1,199,068
Cash flows from investing activities:
Purchases of property and equipment, including capitalization of labor costs for tooling and test equipment	(13,387)	(51,760)
Net cash used in investing activities	(13,387)	(51,760)
Cash flows from financing activities:
Proceeds from stock options exercised	54,575	14,415
Payment of payroll taxes on net issuance of employee stock options	(274,663)
Stock issuance costs	(1,810,902)
Proceeds from issuance of common stock	19,500,000
Net repayments on bank line of credit	(3,334,508)	(982,982)
Payments on related-party notes payable	(163,483)	(32,357)
Payments on notes payable	(985,692)	(151,897)
Net cash provided (used) in financing activities	12,985,327	(1,152,821)
Net change in cash and cash equivalents	8,941,130	(5,513)
Cash and cash equivalents, beginning of period	185,717	14,197
Cash and cash equivalents, end of period	9,126,847	8,684
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	39,351	$ 44,545
Supplemental disclosure of non-cash transactions:
Reclassification of inventory to property and equipment	384,318
Relative fair value of warrants issued in connection with initial public offering	669,408
Reclassification of prepaid IPO expenses to additional paid in capital	$ 887,450

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations One Stop Systems, Inc. (“we,” “our,” “OSS,” or the “Company”) was originally incorporated as a California corporation in 1999 after initially being formed as a California limited liability company in 1998. On December 14, 2017, the Company was reincorporated as a Delaware corporation in connection with its initial public offering. The Company designs, manufactures and markets industrial grade computer systems and components that are based on industry standard computer architectures. The Company markets its products to manufacturers of automated equipment used for telecommunications, industrial and military applications. During the year ended December 31, 2015, the Company formed a new wholly-owned subsidiary in Germany (“OSS GmbH”). During July 2016, the Company acquired Mission Technologies Group, Inc. (“Magma”) and its operations (Note 2). In April 2017, the Company and a related entity formed a joint venture named SkyScale, LLC in the State of California (“SkyScale”). In accordance with the Contribution Agreement, each member contributed $750,000 and received a 50% interest in the joint venture. The purpose of SkyScale, is to engage in the business of providing high performance computing capabilities as cloud services. In May 2017, the Company entered into a Technology and Software License Agreement with Western Digital (“WDT”) for their Ion flash storage software. The agreement provides the Company with the Ion source code and rights to develop and market derivative products. The Company intends to develop and sell Ion flash storage software with its high-density storage arrays, as well as servicing existing WDT software users (Note 2). Also, in July 2017, the Company entered in to a Service Agreement with WDT to service their existing customer base that utilizes Ion flash storage software. The Company also purchased certain equipment from WDT and hired selected employees to assist in the servicing of these existing customers. Management has determined that the activities and assets acquired from WDT comprise a business as defined in ASC 805-10-55-4 through 55. Consideration paid by the Company to WDT pursuant to the arrangements described above was $67,000. In addition, the Company is required to pay prospective royalties to WDT of $2,500 or $5,000 for each sale of the Company’s products that include licensed software. WDT is obligated to pay the Company for services rendered to support existing WDT software users the amount of $1,400,000 in defined declining quarterly amounts over a three year period. Management does not believe this business acquisition meets the significance definition provided in Regulation S-X, Rune 210.1-02(w). Through March 31, 2018, the Company’s primary sources of liquidity came from existing cash; cash generated from operations, a bank revolving line of credit and related party and third party term notes. Borrowings under the debt agreements are collateralized by substantially all of the Company’s assets and the personal guarantee of its CEO. During 2017, the Company experienced growing sales and gross profits, has a strong order backlog, and increased its line of credit facility. On February 1, 2018, the Company completed its initial public offering through the initial sale of 3,800,000 shares of common stock at a price to the public of $5.00 per share (see Note 8). Proceeds from the sale were used to retire outstanding debt obligations and provide the Company with requisite working capital. The combination of the continued revenue growth we have experienced, coupled with an expected improvement in gross margins and cost containment of expenses and funding received from our initial public offering leads management to believe that it is probable that our liquidity will be sufficient to meet our cash requirements for current operations through at least a period of the next twelve months. If necessary, it is probable that external sources of debt and/or equity financing could be obtained based on management’s history of being able to raise capital. As a result of both management’s plans and current favorable business trends, management believes that the Company has sufficient liquidity to satisfy its anticipated cash requirements for at least the next twelve months. However, there can be no assurance that our operations will become profitable or that external sources of financing, including the issuance of debt and/or equity securities, will be available at times and on terms acceptable to us, or at all. The Company’s management prepares budgets and monitors the financial results of the Company as a tool to align liquidity needs to the recurring business requirements. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the Company’s audited December 31, 2017 consolidated financial statements. Basis of Presentation The accompanying financial statements have been prepared on an accrual basis of accounting in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”), as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Certain prior year balances have been reclassified to conform to the current year presentation particularly with the presentation of common stock which is now presented with a par value of $0.0001 per share in accordance with our reincorporation as a Delaware corporation. Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of OSS, which includes the results from the Magma acquisition and Ion business combination since their respective dates of acquisition, its wholly-owned subsidiary, OSS GmbH, and the accounts of the joint venture, SkyScale LLC (collectively referred to as the “Company”). Intercompany balances and transactions have been eliminated in consolidation. On April 6, 2017, the Company and Jacoma Investments, LLC, an entity owned by our board member Jack Harrison, formed a joint venture, SkyScale, LLC (“SkyScale”), to engage in the business of providing high performance computing capabilities as cloud services. In accordance with the terms of the contribution agreement, Jacoma Investments, LLC agreed to contribute $750,000 in capital and the Company agreed to contribute $750,000 in the form of credits to purchase equipment, personnel or support services from the Company. Each party received 50% membership interest in the joint venture. Management determined that SkyScale is a variable interest entity primarily because it is thinly capitalized and may require additional capital to finance its activities. Management also determined that the Company is the primary beneficiary of SkyScale based primarily on the related party nature of SkyScale’s decision-makers and daily business operators. As of March 31, 2018, SkyScale’s significant assets were comprised of cash, cash equivalents and receivables of $170,888 and computer-related equipment and other assets of $759,058, its significant liabilities were comprised of trade accounts payable of $222,395, and its net members’ equity totaled $707,551. For the three month period ended March 31, 2018, SkyScale’s revenues were $120,539, its operating expenses (primarily personnel costs) aggregated $108,849, and its net loss was $135,290. SkyScale did not have any operations in the three month period ended March 31, 2017. The non-controlling interest attributable to SkyScale is shown as a component of equity on the consolidated balance sheets and the share of the profit (loss) attributable to the non-controlling interest is shown as a component of profit (loss) in the consolidated statements of operations. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosures of contingent assets, liabilities, and expenses at the date of the consolidated financial statements during the reporting period. Significant estimates made by management include, among others, the fair value of net assets of Magma acquired in July 2016 and ION in July 2017, the allowance for doubtful accounts, fair value of stock options and warrants, recoverability of inventories and long-lived assets, and realizability of deferred tax assets. Actual results could differ from those estimates. Concentration Risks At times, deposits held with financial institutions may exceed the amount of insurance provided by the Federal Deposit Insurance Corporation (“FDIC”), which provides basic deposit coverage with limits up to $250,000 per owner. As of March 31, 2018, the Company had $8,766,990 in excess of the insurance limits. The Company has not experienced any such losses in these accounts. At March 31, 2018 and December 31, 2017, three customers accounted for 63% and 69% respectively of net trade accounts receivable. For the three month periods ended March 31, 2018 and 2017, three customers accounted for 54% and 46% of net revenue. During the three month periods ended March 31, 2018 and 2017, the Company made purchases from three suppliers which represented approximately 48% and 45% of materials purchased. Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable, accrued expenses and debt instruments. The fair value of the Company’s cash equivalents is determined based on quoted prices in active markets for identical assets or Level 1 inputs. The Company recognizes transfers between Levels 1 through 3 of the fair value hierarchy at the beginning of the reporting period. The fair values of the Company’s variable rate debt instruments approximate its carrying values based upon management’s assessment of the current credit markets. It is not practicable to estimate the fair value of the Company’s fixed rate instruments (including related party notes payable) due to the private nature of those transactions and the lack of an observable market. Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and money market accounts. The Company considers all highly liquid temporary cash investments with an initial maturity of three months or less when acquired to be cash equivalents. Management believes that the carrying amounts of cash equivalents approximate their fair value because of the short maturity period. Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is an estimate to cover the losses resulting from the inability of customers to make payments on their outstanding balances. In estimating the required allowance, management considers the overall quality and aging of the accounts receivable, specific customer circumstances, current economic trends, and historical experience with collections. At March 31, 2018 and December 31, 2017, the allowance for doubtful accounts is $93,228 and $2,101, respectively. Inventories Inventories are valued at the lower of cost or net realizable value determined on a first-in, first-out basis. The Company uses the average cost method for purposes of determining cost, which approximates the first-in, first-out method. The Company establishes reserves on its inventories to write-down the carrying value of its estimated obsolete or excess inventories to estimated net realizable value based upon observations of historical usage and assumptions about future demand and market conditions. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Inventory reserves are considered permanent adjustments to the cost basis of the inventories and are not typically reversed until the specific inventories are sold or otherwise disposed. Property and Equipment Property and equipment, other than leasehold improvements, are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally from three to five years. Leasehold improvements are recorded at cost and are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the related asset. Tooling and test equipment includes capitalized labor costs associated with the development of the related tooling and test equipment. Costs incurred for maintenance and repairs are expensed as incurred, and expenditures for major replacements and improvements are capitalized. Upon retirement or sale, the cost and related accumulated depreciation and amortization of disposed assets are removed from the accounts and any resulting gain or loss is included in other expense, net. Goodwill Goodwill relates to the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is not amortized, but instead the Company assesses possible impairment of goodwill on December 31, of each year and when an event occurs that may trigger such a review. Determining whether a triggering event has occurred involves significant judgment by the Company. Management assesses goodwill for impairment at the reporting unit level, and has determined that the Company only has one reporting unit. In assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of a reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments by management. These judgments include the consideration of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and events which are specific to the Company. Each factor is assessed to determine whether it impacts the impairment test positively or negatively, and the magnitude of any such impact. After the qualitative assessment, the impairment testing is a two-step process. In the first step, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, then goodwill is not impaired and no further testing is required. If the carrying value of the net assets assigned to the reporting unit exceeds its fair value, then the second step is performed in order to determine the implied fair value of the reporting unit’s goodwill and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill. Determining the fair value of a reporting unit and goodwill is judgmental and involves the use of significant estimates and assumptions. Based upon its impairment testing, management determined that no impairment loss has occurred during the three month periods ended March 31, 2018 and 2017. There can be no assurance, however, that market conditions will not change or demand for the Company’s products will continue, which could result in an impairment of goodwill in the future. Impairment of Long-Lived Assets The Company reviews the recoverability of its other long-lived assets, such as property and equipment and definite lived intangible assets, whenever events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. The assessment for possible impairment is based on the Company’s ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, from the related operations. If the aggregate of the net cash flows is less than the carrying value of such assets, an impairment loss is recognized for the difference between estimated fair value and carrying value. The determination and measurement of impairment of long-lived assets requires management to estimate future cash flows and the fair value of long-lived assets. Management determined that there were no impairment charges to be recognized during the three month periods ended March 31, 2018 and 2017. There can be no assurance, however, that market conditions will not change or demand for the Company’s products will continue, which could result in an impairment of long-lived assets in the future. Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605. Accordingly, revenue from the sale of products is recognized when there is evidence of an arrangement, the selling price is fixed or determinable, title and risk of loss has transferred to the customer, any installation or service obligations have been satisfied, and collection is reasonably assured. Net revenue includes deductions for customer discounts and actual and estimated returns. All amounts billed to customers related to shipping and handling are classified as net sales. Customer agreements , ; r ' ; y ' are s is , r ' y ' During the three month periods ended March 31, 2018 and 2017, the Company recorded revenue from product sales that are held in vendor managed inventory under these agreements of $990,401 and $1,898,510, respectively. As of March 31, 2018 and December 31, 2017, $721,335 and $996,588, respectively, of products sold through those dates were held by the Company in the vendor management program. Warranty Reserve The Company offers product warranties that generally extend for one year from the date of sale. Such warranties require the Company to repair or replace defective product returned to the Company during the warranty period at While such costs have historically been within management’s expectations and the provisions established, unexpected changes in failure rates could have a material adverse impact on the Company, requiring additional warranty reserves and could adversely affect the Company’s gross profit and gross margins. Shipping and Handling Costs The Company's shipping and handling costs are included in cost of goods sold for all periods presented. Foreign Currency OSS GmbH operates as an extension of OSS’s domestic operations. The functional currency of OSS GmbH is the Euro. Transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, monetary assets and liabilities are remeasured using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Foreign currency transaction gains and losses are recorded in other income (expense), net in the consolidated statements of operations. Stock-Based Compensation The Company accounts for employee and director share-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – Stock Compensation” All transactions in which goods or services are the consideration received for the issuance of equity instruments to non-employees are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the estimated fair value of the equity instrument issued is the earlier of the date on which the third-party performance is complete or the date on which it is probable that performance will occur. Employee and director stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest during the period. Given that stock-based compensation expense recognized in the accompanying consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company’s estimated average forfeiture rates are based on historical forfeiture experience and estimated future forfeitures. The estimated fair value of common stock option awards is calculated using the Black-Scholes option pricing model. The Black-Scholes model requires subjective assumptions regarding future stock price volatility and expected time to exercise, along with assumptions about the risk-free interest rate and expected dividends, all of which affect the estimated fair values of the Company’s common stock option awards. Given a lack of historical stock option exercises, the expected term of options granted is calculated as the average of the weighted vesting period and the contractual expiration date of the option. This calculation is based on the safe harbor method permitted by the Securities and Exchange Commission in instances where the vesting and exercise terms of options granted meet certain conditions and where limited historical exercise data is available. The expected volatility is based on the historical volatility of the common stock of comparable public companies that operate in similar industries as the Company. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected term of the grant effective as of the date of the grant. The expected dividend assumption is based on the Company’s history and management’s expectation regarding dividend payouts. Compensation expense for common stock option awards with graded vesting schedules is recognized on a straight-line basis over the requisite service period for the last separately vesting portion of the award, provided that the accumulated cost recognized as of any date at least equals the value of the vested portion of the award. If there are any modifications or cancellations of the underlying vested or unvested stock-based awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense, or record additional expense for vested stock-based awards. Future stock-based compensation expense and unearned stock- based compensation may increase to the extent that the Company grants additional common stock options or other stock-based awards. Debt Discounts The debt discounts, which originated from the relative fair value of the warrants issued in connection with note payable and related-party notes payable during 2016 and 2015 (Note 7), are recorded against note payable and related-party notes payable in the accompanying consolidated balance sheets. Advertising Costs Advertising costs are expensed as incurred and included in marketing and selling expense in the accompanying consolidated statements of operations. Advertising costs for the three month periods ended March 31, 2018 and 2017 were $17,626 and $32,088, respectively. Research and Development Expenses Research and development expenditures are expensed in the period incurred. Research and development expenses primarily consist of salaries, benefits and stock-based compensation, as well as consulting expenses and allocated facilities and other overhead costs. Research and development activities include the development of new technologies, features and functionality in support of the Company’s products and customer needs. Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Under ASC Topic 740, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC Topic 740 provides requirements for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company files income tax returns in the U.S. federal jurisdiction, California and overseas in Germany and has open tax statutes for federal taxes for the years ended December 31, 2014 through 2016. For California, the open tax statutes are for years December 31, 2013 through 2016 and for Germany the open years include December 31, 2015 and 2016. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act reduces the corporate tax rate to 21%, effective January 1, 2018. Consequently, the Company has recorded a decrease related to deferred tax assets and deferred tax liabilities as of December 31, 2017. Except for this adjustment, the Company does not foresee material changes to its gross liability of uncertain tax positions within the next twelve months. Interest Expense Interest expense consists primarily of interest associated with the Company’s issued debt including the amortization of debt discounts. The Company recognizes the amortization of debt discounts and the amortization of interest costs using a straight-line method which approximates the effective interest method. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average shares and dilutive potential common shares outstanding during the period. Dilutive potential shares consist of dilutive shares issuable and the exercise or vesting of outstanding stock options and warrants, respectively, computed using the treasury stock method. During a period where a net loss is incurred, dilutive potential shares are excluded from the computation of dilutive net loss per share, as inclusion is anti-dilutive. On February 1, 2018, in connection with the Company’s initial public offering, the Company’s outstanding Series A, Series B, and Series C, Preferred Stock was automatically converted to common stock, par value $0.0001. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business December 31, 2019 In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment December 31, 2021 In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting December 31, 2019 Recently implemented accounting pronouncements In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) ("ASU 2015-11"). The amendments in ASU 2015-11 require that an entity measure inventory within the scope of the standard at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transaction. The amendments in this update more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards. ASU 2015-11 is effective for annual and interim periods beginning on or after December 15, 2017. The Company adopted ASU No. 2015-11 in the first quarter of 2018, without a material impact to its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”), which simplified certain aspects of the accounting for stock-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. ASU 2016-09 will be effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted ASU No. 2016-09 in the first quarter of 2018, with no impact to its consolidated financial statements and disclosures.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2018
Business Combinations [Abstract]
Acquisitions	NOTE 2 – ACQUISITIONS Magma On July 15, 2016, the Company acquired 100% of the outstanding common shares of Mission Technology Group, Inc. (“Magma”) from Magma’s former stockholder (“Magma Stockholder”) pursuant to a Merger Agreement and Plan of Reorganization (the “Merger Agreement”). Magma designs, manufactures, and markets industrial grade computer systems and components and is also located in Southern California. The acquisition is expected to increase the Company’s brand awareness and market share and combines the expertise of OSS in the computer hardware industry with Magma's customer base. The Company issued 1,263,749 shares of the Company’s common stock to the Magma Stockholder for 100% of Magma shares. The fair value assigned to the shares of common stock was $1,756,611. Management estimated the fair value of the consideration issued to the Magma Stockholder and considered factors including recent third-party valuation reports of the Company’s common stock and estimates of discounts for lack of marketability related to the Company’s common stock to the extent not considered in the third-party valuation report. This transaction was accounted for using the acquisition method pursuant to ASC Topic 805, Business Combinations The allocation of the total consideration to the acquired net assets as of the acquisition date for Magma was as follows: Cash $ 68,308 Accounts receivable 356,499 Prepaid expenses 93,800 Inventories 1,208,675 Property and equipment 143,705 Customer lists and relationships 398,717 Drawings and technology 760,207 Trademarks and URL's 25,000 Other intangibles 2,759 Deposits and other 17,202 Accounts payable (842,843 ) Warranty reserve (15,000 ) Deferred tax liability (266,620 ) Accrued expenses (816,249 ) Other accrued liabilities (50,000 ) Line of credit (517,335 ) Notes payable, current portion (157,572 ) Notes payable, long-term (200,000 ) Total fair value excluding goodwill 209,253 Goodwill 1,547,358 Total consideration $ 1,756,611 Fair valuation methods used for the identifiable net assets acquired in the acquisition make use of quoted prices in active markets, discounted cash flows for assessing the value of the customer lists and relationships and the relief from royalty method for determination of drawing and technology values, both using a risk adjusted weighted cost of capital. Management estimates that any residual value from the intangible assets listed above will not be significant. The weighted-average amortization period of each intangible asset identified above is three years. On the acquisition date, goodwill of $1,547,358 and other intangible assets of $1,186,683 were recorded. The business combination is considered a tax-free reorganization under Section 368(a) under the Internal Revenue Code; therefore, acquired goodwill and intangibles of $2,734,041 is not tax-deductible. However, Magma had tax-deductible goodwill of $496,275 (with an original basis of $1,294,624) that will continue to be amortized for tax purposes after the acquisition. In accordance with Topic 350, Intangibles––Goodwill and Other The amount of revenues and net (loss) income of Magma included in the Company’s consolidated statements of operations for the three month period ended March 31, 2017 was $1,564,365 and $11,620, respectively. Subsequent to December 31, 2017, the results of operations for Magma are no longer identified on a standalone basis as Magma has been fully integrated into the consolidated operations of the Company. Definite lived intangible assets as of March 31, 2018: Expected Life Average Remaining Life Gross Intangible Assets Accumulated Amortization Net Intangible Assets Drawings and technology 3 years 1.25 years $ 760,207 $ (432,896 ) $ 327,311 Customer lists and relationships 3 years 1.25 years 398,717 (227,047 ) 171,670 Trademarks, URLs and other 3 years 1.25 years 27,759 (16,995 ) 10,764 $ 1,186,683 $ (676,938 ) $ 509,745 Definite lived intangible assets as of December 31, 2017: Expected Life Average Remaining Life Gross Intangible Assets Accumulated Amortization Net Intangible Assets Drawings and technology 3 years 1.5 years $ 760,207 $ (369,545 ) $ 390,662 Customer lists and relationships 3 years 1.5 years 398,717 (193,821 ) 204,896 Trademarks, URLs and other 3 years 1.5 years 27,759 (14,912 ) 12,847 $ 1,186,683 $ (578,278 ) $ 608,405 Amortization expense recognized during the three month periods ended March 31, 2018 and 2017 was $98,660 and $99,208, respectively. The amortization expense of the definite lived intangible assets for the years remaining is as follows: 2018 2019 Total $ 295,981 $ 213,764 $ 509,745 Ion Software and Services On May 9, 2017, the Company entered into a Technology and Software Source Code License Agreement with Western Digital (WDT) for its Ion flash storage software. The agreement provides the Company with the Ion source code and rights to develop and market derivative products with the intended purpose of developing and selling Ion flash storage software with the Company’s high-density storage arrays. Concurrent with this agreement, the Company purchased certain equipment from Western Digital, has the right to hire selected employees and to forgo certain royalty payments on purchases of solid state drives for a designated customer. The Company took receipt of the licensed software and equipment in July 2017 and made payment in September 2017. As of December 31, 2017, a significant amount of the equipment has not yet been placed in service pending build-out of a facility and evaluation as to what equipment will be retained or sold. Subsequently, on July 1, 2017, the Company entered into a Service Agreement with WDT to service their existing customer base that utilizes Ion flash storage software. The Services Agreement grants the rights and obligations to OSS to provide Ion software level 1-4 support services (as defined in the agreement) to existing WDT software users for a three year period based upon fixed quarterly payments. The “Ion” transaction was accounted for using the acquisition method pursuant to ASC Topic 805, Business Combinations The determination of fair value for the identifiable net assets acquired in the acquisition was determined by management and considered the results of a third-party appraisal of the fair value of equipment purchased. Prior to July 1, 2017, there were no operations or activities associated with this acquisition. The allocation of the total consideration to the acquired net assets as of the acquisition date for Ion is as follows: Equipment at estimated fair value $ 297,700 Amount paid (67,000 ) Gain on acquisition of equipment to be recognized over the three year contract service period $ 230,700

Accounts Receivable

Accounts Receivable	3 Months Ended
	Mar. 31, 2018
Accounts Receivable Net Current [Abstract]
Accounts Receivable	NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable, net consists of the following: March 31, December 31, 2018 2017 Accounts receivable $ 5,306,779 $ 5,194,831 Less: allowance for doubtful accounts (93,228 ) (2,101 ) $ 5,213,551 $ 5,192,730

Inventories

Inventories	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	NOTE 4 – INVENTORIES Inventories, net consist of the following: March 31, December 31, 2018 2017 Raw materials $ 1,790,781 $ 2,079,589 Sub-assemblies 1,891,462 2,417,095 3,682,243 4,496,684 Less: reserves for obsolete and slow-moving inventories (342,482 ) (800,354 ) $ 3,339,761 $ 3,696,330

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Property and Equipment	NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment, net consist of the following: March 31, December 31, 2018 2017 Computers and computer equipment $ 1,162,948 $ 936,317 Furniture and office equipment 171,586 161,434 Manufacturing equipment and engineering tools 2,190,366 2,041,238 Leasehold improvements 142,982 131,188 3,667,882 3,270,177 Less: accumulated depreciation and amortization (1,843,460 ) (1,688,363 ) $ 1,824,422 $ 1,581,814 During the three month periods ended March 31, 2018 and 2017, the Company incurred $155,097 and $79,835 of depreciation and amortization expense related to property and equipment, respectively.

Accrued Expenses And Other Liab

Accrued Expenses And Other Liabilities	3 Months Ended
	Mar. 31, 2018
Accrued Liabilities And Other Liabilities [Abstract]
Accrued Expenses And Other Liabilities	NOTE 6 – ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: March 31, December 31, 2018 2017 Accrued compensation and related liabilities $ 479,055 $ 457,152 Deferred revenue and customer deposits 871,803 1,033,845 Warranty reserve 58,100 56,774 Other accrued expenses 51,202 386,206 $ 1,460,160 $ 1,933,977

Debt

Debt	3 Months Ended
	Mar. 31, 2018
Debt Disclosure [Abstract]
Debt	NOTE 7 – DEBT Bank Line of Credit In May 2015, the Company entered into a credit agreement (“Credit Agreement”) with a financial institution which provides for a revolving line of credit and a term note payable. Borrowings under the Credit Agreement are collateralized by substantially all of the Company's assets and the personal guarantee of the Company’s Chief Executive Officer (“CEO”). Under the terms of the revolving line of credit, as amended on October 5, 2017, the line of credit was extended through August 31, 2018, and the unrestricted borrowing capacity was increased from $3,000,000 to $3,500,000. Borrowings under the revolving line of credit bear interest at a LIBOR-based rate, as defined in the Credit Agreement, plus 2.5% (totaling 3.93% at December 31, 2017 ), and interest is payable monthly. On February 5, 2018, the Company paid down the outstanding balance on the line of credit with no balance remaining outstanding. On March 2, 2018, the Company cancelled its line of credit with the Bank of West and the personal guarantee of the Company’s CEO was released as a result. Notes Payable In May 2015, the Company issued a note payable in connection with the Credit Agreement totaling $1,250,000 (“May 2015 Note”). Under the terms of the note agreement, interest accrued on the outstanding balance at 3.60% per annum. The May 2015 Note required the Company to make monthly principal and interest payments totaling $36,750 through the maturity date. In July 2016, the Company refinanced the Magma note payable (Note 2) and the May 2015 Note into a new $1,600,000 note payable (“Refinanced Note”). Under the terms of the Refinanced Note, interest accrues on the outstanding balance at 3.80% per annum. The Refinanced Note requires the Company to make monthly principal and interest payments totaling $47,219 through the maturity date of July 31, 2019. As of March 31, 2018, the note has been paid in full. In July 2016, the Company issued a note payable totaling $250,000 (“July 2016 Note”) to a third party. Under the terms of the note agreement, interest accrues on the outstanding balance at 11% per annum. The July 2016 Note requires the Company to make monthly principal and interest payments totaling $9,570 with a maturity date on January 15, 2019. The note is unsecured and guaranteed by the Company’s CEO and is subordinated to borrowings under the Credit Agreement. As of March 31, 2018, the July 2016 Note has been paid in full. In connection with July 2016 Note, the Company issued to the noteholder warrants to purchase shares of the Company’s common stock equal to 20% of the original principal at a price per share equal to $1.78 per share. Accordingly, the Company issued to the noteholder warrants to purchase 28,090 shares of the Company’s common stock at an exercise price of $1.78 per share in July 2016. The relative fair value of the warrants was $24,830. The relative fair value of warrants was estimated using Black-Scholes with the following weighted-average assumptions: fair value of the Company’s common stock at issuance of $1.78 per share; seven year contractual term; 54% volatility; 0% dividend rate; and a risk-free interest rate of 1.42%. Related-Party Notes Payable In July 2016, the Company issued notes payable totaling $350,000 (“July 2016 Related Party Notes”) to two stockholders. Under the terms of the note agreements, interest accrues on the outstanding balance at 11% per annum. The July 2016 Related Party Notes require the Company to make total monthly principal and interest payments of $13,397 with maturity dates on January 15, 2019. The notes are unsecured and guaranteed by the Company’s CEO and are subordinated to borrowings under the Credit Agreement. As of March 31, 2018, the Related Party Notes have been paid in full. In connection with July 2016 Related Party Notes, the Company issued to the noteholders warrants to purchase shares of the Company’s common stock equal to 20% of the original principal at a price per share equal to $1.78 per share. Accordingly, the Company issued to the noteholders warrants to purchase 39,326 shares of the Company’s common stock at an exercise price of $1.78 per share in July 2016. The relative fair value of the warrants was $34,763. The relative fair value of warrants was estimated using Black-Scholes with the following weighted-average assumptions: fair value of the Company’s common stock at issuance of $1.78 per share; seven year contractual term; 54% volatility; 0% dividend rate; and a risk-free interest rate of 1.42%. Debt Discount The relative fair value of the warrants were recorded as debt discounts, decreasing notes payable and related-party notes payable and increasing additional paid-in capital on the accompanying consolidated balance sheets. The debt discounts are being amortized to interest expense over the terms of the corresponding notes payable using the straight-line method which approximates the effective interest method. The debt discount was fully amortized to interest expense when the related notes were paid in full. For the three month periods ended March 31, 2018 and 2017, total debt discount amortization was $24,830 and $5,959, respectively, and is included in interest expense in the accompanying consolidated statements of operations.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Stockholders Equity Note [Abstract]
Stockholders’ Equity	NOTE 8 – STOCKHOLDERS’ EQUITY The Company’s amended and restated certificate of incorporation filed on December 14, 2017, authorizes the Company to issue 10,000,000 shares of preferred stock and 50,000,000 shares of common stock. On February 1, 2018, in connection with the Company’s initial public offering, each share of the Company’s outstanding Series A, Series B, and Series C, Preferred Stock was automatically converted into a share of the Company’s common stock, par value $0.0001 on a one-for-one basis. Common Stock The voting, dividend and liquidation rights of the holders of the common stock are subject to rights of preferred stockholders, if any, as designated by the Board of Directors. Common stockholders have voting rights at all meetings of stockholders and are entitled to one vote for each share held subject to certain limitations otherwise required by law. Dividends may be declared and paid on the common stock as and when determined by the Board of Directors subject to any preferential dividend or other rights of preferred stockholders. The Company does not anticipate declaring any dividends in the foreseeable future. Upon the dissolution or liquidation of the Company, common stockholders are entitled to receive all assets of the Company, subject to any preferential or other rights of preferred stockholders. Initial Public Offering On December 18, 2017, the Company announced the commencement of an underwritten public offering of its common stock, par value $0.0001 per share. The offering became effective on January 31, 2018 and trading began on February 1, 2018. On February 5, 2018, the Company closed the initial public offering selling an aggregate of 3,800,000 shares of common stock at a price to the public of $5.00 for total gross proceeds of $19,000,000, which resulted in net proceeds of $17,485,000, after deducting underwriting discounts and commissions of $1,330,000 and underwriter offering-related transaction costs of $185,000. Additionally, the Company incurred costs associated with the transaction for accounting, legal and other fees and costs of $1,148,352 and a warrant expense of $699,408 for warrants issued to the underwriter pursuant to the underwriter agreement. Such stock issuance costs have been deducted from the proceeds received from the underwriter and disclosed as net proceeds in the consolidated statement of stockholders’ equity. On February 9, 2018, the underwriters exercised their over-allotment option to purchase an additional 200,000 shares of common stock at the public offering price of $5.00 per share, of which 100,000 shares of newly issued common stock were purchased from the Company and 100,000 shares were sold by the Company’s CEO’s family trust. The Company received gross proceeds of $500,000, which resulted in net proceeds to the Company of $465,000, after deducting underwriting discounts and commissions of $35,000. Warrants In conjunction with the Company’s initial public offering, on February 1, 2018, the Company issued warrants to the underwriter to purchase 380,000 shares of common stock at a price of $6.00 pursuant to the Underwriting and Warrant Agreements dated February 1, 2018. The fair value of the warrants was $699,408. The fair value of warrants was estimated using Black-Scholes with the following weighted-average assumptions: fair value of the Company’s common stock at issuance of $5.00 per share; five year contractual term; 42.7% volatility; 0% dividend rate; and a risk-free interest rate of 2.72%. The warrant expense was treated as a stock issuance cost and was deducted from the gross proceeds received in the offering in the current period. A corresponding increase in additional paid in capital was recognized in relation to this transaction. Exercise of Stock Options During the three month period ended March 31, 2018, the Company issued 321,366 shares of common stock for proceeds of $54,575 in cash related to the exercise of stock options. Preferred Stock Preferred Stock may be issued in one or more series, with expressed rights by resolution of the Board of Directors. As of March 31, 2018, there is no outstanding preferred stock. On December 14, 2017, the Company was reincorporated in the State of Delaware. Prior to that date the Company was authorized to issue 5,000,000 shares of preferred stock and 11,000,000 share of common stock. The authorized preferred stock had been further designated as follows: 500,000 as Series A Preferred Stock; 1,500,000 as Series B Preferred Stock; and 2,000,000 as Series C Preferred Stock. The liquidation preferences of the preferred shares are as follows: • Series C Preferred Stock The liquidation preference is $1.50 per share, and the shares have liquidation preference over common stock, Series A Preferred Stock, and Series B Preferred Stock. • Series B Preferred Stock The liquidation preference is $0.50 per share, and the shares have liquidation preference over common stock and Series A Preferred Stock. • Series A Preferred Stock The liquidation preference is $0.25 per share, the shares have liquidation preference over common stock. Series A Preferred Stock, Series B Preferred Stock, and Series C Preferred Stock (“Preferred Shares”) are convertible at any time at the option of the holder into one share of common stock. In addition, preferred shares automatically convert into shares of common stock upon the date specified by the holders of a majority of the then outstanding shares of such securities, or the closing of a public offering of common stock with gross proceeds of not less than $10,000,000 at an offering price of not less than $5.00 per share. Each of the Preferred Shares is non-redeemable, has no par value, is not eligible for dividends, unless declared, and the voting rights of the Preferred Shares is equivalent to the voting rights of common stock. As a result of the Company’s initial public offering exceeding the gross proceeds requirements and the requisite offering price, all of the preferred stock was converted to common stock on February 1, 2018. Regarding unissued Preferred Shares, the Board of Directors is authorized to determine or alter any or all of the rights, preferences, privileges and restrictions granted to or imposed upon wholly unissued series of Preferred Shares, and to fix or alter the number of shares comprising any such series and the designation thereof, or any of them, and to provide for rights and terms of redemption or conversion of the shares of any such series. Stock Options The Company maintained a stock option plan that was established in 2000 (“2000 Plan”). In November 2008, the Company increased the maximum number of shares of the Company's common stock that were issuable under the 2000 Plan to 3,000,000 shares of the Company's common stock. The 2000 Plan has expired and no future grants may be awarded under the 2000 Plan. In December 2011, the Company adopted a stock option plan (“2011 Plan”) under which the Company may issue up to 1,500,000 shares of the Company’s common stock and, as of December 31, 2017, the Company had 240,000 shares of common stock remaining unissued under the 2011 Plan. The 2011 Plan was terminated by the Board of Directors on October 10, 2017, and accordingly, no shares are available for issuance under the 2011 Plan. In December 2015, the Company adopted a stock option plan (“2015 Plan”) under which the Company may issue up to 1,500,000 shares of the Company’s common stock and, as of December 31, 2017, the Company had 790,000 shares of common stock remaining unissued under the 2015 Plan. The terms of the 2011 Plan and 2015 Plan provided for the grant of incentive options to employees and non-statutory options to employees, directors and consultants of the Company. The 2015 Plan was terminated by the board of directors on October 10, 2017, and accordingly, no shares are available for issuance under the 2015 Plan. The Board of Directors adopted the 2017 Equity Incentive Plan on October 10, 2017 (the “2017 Plan”). The 2017 Plan allows for the grant of a variety of equity vehicles to provide flexibility in implementing equity awards, including incentive stock options, non-qualified stock options, restricted stock grants, unrestricted stock grants and restricted stock units and stock bonuses and performance-based awards. On December 18, 2017, the Company stockholders approved the “2017 Plan” under which the Company may issue up to 1,500,000 shares of the Company’s common stock. The exercise price per share for options under the 2011 Plan, 2015 Plan and 2017 Plan is determined by the Company’s Board of Directors, for incentive stock options the exercise price shall not be less than the fair market value of the Company's common stock on the date of grant, except that for incentive options granted to an owner/employee with a greater than 10% ownership interest in the Company, the exercise price shall not be less than 110% of the fair market value of the Company's common stock on the date of grant. Options under the plans expire no more than ten years after the date of grant and/or within five years after the date of the grant for incentive options granted to an owner/employee with a greater than 10% ownership interest in the Company. A summary of stock option activity under the plans during the three month period ended March 31, 2018 is as follows: Stock Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at January 1, 2018 2,379,444 $ 1.00 5.30 $ 15,472,456 Granted - $ - Forfeited / Cancelled (24,582 ) $ 1.43 Exercised (416,416 ) $ 0.86 Outstanding at March 31, 2018 1,938,446 $ 1.02 5.69 $ 6,550,748 Exercisable at March 31, 2018 1,529,689 $ 0.81 4.82 $ 5,489,827 Vested and expected to vest at March 31, 2018 1,928,671 $ 1.02 5.67 $ 6,525,894 The following table presents details of the assumptions used to calculate the weighted-average grant date fair value of common stock options granted by the Company. There were no options issued during the three month periods ended March 31, 2018 and 2017. For The Three Month Periods Ended March 31, 2018 2017 Expected term (in years) - - Expected volatility - - Risk-free interest rate - - Weighted average grant date fair value per share - - Grant date fair value of options vested $ 1,240,805 $ 1,428,468 Intrinsic value of options exercised $ 1,472,506 $ 30,000 As of March 31, 2018, the amount of unearned stock-based compensation currently estimated to be expensed during the remainder of 2018 through 2020 , 1.0 If there are any modifications or cancellations of the underlying unvested awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense or calculate and record additional expense. Future stock-based compensation expense and unearned stock-based compensation will increase to the extent that the Company grants additional common stock options or other stock-based awards. Stock-based compensation expense for the three month periods ended March 31, 2018 and 2017 was comprised of the following: For The Three Month Periods ended March 31, 2018 2017 Stock-based compensation classified as: Cost of revenue $ 3,190 $ - General and administrative 21,820 18,500 Marketing and selling 2,949 4,900 Research and development 7,359 1,226 $ 35,318 $ 24,626 Warrants The following table summarizes the Company’s warrant activity during the three month period ended March 31, 2018: Number of Shares Weighted Average Exercise Price Warrants outstanding – January 1, 2018 198,996 $ 1.11 Warrants granted 380,000 6.00 Warrants exercised - - Warrants outstanding – March 31, 2018 578,996 $ 4.32 In connection with the Company’s initial public offering, the Company issued warrants to purchase 380,000 shares of common stock, as described above.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9 – COMMITMENTS AND CONTINGENCIES Legal From time to time the Company is subject to various legal claims and proceedings arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of any such matters as of March 31, 2018, will not have a materially adverse effect on the unaudited consolidated financial position or results of operations of the Company. Guarantees and Indemnities The Company has made certain indemnities, under which it may be required to make payments to an indemnified party, in relation to certain transactions. The Company indemnifies its directors, officers, employees and agents to the maximum extent permitted under the laws of the State of Delaware. In connection with its facility lease, the Company has indemnified its lessor for certain claims arising from the use of the facilities. Also, in connection with its Credit Agreement (Note 7), the Company has agreed to indemnify its lender and others related to the use of the proceeds and other matters. The duration of the indemnities varies, and in many cases is indefinite. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets. Leases The Company leases its offices, manufacturing, and warehouse facilities in San Diego County under non-cancelable operating leases that expire in August 2018. The Company also leases a small office near Munich, Germany for GmbH and an office located in Utah County. For the three month periods ended March 31, 2018 and 2017, rent expense was $143,928 and $103,858, respectively

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 10 – RELATED PARTY TRANSACTIONS Board fees paid by the Company, including stock-based compensation, for the three month periods ended March 31, 2018 and 2017, totaled $36,450 and $28,795, respectively, and are included in general and administrative expenses in the accompanying consolidated statements of operations. The Company has engaged a related-party advertising company whose president is a member of the Board of Directors of the Company. Amounts paid for services are included in marketing and selling expense in the accompanying consolidated statements of operations. Total fees paid for the three month periods ended March 31, 2018 and 2017 were $4,000 and $8,650, respectively. The Company has engaged a related-party law firm (a principal of that firm owns shares in the Company) to provide legal services. Legal fees paid to this firm are included in general and administrative expenses in the accompanying consolidated statements of operations for the three month periods ended March 31, 2018 and 2017 and totaled $9,998 and $9,000, respectively. Interest expense on all related-party notes payable for the three month periods ended March 31, 2018 and 2017 was $16,599 and $11,312, respectively. Effective August 1, 2016, the Company entered into a management services with a company owned by the former Chief Executive Officer of Magma. The agreement calls for payments of $180,000 per year for the first two years paid in monthly installments. In year three, the amount is reduced to $37,500 for the year paid in monthly installments. Additionally, the Company granted 30,000 options in conjunction with execution of this agreement. Payments for the three month periods ended March 31, 2018 and 2017 were $45,000 and $45,000, respectively

Unaudited Net (Loss) Income Pe

Unaudited Net (Loss) Income Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Unaudited Net (Loss) Income Per Share	NOTE 11 – UNAUDITED NET (LOSS) INCOME PER SHARE Net (Loss) Income Per Share Basic and diluted net (loss) income per share was calculated as follows for the three month periods ended March 31, 2018 and 2017 (unaudited): For The Three Month Periods ended March 31, 2018 2017 Basic and diluted net (loss) income per share attributable to common stockholders: Numerator: Net (loss) income attributable to common stockholders $ (794,419 ) $ 79,147 Denominator: Weighted average common shares outstanding - basic 10,140,459 5,379,141 Effect of dilutive securities - 4,378,088 Weighted average common shares outstanding - diluted 10,140,459 9,757,229 Net (loss) income per common share attributable to common stockholders: Basic $ (0.08 ) $ 0.01 Diluted $ (0.08 ) $ 0.01

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 12 – FAIR VALUE MEASUREMENTS The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. These tiers include: • Level 1, defined as quoted market prices in active markets for identical assets or liabilities; • Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, model-based valuation techniques for which all significant assumptions are observable in the market, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3, defined as unobservable inputs that are not corroborated by market data. The carrying value of financial instruments including cash equivalents, accounts receivable and accounts payable and accrued expenses and other liabilities approximate fair value due to the short-term nature of these instruments. Assets and liabilities assumed in the acquisition of Magma were recorded at fair value based upon the Company’s market assumptions which approximated carrying value (except for acquired intangible assets – Note 2) due to the short-term nature of the instruments.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2018
Segment Reporting [Abstract]
Segment and Geographic Information	NOTE 13 – SEGMENT AND GEOGRAPHIC INFORMATION The Company operates in one reportable segment: the design and manufacture of high-performance computer systems and components. The Company evaluates financial performance on a company-wide basis. To date, a majority of the Company’s international sales relate to shipments of products to its U.S. customers’ international manufacturing sites or third‑party hubs. Net product sales derived from shipments to international destinations, primarily to the United Kingdom

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14 – SUBSEQUENT EVENTS On April 30, 2018, the Board of Directors approved a $300,000 intercompany loan to SkyScale which is a 50% owned joint venture with Jacoma Investments, LLC, an entity controlled by our board member Jack Harrison. The Company has evaluated subsequent events after the condensed consolidated balance sheet date of March 31, 2018 through the date of filing. Based upon its evaluation, management has determined that, other than as disclosed in the accompanying notes, no subsequent events have occurred that would require recognition in the accompanying consolidated financial statements or disclosure in the notes thereto.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying financial statements have been prepared on an accrual basis of accounting in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”), as set forth in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). Certain prior year balances have been reclassified to conform to the current year presentation particularly with the presentation of common stock which is now presented with a par value of $0.0001 per share in accordance with our reincorporation as a Delaware corporation.
Principles of Consolidation	Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of OSS, which includes the results from the Magma acquisition and Ion business combination since their respective dates of acquisition, its wholly-owned subsidiary, OSS GmbH, and the accounts of the joint venture, SkyScale LLC (collectively referred to as the “Company”). Intercompany balances and transactions have been eliminated in consolidation. On April 6, 2017, the Company and Jacoma Investments, LLC, an entity owned by our board member Jack Harrison, formed a joint venture, SkyScale, LLC (“SkyScale”), to engage in the business of providing high performance computing capabilities as cloud services. In accordance with the terms of the contribution agreement, Jacoma Investments, LLC agreed to contribute $750,000 in capital and the Company agreed to contribute $750,000 in the form of credits to purchase equipment, personnel or support services from the Company. Each party received 50% membership interest in the joint venture. Management determined that SkyScale is a variable interest entity primarily because it is thinly capitalized and may require additional capital to finance its activities. Management also determined that the Company is the primary beneficiary of SkyScale based primarily on the related party nature of SkyScale’s decision-makers and daily business operators. As of March 31, 2018, SkyScale’s significant assets were comprised of cash, cash equivalents and receivables of $170,888 and computer-related equipment and other assets of $759,058, its significant liabilities were comprised of trade accounts payable of $222,395, and its net members’ equity totaled $707,551. For the three month period ended March 31, 2018, SkyScale’s revenues were $120,539, its operating expenses (primarily personnel costs) aggregated $108,849, and its net loss was $135,290. SkyScale did not have any operations in the three month period ended March 31, 2017. The non-controlling interest attributable to SkyScale is shown as a component of equity on the consolidated balance sheets and the share of the profit (loss) attributable to the non-controlling interest is shown as a component of profit (loss) in the consolidated statements of operations.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosures of contingent assets, liabilities, and expenses at the date of the consolidated financial statements during the reporting period. Significant estimates made by management include, among others, the fair value of net assets of Magma acquired in July 2016 and ION in July 2017, the allowance for doubtful accounts, fair value of stock options and warrants, recoverability of inventories and long-lived assets, and realizability of deferred tax assets. Actual results could differ from those estimates.
Concentration Risks	Concentration Risks At times, deposits held with financial institutions may exceed the amount of insurance provided by the Federal Deposit Insurance Corporation (“FDIC”), which provides basic deposit coverage with limits up to $250,000 per owner. As of March 31, 2018, the Company had $8,766,990 in excess of the insurance limits. The Company has not experienced any such losses in these accounts. At March 31, 2018 and December 31, 2017, three customers accounted for 63% and 69% respectively of net trade accounts receivable. For the three month periods ended March 31, 2018 and 2017, three customers accounted for 54% and 46% of net revenue. During the three month periods ended March 31, 2018 and 2017, the Company made purchases from three suppliers which represented approximately 48% and 45% of materials purchased.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist principally of cash, accounts receivable, accounts payable, accrued expenses and debt instruments. The fair value of the Company’s cash equivalents is determined based on quoted prices in active markets for identical assets or Level 1 inputs. The Company recognizes transfers between Levels 1 through 3 of the fair value hierarchy at the beginning of the reporting period. The fair values of the Company’s variable rate debt instruments approximate its carrying values based upon management’s assessment of the current credit markets. It is not practicable to estimate the fair value of the Company’s fixed rate instruments (including related party notes payable) due to the private nature of those transactions and the lack of an observable market.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents consist of cash on deposit and money market accounts. The Company considers all highly liquid temporary cash investments with an initial maturity of three months or less when acquired to be cash equivalents. Management believes that the carrying amounts of cash equivalents approximate their fair value because of the short maturity period.
Accounts Receivable	Accounts Receivable Accounts receivable are presented net of an allowance for doubtful accounts. The allowance for doubtful accounts is an estimate to cover the losses resulting from the inability of customers to make payments on their outstanding balances. In estimating the required allowance, management considers the overall quality and aging of the accounts receivable, specific customer circumstances, current economic trends, and historical experience with collections. At March 31, 2018 and December 31, 2017, the allowance for doubtful accounts is $93,228 and $2,101, respectively.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value determined on a first-in, first-out basis. The Company uses the average cost method for purposes of determining cost, which approximates the first-in, first-out method. The Company establishes reserves on its inventories to write-down the carrying value of its estimated obsolete or excess inventories to estimated net realizable value based upon observations of historical usage and assumptions about future demand and market conditions. In addition, the Company considers changes in the market value of components in determining the net realizable value of its inventory. Inventory reserves are considered permanent adjustments to the cost basis of the inventories and are not typically reversed until the specific inventories are sold or otherwise disposed.
Property and Equipment	Property and Equipment Property and equipment, other than leasehold improvements, are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, generally from three to five years. Leasehold improvements are recorded at cost and are amortized using the straight-line method over the shorter of the remaining lease term or the estimated useful life of the related asset. Tooling and test equipment includes capitalized labor costs associated with the development of the related tooling and test equipment. Costs incurred for maintenance and repairs are expensed as incurred, and expenditures for major replacements and improvements are capitalized. Upon retirement or sale, the cost and related accumulated depreciation and amortization of disposed assets are removed from the accounts and any resulting gain or loss is included in other expense, net.
Goodwill	Goodwill Goodwill relates to the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is not amortized, but instead the Company assesses possible impairment of goodwill on December 31, of each year and when an event occurs that may trigger such a review. Determining whether a triggering event has occurred involves significant judgment by the Company. Management assesses goodwill for impairment at the reporting unit level, and has determined that the Company only has one reporting unit. In assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company assesses relevant events and circumstances that may impact the fair value and the carrying amount of a reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments by management. These judgments include the consideration of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance and events which are specific to the Company. Each factor is assessed to determine whether it impacts the impairment test positively or negatively, and the magnitude of any such impact. After the qualitative assessment, the impairment testing is a two-step process. In the first step, the fair value of each reporting unit is compared to its carrying value. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, then goodwill is not impaired and no further testing is required. If the carrying value of the net assets assigned to the reporting unit exceeds its fair value, then the second step is performed in order to determine the implied fair value of the reporting unit’s goodwill and an impairment loss is recorded for an amount equal to the difference between the implied fair value and the carrying value of the goodwill. Determining the fair value of a reporting unit and goodwill is judgmental and involves the use of significant estimates and assumptions. Based upon its impairment testing, management determined that no impairment loss has occurred during the three month periods ended March 31, 2018 and 2017. There can be no assurance, however, that market conditions will not change or demand for the Company’s products will continue, which could result in an impairment of goodwill in the future.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews the recoverability of its other long-lived assets, such as property and equipment and definite lived intangible assets, whenever events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable. The assessment for possible impairment is based on the Company’s ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows, undiscounted and without interest charges, from the related operations. If the aggregate of the net cash flows is less than the carrying value of such assets, an impairment loss is recognized for the difference between estimated fair value and carrying value. The determination and measurement of impairment of long-lived assets requires management to estimate future cash flows and the fair value of long-lived assets. Management determined that there were no impairment charges to be recognized during the three month periods ended March 31, 2018 and 2017. There can be no assurance, however, that market conditions will not change or demand for the Company’s products will continue, which could result in an impairment of long-lived assets in the future.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605. Accordingly, revenue from the sale of products is recognized when there is evidence of an arrangement, the selling price is fixed or determinable, title and risk of loss has transferred to the customer, any installation or service obligations have been satisfied, and collection is reasonably assured. Net revenue includes deductions for customer discounts and actual and estimated returns. All amounts billed to customers related to shipping and handling are classified as net sales. Customer agreements , ; r ' ; y ' are s is , r ' y ' During the three month periods ended March 31, 2018 and 2017, the Company recorded revenue from product sales that are held in vendor managed inventory under these agreements of $990,401 and $1,898,510, respectively. As of March 31, 2018 and December 31, 2017, $721,335 and $996,588, respectively, of products sold through those dates were held by the Company in the vendor management program.
Warranty Reserve	Warranty Reserve The Company offers product warranties that generally extend for one year from the date of sale. Such warranties require the Company to repair or replace defective product returned to the Company during the warranty period at While such costs have historically been within management’s expectations and the provisions established, unexpected changes in failure rates could have a material adverse impact on the Company, requiring additional warranty reserves and could adversely affect the Company’s gross profit and gross margins.
Shipping and Handling Costs	Shipping and Handling Costs The Company's shipping and handling costs are included in cost of goods sold for all periods presented.
Foreign Currency	Foreign Currency OSS GmbH operates as an extension of OSS’s domestic operations. The functional currency of OSS GmbH is the Euro. Transactions denominated in currencies other than the functional currency are remeasured to the functional currency at the average exchange rate in effect during the period. At the end of each reporting period, monetary assets and liabilities are remeasured using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Foreign currency transaction gains and losses are recorded in other income (expense), net in the consolidated statements of operations.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for employee and director share-based compensation in accordance with the provisions of ASC Topic 718 “Compensation – Stock Compensation” All transactions in which goods or services are the consideration received for the issuance of equity instruments to non-employees are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The measurement date used to determine the estimated fair value of the equity instrument issued is the earlier of the date on which the third-party performance is complete or the date on which it is probable that performance will occur. Employee and director stock-based compensation expense recognized during the period is based on the value of the portion of stock-based payment awards that is ultimately expected to vest during the period. Given that stock-based compensation expense recognized in the accompanying consolidated statements of operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. The Company’s estimated average forfeiture rates are based on historical forfeiture experience and estimated future forfeitures. The estimated fair value of common stock option awards is calculated using the Black-Scholes option pricing model. The Black-Scholes model requires subjective assumptions regarding future stock price volatility and expected time to exercise, along with assumptions about the risk-free interest rate and expected dividends, all of which affect the estimated fair values of the Company’s common stock option awards. Given a lack of historical stock option exercises, the expected term of options granted is calculated as the average of the weighted vesting period and the contractual expiration date of the option. This calculation is based on the safe harbor method permitted by the Securities and Exchange Commission in instances where the vesting and exercise terms of options granted meet certain conditions and where limited historical exercise data is available. The expected volatility is based on the historical volatility of the common stock of comparable public companies that operate in similar industries as the Company. The risk-free rate selected to value any particular grant is based on the U.S. Treasury rate that corresponds to the expected term of the grant effective as of the date of the grant. The expected dividend assumption is based on the Company’s history and management’s expectation regarding dividend payouts. Compensation expense for common stock option awards with graded vesting schedules is recognized on a straight-line basis over the requisite service period for the last separately vesting portion of the award, provided that the accumulated cost recognized as of any date at least equals the value of the vested portion of the award. If there are any modifications or cancellations of the underlying vested or unvested stock-based awards, the Company may be required to accelerate, increase or cancel any remaining unearned stock-based compensation expense, or record additional expense for vested stock-based awards. Future stock-based compensation expense and unearned stock- based compensation may increase to the extent that the Company grants additional common stock options or other stock-based awards.
Debt Discounts	Debt Discounts The debt discounts, which originated from the relative fair value of the warrants issued in connection with note payable and related-party notes payable during 2016 and 2015 (Note 7), are recorded against note payable and related-party notes payable in the accompanying consolidated balance sheets.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred and included in marketing and selling expense in the accompanying consolidated statements of operations. Advertising costs for the three month periods ended March 31, 2018 and 2017 were $17,626 and $32,088, respectively.
Research and Development Expense	Research and Development Expenses Research and development expenditures are expensed in the period incurred. Research and development expenses primarily consist of salaries, benefits and stock-based compensation, as well as consulting expenses and allocated facilities and other overhead costs. Research and development activities include the development of new technologies, features and functionality in support of the Company’s products and customer needs.
Income Taxes	Income Taxes The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. Under ASC Topic 740, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC Topic 740 provides requirements for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company files income tax returns in the U.S. federal jurisdiction, California and overseas in Germany and has open tax statutes for federal taxes for the years ended December 31, 2014 through 2016. For California, the open tax statutes are for years December 31, 2013 through 2016 and for Germany the open years include December 31, 2015 and 2016. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act reduces the corporate tax rate to 21%, effective January 1, 2018. Consequently, the Company has recorded a decrease related to deferred tax assets and deferred tax liabilities as of December 31, 2017. Except for this adjustment, the Company does not foresee material changes to its gross liability of uncertain tax positions within the next twelve months.
Interest Expense	Interest Expense Interest expense consists primarily of interest associated with the Company’s issued debt including the amortization of debt discounts. The Company recognizes the amortization of debt discounts and the amortization of interest costs using a straight-line method which approximates the effective interest method.
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average common shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average shares and dilutive potential common shares outstanding during the period. Dilutive potential shares consist of dilutive shares issuable and the exercise or vesting of outstanding stock options and warrants, respectively, computed using the treasury stock method. During a period where a net loss is incurred, dilutive potential shares are excluded from the computation of dilutive net loss per share, as inclusion is anti-dilutive. On February 1, 2018, in connection with the Company’s initial public offering, the Company’s outstanding Series A, Series B, and Series C, Preferred Stock was automatically converted to common stock, par value $0.0001.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers Revenue Recognition In February 2016, the FASB issued ASU No. 2016-02, Leases In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business December 31, 2019 In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment December 31, 2021 In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting December 31, 2019
Recently Implemented Accounting Pronouncements	Recently implemented accounting pronouncements In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330) ("ASU 2015-11"). The amendments in ASU 2015-11 require that an entity measure inventory within the scope of the standard at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transaction. The amendments in this update more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards. ASU 2015-11 is effective for annual and interim periods beginning on or after December 15, 2017. The Company adopted ASU No. 2015-11 in the first quarter of 2018, without a material impact to its consolidated financial statements and disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718) (“ASU 2016-09”), which simplified certain aspects of the accounting for stock-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. ASU 2016-09 will be effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The Company adopted ASU No. 2016-09 in the first quarter of 2018, with no impact to its consolidated financial statements and disclosures.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of Definite Lived Intangible Assets	Definite lived intangible assets as of March 31, 2018: Expected Life Average Remaining Life Gross Intangible Assets Accumulated Amortization Net Intangible Assets Drawings and technology 3 years 1.25 years $ 760,207 $ (432,896 ) $ 327,311 Customer lists and relationships 3 years 1.25 years 398,717 (227,047 ) 171,670 Trademarks, URLs and other 3 years 1.25 years 27,759 (16,995 ) 10,764 $ 1,186,683 $ (676,938 ) $ 509,745 Definite lived intangible assets as of December 31, 2017: Expected Life Average Remaining Life Gross Intangible Assets Accumulated Amortization Net Intangible Assets Drawings and technology 3 years 1.5 years $ 760,207 $ (369,545 ) $ 390,662 Customer lists and relationships 3 years 1.5 years 398,717 (193,821 ) 204,896 Trademarks, URLs and other 3 years 1.5 years 27,759 (14,912 ) 12,847 $ 1,186,683 $ (578,278 ) $ 608,405
Schedule of Amortization Expense of Definite Lived Intangible Assets	The amortization expense of the definite lived intangible assets for the years remaining is as follows: 2018 2019 Total $ 295,981 $ 213,764 $ 509,745
Ion Software and Services
Summary of Allocation of Total Consideration to the Acquired Net Assets	The allocation of the total consideration to the acquired net assets as of the acquisition date for Ion is as follows: Equipment at estimated fair value $ 297,700 Amount paid (67,000 ) Gain on acquisition of equipment to be recognized over the three year contract service period $ 230,700
Mission Technology Group, Inc
Summary of Allocation of Total Consideration to the Acquired Net Assets	The allocation of the total consideration to the acquired net assets as of the acquisition date for Magma was as follows: Cash $ 68,308 Accounts receivable 356,499 Prepaid expenses 93,800 Inventories 1,208,675 Property and equipment 143,705 Customer lists and relationships 398,717 Drawings and technology 760,207 Trademarks and URL's 25,000 Other intangibles 2,759 Deposits and other 17,202 Accounts payable (842,843 ) Warranty reserve (15,000 ) Deferred tax liability (266,620 ) Accrued expenses (816,249 ) Other accrued liabilities (50,000 ) Line of credit (517,335 ) Notes payable, current portion (157,572 ) Notes payable, long-term (200,000 ) Total fair value excluding goodwill 209,253 Goodwill 1,547,358 Total consideration $ 1,756,611

Accounts Receivable (Tables)

Accounts Receivable (Tables)	3 Months Ended
	Mar. 31, 2018
Accounts Receivable Net Current [Abstract]
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following: March 31, December 31, 2018 2017 Accounts receivable $ 5,306,779 $ 5,194,831 Less: allowance for doubtful accounts (93,228 ) (2,101 ) $ 5,213,551 $ 5,192,730

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Summary of Inventories, Net	Inventories, net consist of the following: March 31, December 31, 2018 2017 Raw materials $ 1,790,781 $ 2,079,589 Sub-assemblies 1,891,462 2,417,095 3,682,243 4,496,684 Less: reserves for obsolete and slow-moving inventories (342,482 ) (800,354 ) $ 3,339,761 $ 3,696,330

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Property Plant And Equipment, Net	Property and equipment, net consist of the following: March 31, December 31, 2018 2017 Computers and computer equipment $ 1,162,948 $ 936,317 Furniture and office equipment 171,586 161,434 Manufacturing equipment and engineering tools 2,190,366 2,041,238 Leasehold improvements 142,982 131,188 3,667,882 3,270,177 Less: accumulated depreciation and amortization (1,843,460 ) (1,688,363 ) $ 1,824,422 $ 1,581,814

Accrued Expenses And Other Li27

Accrued Expenses And Other Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Accrued Liabilities And Other Liabilities [Abstract]
Schedule of Accrued Expenses And Other Liabilities	Accrued expenses and other liabilities consist of the following: March 31, December 31, 2018 2017 Accrued compensation and related liabilities $ 479,055 $ 457,152 Deferred revenue and customer deposits 871,803 1,033,845 Warranty reserve 58,100 56,774 Other accrued expenses 51,202 386,206 $ 1,460,160 $ 1,933,977

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders Equity Note [Abstract]
Summary of Stock Option Activity	A summary of stock option activity under the plans during the three month period ended March 31, 2018 is as follows: Stock Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Outstanding at January 1, 2018 2,379,444 $ 1.00 5.30 $ 15,472,456 Granted - $ - Forfeited / Cancelled (24,582 ) $ 1.43 Exercised (416,416 ) $ 0.86 Outstanding at March 31, 2018 1,938,446 $ 1.02 5.69 $ 6,550,748 Exercisable at March 31, 2018 1,529,689 $ 0.81 4.82 $ 5,489,827 Vested and expected to vest at March 31, 2018 1,928,671 $ 1.02 5.67 $ 6,525,894
Schedule of Assumption to Calculate Weighted Average Grant Date Fair Value of Options Grant	The following table presents details of the assumptions used to calculate the weighted-average grant date fair value of common stock options granted by the Company. There were no options issued during the three month periods ended March 31, 2018 and 2017. For The Three Month Periods Ended March 31, 2018 2017 Expected term (in years) - - Expected volatility - - Risk-free interest rate - - Weighted average grant date fair value per share - - Grant date fair value of options vested $ 1,240,805 $ 1,428,468 Intrinsic value of options exercised $ 1,472,506 $ 30,000
Summary of Stock-Based Compensation Expense	Stock-based compensation expense for the three month periods ended March 31, 2018 and 2017 was comprised of the following: For The Three Month Periods ended March 31, 2018 2017 Stock-based compensation classified as: Cost of revenue $ 3,190 $ - General and administrative 21,820 18,500 Marketing and selling 2,949 4,900 Research and development 7,359 1,226 $ 35,318 $ 24,626
Schedule of Warrant Activity	The following table summarizes the Company’s warrant activity during the three month period ended March 31, 2018: Number of Shares Weighted Average Exercise Price Warrants outstanding – January 1, 2018 198,996 $ 1.11 Warrants granted 380,000 6.00 Warrants exercised - - Warrants outstanding – March 31, 2018 578,996 $ 4.32

Unaudited Net (Loss) Income 29

Unaudited Net (Loss) Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Summary of Basic and Diluted Net (Loss) Income Per Share	Basic and diluted net (loss) income per share was calculated as follows for the three month periods ended March 31, 2018 and 2017 (unaudited): For The Three Month Periods ended March 31, 2018 2017 Basic and diluted net (loss) income per share attributable to common stockholders: Numerator: Net (loss) income attributable to common stockholders $ (794,419 ) $ 79,147 Denominator: Weighted average common shares outstanding - basic 10,140,459 5,379,141 Effect of dilutive securities - 4,378,088 Weighted average common shares outstanding - diluted 10,140,459 9,757,229 Net (loss) income per common share attributable to common stockholders: Basic $ (0.08 ) $ 0.01 Diluted $ (0.08 ) $ 0.01

Summary of Significant Accoun30

Summary of Significant Accounting Policies- Additional Information (Details)	Feb. 01, 2018$ / sharesshares	Apr. 30, 2017USD ($)	Jul. 31, 2017USD ($)	Mar. 31, 2018USD ($)CustomerSupplierReportingUnit$ / shares	Mar. 31, 2017USD ($)CustomerSupplier	Dec. 31, 2017USD ($)Customer$ / shares	Apr. 06, 2017USD ($)
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value | $ / shares				$ 0.0001		$ 0.0001
Property and equipment, net				$ 1,824,422		$ 1,581,814
Operating expenses				2,914,694	$ 1,883,222
Net loss				(794,419)	79,147
Maximum basic deposit coverage per owner				250,000
Aggregate amount of deposits coverage limits excess $250,000				8,766,990
Allowance for doubtful accounts receivable				$ 93,228		$ 2,101
Number of reporting units | ReportingUnit				1
Goodwill impairment loss				$ 0	0
Impairment charges of long-lived asset				0	0
Revenue from product sales				7,119,712	6,336,338
Amortization of debt discount				24,830	5,959
Advertising costs				$ 17,626	$ 32,088
Corporate tax rate				21.00%
Series A Convertible Preferred Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value | $ / shares	$ 0.0001
Series B Convertible Preferred Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value | $ / shares	0.0001
Series C Convertible Preferred Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value | $ / shares	$ 0.0001
Net Trade Accounts Receivable | Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, number of customers | Customer				3		3
Concentration risk, percentage				63.00%		69.00%
Sales Revenue, Net | Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, number of customers | Customer				3	3
Concentration risk, percentage				54.00%	46.00%
Cost of Goods, Total | Supplier Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage				48.00%	45.00%
Concentration risk, number of suppliers | Supplier				3	3
Delaware
Summary Of Significant Accounting Policies [Line Items]
Common stock, par value | $ / shares				$ 0.0001
Initial Public Offering
Summary Of Significant Accounting Policies [Line Items]
Common stock sold under public offering | shares	3,800,000
Public offering price per share | $ / shares	$ 5
Technology and Software License Agreement | Western Digital
Summary Of Significant Accounting Policies [Line Items]
Consideration paid for assets acquired			$ 67,000
Receivable for services rendered			$ 1,400,000
Servicer payments period			3 years
Vendor Managed Inventory Program Agreements
Summary Of Significant Accounting Policies [Line Items]
Revenue from product sales				$ 990,401	$ 1,898,510
Products sold but held in inventory				$ 721,335		$ 996,588
Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives				3 years
Minimum | Technology and Software License Agreement | Western Digital
Summary Of Significant Accounting Policies [Line Items]
Prospective Royalties payable			$ 2,500
Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives				5 years
Percentage of uncertain income tax positions not recognized				50.00%
Maximum | Technology and Software License Agreement | Western Digital
Summary Of Significant Accounting Policies [Line Items]
Prospective Royalties payable			$ 5,000
SkyScale, LLC
Summary Of Significant Accounting Policies [Line Items]
Member contribution to joint venture		$ 750,000
Interest received in joint venture		50.00%
Cash, cash equivalents and receivables				$ 170,888
Trade accounts payable				222,395
Members' equity				707,551
Revenues				120,539
Operating expenses				108,849	$ 0
Net loss				(135,290)
SkyScale, LLC | Computer-related Equipment and Other Assets
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, net				$ 759,058
Jacoma Investments, LLC
Summary Of Significant Accounting Policies [Line Items]
Member contribution to joint venture							$ 750,000
Interest received in joint venture							50.00%
One Stop Systems, Inc.
Summary Of Significant Accounting Policies [Line Items]
Capital contribution from parent							$ 750,000
Interest received							50.00%

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($)	Jul. 15, 2016	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill		$ 3,324,128		$ 3,324,128
Net revenue		7,119,712	$ 6,336,338
Net (loss) income		(794,419)	79,147
Amortization expense		$ 98,660	99,208
Mission Technology Group, Inc
Business Acquisition [Line Items]
Business acquisition date	Jul. 15, 2016
Percentage of shares acquired	100.00%
Common stock shares issued	1,263,749
Common stock shares issued, Value	$ 1,756,611
Weighted-average amortization period of intangible assets acquired		3 years
Goodwill	1,547,358
Intangibles	1,186,683
Acquired goodwill and intangibles	2,734,041
Tax-deductible goodwill	496,275
Tax-deductible goodwill original basis amount	$ 1,294,624
Net revenue			1,564,365
Net (loss) income			$ 11,620
Ion Software and Services
Business Acquisition [Line Items]
Services agreement grants, rights and obligations period		3 years
Services agreement grants, rights and obligations fixed mode of payments		quarterly
Deferred gain recognized period		36 months
Ion Software and Services | Revenue
Business Acquisition [Line Items]
Deferred revenue recognized		$ 28,838
Ion Software and Services | General and Administrative Expenses
Business Acquisition [Line Items]
Shipping and storage fees related to acquisition				$ 65,805

Acquisitions - Summary of Alloc

Acquisitions - Summary of Allocation of Total Consideration to the Acquired Net Assets (Details) - USD ($)	May 09, 2017	Mar. 31, 2018	Dec. 31, 2017	Jul. 15, 2016
Business Acquisition [Line Items]
Goodwill		$ 3,324,128	$ 3,324,128
Mission Technology Group, Inc
Business Acquisition [Line Items]
Cash				$ 68,308
Accounts receivable				356,499
Prepaid expenses				93,800
Inventories				1,208,675
Property and equipment				143,705
Intangibles				1,186,683
Deposits and other				17,202
Accounts payable				(842,843)
Warranty reserve				(15,000)
Deferred tax liability				(266,620)
Accrued expenses				(816,249)
Other accrued liabilities				(50,000)
Line of credit				(517,335)
Notes payable, current portion				(157,572)
Notes payable, long-term				(200,000)
Total fair value excluding goodwill				209,253
Goodwill				1,547,358
Total consideration				1,756,611
Mission Technology Group, Inc | Customer Lists and Relationships
Business Acquisition [Line Items]
Intangibles				398,717
Mission Technology Group, Inc | Drawings and Technology
Business Acquisition [Line Items]
Intangibles				760,207
Mission Technology Group, Inc | Trademarks and URL's
Business Acquisition [Line Items]
Intangibles				25,000
Mission Technology Group, Inc | Other Intangibles
Business Acquisition [Line Items]
Intangibles				$ 2,759
Ion Software and Services
Business Acquisition [Line Items]
Property and equipment	$ 297,700
Amount paid	(67,000)
Gain on acquisition of equipment to be recognized over the three year contract service period	$ 230,700

Acquisitions - Schedule of Defi

Acquisitions - Schedule of Definite Lived Intangible Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Definite lived intangible assets, Gross	$ 1,186,683	$ 1,186,683
Definite lived intangible, Accumulated Amortization	(676,938)	(578,278)
Definite lived intangible assets, Net	$ 509,745	$ 608,405
Drawings and Technology
Business Acquisition [Line Items]
Definite lived intangible assets, Expected Life	3 years	3 years
Definite lived intangible assets, Average Remaining Life	1 year 3 months	1 year 6 months
Definite lived intangible assets, Gross	$ 760,207	$ 760,207
Definite lived intangible, Accumulated Amortization	(432,896)	(369,545)
Definite lived intangible assets, Net	$ 327,311	$ 390,662
Customer Lists and Relationships
Business Acquisition [Line Items]
Definite lived intangible assets, Expected Life	3 years	3 years
Definite lived intangible assets, Average Remaining Life	1 year 3 months	1 year 6 months
Definite lived intangible assets, Gross	$ 398,717	$ 398,717
Definite lived intangible, Accumulated Amortization	(227,047)	(193,821)
Definite lived intangible assets, Net	$ 171,670	$ 204,896
Trademarks, URLs and Other
Business Acquisition [Line Items]
Definite lived intangible assets, Expected Life	3 years	3 years
Definite lived intangible assets, Average Remaining Life	1 year 3 months	1 year 6 months
Definite lived intangible assets, Gross	$ 27,759	$ 27,759
Definite lived intangible, Accumulated Amortization	(16,995)	(14,912)
Definite lived intangible assets, Net	$ 10,764	$ 12,847

Acquisitions - Schedule of Amor

Acquisitions - Schedule of Amortization Expense of Definite Lived Intangible Assets (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Business Combinations [Abstract]
2,018	$ 295,981
2,019	213,764
Definite lived intangible assets, Net	$ 509,745	$ 608,405

Accounts Receivable - Schedule

Accounts Receivable - Schedule of Accounts Receivable, Net (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accounts Receivable Net Current [Abstract]
Accounts receivable	$ 5,306,779	$ 5,194,831
Less: allowance for doubtful accounts	(93,228)	(2,101)
Accounts receivable, total	$ 5,213,551	$ 5,192,730

Inventories - Summary of Invent

Inventories - Summary of Inventories, Net (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,790,781	$ 2,079,589
Sub-assemblies	1,891,462	2,417,095
Inventory, gross	3,682,243	4,496,684
Less: reserves for obsolete and slow-moving inventories	(342,482)	(800,354)
Inventory, net	$ 3,339,761	$ 3,696,330

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 3,667,882	$ 3,270,177
Less: accumulated depreciation and amortization	(1,843,460)	(1,688,363)
Property and equipment, net	1,824,422	1,581,814
Computers and Computer Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,162,948	936,317
Furniture and Office Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	171,586	161,434
Manufacturing Equipment and Engineering Tools
Property Plant And Equipment [Line Items]
Property and equipment, gross	2,190,366	2,041,238
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 142,982	$ 131,188

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 253,758	$ 179,044
Property and Equipment
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 155,097	$ 79,835

Accrued Expenses and Other Li39

Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accrued Liabilities And Other Liabilities [Abstract]
Accrued compensation and related liabilities	$ 479,055	$ 457,152
Deferred revenue and customer deposits	871,803	1,033,845
Warranty reserve	58,100	56,774
Other accrued expenses	51,202	386,206
Accrued expenses and other liabilities	$ 1,460,160	$ 1,933,977

Debt - Additional Information (

Debt - Additional Information (Details)	1 Months Ended		3 Months Ended		12 Months Ended
	Jul. 31, 2016USD ($)Stockholder$ / sharesshares	May 31, 2015USD ($)	Mar. 31, 2018USD ($)$ / shares	Mar. 31, 2017USD ($)	Dec. 31, 2017	Feb. 05, 2018USD ($)	Feb. 01, 2018$ / sharesshares	Oct. 05, 2017USD ($)	Oct. 04, 2017USD ($)
Debt Instrument [Line Items]
Warrants exercise price | $ / shares							$ 6
Warrants to purchase common stock | shares							380,000
Amortization of debt discount			$ 24,830	$ 5,959
Warrants
Debt Instrument [Line Items]
Warrants exercise price | $ / shares			$ 5
Fair value assumptions, contractual term			5 years
Fair value assumptions, volatility rate			42.70%
Fair value assumptions, dividend rate			0.00%
Fair value assumptions, risk-free interest rate			2.72%
May 2015 Note
Debt Instrument [Line Items]
Debt instrument, face amount		$ 1,250,000
Debt instrument, accrued interest rate		3.60%
Debt instrument, monthly principal and interest payments		$ 36,750
Refinanced Note
Debt Instrument [Line Items]
Debt instrument, face amount	$ 1,600,000
Debt instrument, accrued interest rate	3.80%
Debt instrument, monthly principal and interest payments	$ 47,219
Debt instrument, maturity date	Jul. 31, 2019
July 2016 Note
Debt Instrument [Line Items]
Debt instrument, face amount	$ 250,000
Debt instrument, accrued interest rate	11.00%
Debt instrument, monthly principal and interest payments	$ 9,570
Debt instrument, maturity date	Jan. 15, 2019
Warrants to purchase common stock percentage equal to original principal	20.00%
Warrants exercise price | $ / shares	$ 1.78
Warrants to purchase common stock | shares	28,090
Estimated fair value of warrants	$ 24,830
July 2016 Note | Warrants
Debt Instrument [Line Items]
Fair value assumptions, exercise price | $ / shares	$ 1.78
Fair value assumptions, contractual term	7 years
Fair value assumptions, volatility rate	54.00%
Fair value assumptions, dividend rate	0.00%
Fair value assumptions, risk-free interest rate	1.42%
July 2016 Related Party Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 350,000
Debt instrument, accrued interest rate	11.00%
Debt instrument, monthly principal and interest payments	$ 13,397
Debt instrument, maturity date	Jan. 15, 2019
Warrants to purchase common stock percentage equal to original principal	20.00%
Warrants exercise price | $ / shares	$ 1.78
Warrants to purchase common stock | shares	39,326
Estimated fair value of warrants	$ 34,763
Number of stockholders | Stockholder	2
July 2016 Related Party Notes | Warrants
Debt Instrument [Line Items]
Fair value assumptions, exercise price | $ / shares	$ 1.78
Fair value assumptions, contractual term	7 years
Fair value assumptions, volatility rate	54.00%
Fair value assumptions, dividend rate	0.00%
Fair value assumptions, risk-free interest rate	1.42%
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, expiration date			Aug. 31, 2018
Line of credit facility, maximum borrowing capacity								$ 3,500,000	$ 3,000,000
Line of credit facility, outstanding						$ 0
Revolving Credit Facility | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		2.50%			3.93%

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($)

Feb. 09, 2018

Feb. 05, 2018

Dec. 13, 2017

Oct. 10, 2017

Dec. 31, 2015

Dec. 31, 2011

Nov. 30, 2008

Mar. 31, 2018

Mar. 31, 2017

Feb. 01, 2018

Dec. 31, 2017

Dec. 18, 2017

Class Of Stock [Line Items]

Preferred stock, shares authorized

5,000,000

10,000,000

Common stock, shares authorized

11,000,000

50,000,000

50,000,000

Common stock, par value

$ 0.0001

$ 0.0001

Preferred stock, conversion basis

one-for-one basis

Common stock voting rights

one vote for each share

Common stock, shares issued

12,773,289

5,514,917

Gross proceeds from issuance of common stock

$ 19,500,000

Warrants to purchase common stock

380,000

Warrants exercise price

$ 6

Relative fair value of warrants issued in connection with initial public offering

669,408

Exercise of stock options

$ 54,575

Preferred stock, shares outstanding

0

Description of preferred shares convertible terms

Series A Preferred Stock, Series B Preferred Stock, and Series C Preferred Stock (“Preferred Shares”) are convertible at any time at the option of the holder into one share of common stock.

Preferred stock, no par value

Weighted-average grant date fair value of common stock options issued

0

0

Unvested common stock options, net of estimated forfeitures

$ 215,760

Unearned stock-based compensation expected to be recognized

1 year

Maximum

Class Of Stock [Line Items]

Ownership interest percentage

10.00%

Options expiration period date of grant

10 years

Minimum

Class Of Stock [Line Items]

Proceeds from convertible preferred stock to common stock

$ 10,000,000

Preferred stock, par value

$ 5

Fair market value of common stock on date of grant

110.00%

Options expiration period date of grant

5 years

Stock Options

Class Of Stock [Line Items]

Number of common stock issued

321,366

Exercise of stock options

$ 54,575

Common Stock

Class Of Stock [Line Items]

Number of common stock issued

321,366

Exercise of stock options

$ 32

Common Stock | Maximum | 2017 Equity Incentive Plan

Class Of Stock [Line Items]

Number of shares issued

1,500,000

Common Stock | 2000 Plan

Class Of Stock [Line Items]

Number of shares granted

3,000,000

Common Stock | 2011 Plan

Class Of Stock [Line Items]

Shares available for grant

240,000

Common Stock | 2011 Plan | Maximum

Class Of Stock [Line Items]

Number of shares granted

1,500,000

Common Stock | 2015 Plan

Class Of Stock [Line Items]

Shares available for grant

790,000

Common Stock | 2015 Plan | Maximum

Class Of Stock [Line Items]

Number of shares granted

1,500,000

Common Stock | Board of Directors | 2011 Plan

Class Of Stock [Line Items]

Shares available for grant

0

Stock options, termination date

Oct. 10, 2017

Common Stock | Board of Directors | 2015 Plan

Class Of Stock [Line Items]

Shares available for grant

0

Stock options, termination date

Oct. 10, 2017

Warrants

Class Of Stock [Line Items]

Warrants exercise price

$ 5

Relative fair value of warrants issued in connection with initial public offering

$ 699,408

Fair value assumptions, contractual term

5 years

Fair value assumptions, volatility rate

42.70%

Fair value assumptions, dividend rate

0.00%

Fair value assumptions, risk-free interest rate

2.72%

Number of Shares, Warrants granted

380,000

Initial Public Offering

Class Of Stock [Line Items]

Number of Shares, Warrants granted

380,000

Initial Public Offering | Common Stock

Class Of Stock [Line Items]

Common stock, par value

$ 0.0001

Common stock, shares issued

3,800,000

Common stock price

$ 5

Gross proceeds from issuance of common stock

$ 19,000,000

Net proceeds from issuance of common stock

17,485,000

Underwriting discounts and commissions

1,330,000

Underwriter offering-related transaction costs

185,000

Accounting, legal and other fees and costs

1,148,352

Warrant expense

$ 699,408

Over-allotment Option | Common Stock

Class Of Stock [Line Items]

Common stock, shares issued

200,000

Common stock price

$ 5

Gross proceeds from issuance of common stock

$ 500,000

Net proceeds from issuance of common stock

465,000

Underwriting discounts and commissions

$ 35,000

Over-allotment Option | Common Stock | Under Writers

Class Of Stock [Line Items]

Over allotment option to purchase additional shares

100,000

Over-allotment Option | Common Stock | CEO’s Family Trust

Class Of Stock [Line Items]

Over allotment option to purchase additional shares

100,000

Series A Preferred Stock

Class Of Stock [Line Items]

Preferred stock, shares authorized

500,000

500,000

Common stock, par value

0.0001

Preferred stock, shares outstanding

0

500,000

Preferred stock, liquidation preference per share

$ 0.25

$ 125,000

Preferred stock, no par value

Series B Preferred Stock

Class Of Stock [Line Items]

Preferred stock, shares authorized

1,500,000

1,500,000

Common stock, par value

0.0001

Preferred stock, shares outstanding

0

1,450,000

Preferred stock, liquidation preference per share

$ 0.50

$ 725,000

Preferred stock, no par value

$ 0

Series C Preferred Stock

Class Of Stock [Line Items]

Preferred stock, shares authorized

2,000,000

2,000,000

Common stock, par value

$ 0.0001

Preferred stock, shares outstanding

0

1,087,006

Preferred stock, liquidation preference per share

$ 1.50

$ 1,630,508

Preferred stock, no par value

$ 0

Series A, Series B, and Series C, Preferred Stock

Class Of Stock [Line Items]

Stock split, conversion ratio

1

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Stock Option Activity (Details) - Stock Options - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Outstanding beginning balance	2,379,444
Number of Shares, Forfeited / Cancelled	(24,582)
Number of Shares, Exercised	(416,416)
Number of Shares, Outstanding ending balance	1,938,446	2,379,444
Number of Shares, Exercisable ending balance	1,529,689
Number of Shares, Vested and expected to vest ending balance	1,928,671
Weighted Average Exercise Price, Outstanding beginning balance	$ 1.02	$ 1
Weighted Average Exercise Price, Forfeited / Cancelled	1.43
Weighted Average Exercise Price, Exercised	0.86
Weighted Average Exercise Price, Exercisable ending balance	0.81
Weighted Average Exercise Price, Vested and expected to vest ending balance	$ 1.02
Weighted Average Remaining Contractual Life (in years), Outstanding balance	5 years 8 months 8 days	5 years 3 months 18 days
Weighted Average Remaining Contractual Life (in years), Exercisable balance	4 years 9 months 25 days
Weighted Average Remaining Contractual Life (in years), Vested and expected to vest balance	5 years 8 months 1 day
Aggregate Intrinsic Value, Outstanding balance	$ 6,550,748	$ 15,472,456
Aggregate Intrinsic Value, Exercisable balance	5,489,827
Aggregate Intrinsic Value, Vested and expected to vest balance	$ 6,525,894

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Assumption to Calculate Weighted Average Grant Date Fair Value of Options Grant (Details) - Common Stock - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Class Of Stock [Line Items]
Grant date fair value of options vested	$ 1,240,805	$ 1,428,468
Intrinsic value of options exercised	$ 1,472,506	$ 30,000

Stockholders' Equity - Summar44

Stockholders' Equity - Summary of Stock-Based Compensation Expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 35,318	$ 24,626
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	3,190
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	21,820	18,500
Marketing and Selling
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	2,949	4,900
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 7,359	$ 1,226

Stockholders' Equity - Schedu45

Stockholders' Equity - Schedule of Warrant Activity (Details) - Warrants	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Class Of Stock [Line Items]
Number of Shares, Beginning Warrants outstanding | shares	198,996
Number of Shares, Warrants granted | shares	380,000
Number of Shares, Ending Warrants outstanding | shares	578,996
Weighted Average Exercise Price, Beginning Warrant outstanding | $ / shares	$ 1.11
Weighted Average Exercise Price, Warrant granted | $ / shares	6
Weighted Average Exercise Price, Ending Warrant outstanding | $ / shares	$ 4.32

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Leased Assets [Line Items]
Operating lease, rent expense	$ 143,928	$ 103,858
Offices, Manufacturing and Warehouse Facilities
Operating Leased Assets [Line Items]
Operating lease, expiration date	Aug. 31, 2018

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($)	Aug. 01, 2016	Mar. 31, 2018	Mar. 31, 2017
Related Party Transaction [Line Items]
Advertising costs		$ 17,626	$ 32,088
Interest expense on all the related party		16,599	11,312
Related Law Firm | General and Administrative Expenses
Related Party Transaction [Line Items]
Legal fees		$ 9,998	9,000
Chief Executive Officer Owned Company
Related Party Transaction [Line Items]
Management service, description		The agreement calls for payments of $180,000 per year for the first two years paid in monthly installments. In year three, the amount is reduced to $37,500 for the year paid in monthly installments. Additionally, the Company granted 30,000 options in conjunction with execution of this agreement.
Payments of management services for first two years	$ 180,000
Annual management services fees reduced to amount in year three	$ 37,500
Options granted	30,000
Payments of management services		$ 45,000	45,000
Board
Related Party Transaction [Line Items]
Board fees including stock-based Compensation		36,450	28,795
Board | Selling and Marketing Expense
Related Party Transaction [Line Items]
Advertising costs		$ 4,000	$ 8,650

Unaudited Net (Loss) Income Per

Unaudited Net (Loss) Income Per Share - Summary of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net (loss) income attributable to common stockholders	$ (794,419)	$ 79,147
Denominator:
Weighted average common shares outstanding - basic	10,140,459	5,379,141
Effect of dilutive securities		4,378,088
Weighted average common shares outstanding - diluted	10,140,459	9,757,229
Net (loss) income per common share attributable to common stockholders:
Basic	$ (0.08)	$ 0.01
Diluted	$ (0.08)	$ 0.01

Segment and Geographic Inform49

Segment and Geographic Information - Additional Information (Details) - Segment	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Number of Reportable Segments	1
Customer Concentration Risk | Sales Revenue, Net
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Concentration risk, percentage	54.00%	46.00%
United Kingdom | Customer Concentration Risk | Sales Revenue, Net
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Concentration risk, percentage	46.00%	52.00%

Subsequent Events - Addtional I

Subsequent Events - Addtional Informartion (Details) - SkyScale, LLC - USD ($)	Apr. 30, 2018	Apr. 30, 2017
Subsequent Event [Line Items]
Ownership percentage in joint venture		50.00%
Subsequent Event
Subsequent Event [Line Items]
Ownership percentage in joint venture	50.00%
Subsequent Event | Board of Directors
Subsequent Event [Line Items]
Inter company loan approved	$ 300,000