Barfresh Food (BRFH) 10-K 1 Apr 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 25, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	BARFRESH FOOD GROUP INC.
Entity Central Index Key	0001487197
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 36,367,146
Entity Common Stock, Shares Outstanding		130,085,820
Trading Symbol	BRFH
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash	$ 1,041,569	$ 1,304,916
Accounts receivable, net	357,304	301,012
Inventory, net	1,226,463	1,415,495
Prepaid expenses and other current assets	98,457	24,496
Total current assets	2,723,793	3,045,919
Property, plant and equipment, net of depreciation	2,500,254	1,760,890
Intangible assets, net of amortization	537,789	586,943
Deposits		39,369
Total Assets	5,761,836	5,433,121
Current liabilities:
Accounts payable	1,101,882	421,176
Accrued expenses	175,259	439,032
Accrued payroll	638,706	161,186
Accrued vacation	155,586	249,311
Deferred rent		495
Total current liabilities	2,071,433	1,271,200
Long term liabilities:
Accrued interest	190,475
Convertible note - related party, net of discount	841,836
Convertible note, net of discount	1,367,487
Derivative liabilities	1,325,653
Total liabilities	5,796,884	1,271,200
Commitments and contingencies (Note 6,7,8 and 13)
Stockholders' equity (deficit):
Preferred stock, $0.000001 par value, 5,000,000 shares authorized, none issued or outstanding
Common stock, $0.000001 par value; 300,000,000 shares authorized; 122,770,960 and 118,690,527 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively	123	119
Additional paid in capital	41,118,649	37,992,799
Accumulated deficit	(41,153,820)	(33,830,997)
Total stockholders' equity (deficit)	(35,048)	4,161,921
Total Liabilities and Stockholders' Equity (Deficit)	$ 5,761,836	$ 5,433,121

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	122,770,960	118,690,527
Common stock, shares outstanding	122,770,960	118,690,527

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Revenue	$ 4,235,159	$ 1,997,012
Cost of revenue	2,033,396	1,085,575
Depreciation of manufacturing equipment	57,099	21,766
Gross profit	2,144,664	889,671
Operating expenses:
General and administrative	7,813,425	9,492,094
Depreciation and amortization	511,319	309,117
Total operating expenses	8,324,744	9,801,211
Operating loss	(6,180,080)	(8,911,540)
Other expenses
Loss from derivative liability	87,630
Warrant modification	290,300
Interest	764,813
Total other expense	1,142,743
Net (loss)	$ (7,322,823)	$ (8,911,540)
Per share information - basic and fully diluted:
Weighted average shares outstanding	119,599,191	117,748,411
Net (loss) per share	$ (0.06)	$ (0.08)

Statement of Stockholders' Equi

Statement of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated (Deficit) [Member]	Total
Balance at Dec. 31, 2016	$ 117	$ 35,829,627	$ (24,919,457)	$ 10,910,287
Balance, shares at Dec. 31, 2016	117,103,276
Exercise of warrants		35,400		35,400
Exercise of warrants, shares	232,005
Exercise of options
Exercise of options, shares	276,171
Issuance of stock for services	$ 1	112,250		$ 112,251
Issuance of stock for services, shares	178,733			178,733
Equity based compensation	$ 1	2,015,522		$ 2,015,523
Equity based compensation, shares	900,342
Warrant modification
Net (loss) for the year			(8,911,540)	(8,911,540)
Balance at Dec. 31, 2017	$ 119	37,992,799	(33,830,997)	4,161,921
Balance, shares at Dec. 31, 2017	118,690,527
Exercise of warrants	$ 2	924,998		925,000
Exercise of warrants, shares	2,017,821
Issuance of stock for services	$ 1	190,166		$ 190,167
Issuance of stock for services, shares	1,150,395			180,265
Equity based compensation		598,768		$ 598,768
Equity based compensation, shares
Cashless exercise of options
Cashless exercise of options, shares	107,821
Conversion of notes payable	$ 1	580,853		580,854
Conversion of notes payable, shares	804,396
Discount on convertible notes (warrants)		540,765		540,765
Warrant modification		290,300		290,300
Net (loss) for the year			(7,322,823)	(7,322,823)
Balance at Dec. 31, 2018	$ 123	$ 41,118,649	$ (41,153,820)	$ (35,048)
Balance, shares at Dec. 31, 2018	122,770,960

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Statement of Cash Flows [Abstract]
Net income	$ (7,322,823)	$ (8,911,540)
Adjustments to reconcile net income to net cash from operating activities
Depreciation	504,808	268,784
Amortization	63,610	62,099
Change in allowance for doubtful accounts	61,788
Change in inventory reserve	31,237
Interest expense, amortization of debt discount	519,707
Warrant modification expense	290,300
Stock-Based compensation	598,768	1,550,718
Loss on derivative	87,630
Gain on sale of assets	(13,118)
Stock and options issued for services	190,167	112,250
Changes in assets and liabilities
Receivables - trade	(148,055)	(169,924)
Inventories	213,346	(1,097,547)
Prepaid expenses & other assets	(4,617)	1,368
Deposits		13,833
Accounts payable	458,507	267,420
Accrued expenses	120,022	567,960
Accrued interest	220,934
Deferred rent	(495)	330
Net Cash (used for) Operating Activities	(4,128,284)	(7,334,249)
Investing Activities
Purchase of property and equipment	(1,106,574)	(535,196)
Proceeds from sale of equipment	37,967
Purchase of intangibles	(14,456)	(29,179)
Net Cash (used for) Investing Activities	(1,083,063)	(564,375)
Financing Activities
Cash received for warrant Exercises	925,000	35,400
Cash paid for debt offering costs	(45,000)
Issuance of convertible notes	4,318,000
Repayment of long term debt	(250,000)	(12,807)
Net Cash from Financing Activities	4,948,000	22,593
Net Change in Cash and Cash Equivalents	(263,347)	(7,876,031)
Cash and Cash Equivalents, Beginning of Year	1,304,916	9,180,947
Cash and Cash Equivalents, End of Year	1,041,569	1,304,916
Interest Paid
Non Cash Financing and Investing Activities
Settlement of liability with equity awards		464,806
Total property and equipment included in accounts payable	216,768
Discount on convertible notes	1,874,684
Convertible notes principal interest and derivative liability settled in stock	$ 540,854

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Barfresh Food Group Inc., (“we,” “us,” “our,” and the “Company”) was incorporated on February 25, 2010 in the State of Delaware. We are engaged in the manufacturing and distribution of ready to blend beverages, particularly, smoothies, shakes and frappes. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Basis of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries, Barfresh Inc. and Barfresh Corporation Inc. All inter-company balances and transactions among the companies have been eliminated upon consolidation. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates. Concentration of Credit Risk The amount of cash on deposit with financial institutions exceeds the $250,000 federally insured limit at December 31, 2018 and 2017. However, we believe that cash on deposit that exceeds $250,000 in the financial institutions is financially sound and the risk of loss is minimal. Fair Value Measurement Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of cash, accounts receivable, accounts payable, accrued expenses, derivative liabilities, and convertible notes. The carrying value of our financial instruments approximates their fair value, except for the derivative liability in which carrying value is fair value. Accounts Receivable Accounts receivable are typically unsecured. Our credit policy calls for payment generally within 30 days. The credit worthiness of a customer is evaluated prior to a sale. As of December 31, 2018 and 2017, the company’s allowance for doubtful accounts was $61,788 and $0, respectively. There was bad debt expense for the year ended December 31, 2018 of $61,788 and no bad debt expense for the year ended December 31, 2017. The allowance was applied to certain receivable accounts which are over 95 days. Inventory Inventory consists of finished goods and is carried at the lower of cost or realizable value on a first in first out basis. The company monitors the remaining useful life of its inventory and establishes a reserve of obsolescence where appropriate. As of December 31, 2018 and 2017, the Company’s inventory reserve was $31,237 and $0, respectively. Intangible Assets Intangible assets are comprised of patents, net of amortization and trademarks. The patent costs are being amortized over the life of the patent, which is twenty years from the date of filing the patent application. In accordance with ASC Topic 350 Intangibles - Goodwill and Other In accordance with ASC 350 legal costs related to trademarks have been capitalized. We have determined that trademarks have an indeterminable life and therefore are not being amortized. Long-Lived Assets and Other Acquired Intangible Assets We evaluate the recoverability of property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any significant impairment charges during the years presented. Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term that includes any expected renewal periods that are deemed to be reasonably assured. The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Manufacturing equipment and customer equipment: 3 years to 7 years Leasehold improvements: 2 years Vehicles 5 years Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains ownership of promised goods. The Company adopted this standard at the beginning of fiscal year 2018, with no significant impact to its financial position or results of operations, using the modified retrospective method. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods. The Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable. For the Company, the contract is the approved sales order, which may also be supplemented by other agreements that formalize various terms and conditions with customers. 2) Identify the performance obligation in the contract Performance obligations promised in a contract are identified based on the goods or that will be transferred to the customer. For the Company, this consists of the delivery of frozen beverages, which provide immediate benefit to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods, and is generally stated on the approved sales order. Variable consideration, which typically includes volume-based rebates or discounts, are estimated utilizing the most likely amount method. 4) Allocate the transaction price to performance obligations in the contract 5) Recognize Revenue when or as the Company satisfies a performance obligation The Company recognizes revenue from the sale of frozen beverages when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. Customer sales incentives such as volume-based rebates or discounts are treated as a reduction of sales at the time the sale is recognized. Shipping and handling costs are treated as fulfillment costs and presented in distribution, selling and administrative costs. The company evaluated the requirement to disaggregate revenue, and concluded that substantially all of its revenue comes from a single product, frozen beverages. Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $674,224 and $574,989, in research and development expenses for the years ended December 31, 2018 and 2017, respectively. Shipping and Storage Costs Shipping and handling costs are included in general and administrative expenses. For the years ended December 31, 2018 and 2017, shipping and handling costs totaled $864,871 and $619,871, respectively. Rent Expense We recognize rent expense on a straight-line basis over the reasonably assured lease term as defined in ASC Topic 840, Leases Income Taxes The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. For the years ended December 31, 2018 and 2017 we did not have any interest and penalties or any significant unrecognized uncertain tax positions. Derivative Liability The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging.” The result of this accounting treatment is that the fair value of any derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as gain/loss from derivative liability. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. We analyzed the derivative financial instruments in accordance with ASC 815. The objective is to provide guidance for determining whether an equity-linked financial instrument is indexed to an entity’s own stock. This determination is needed for a scope exception which would enable a derivative instrument to be accounted for under the accrual method. The classification of a non-derivative instrument that falls within the scope of ASC 815-40-05 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non-derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability. There is a two-step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First, the instrument’s contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument’s settlement provisions. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as the amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale. Earnings per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share Stock Based Compensation We calculate stock compensation in accordance with ASC Topic 718, Compensation-Stock Based Compensation Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated financial statements to maintain consistency between periods presented. The reclassifications had no impact on net income or stockholder’s equity. Recent pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial position. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU leaves the accounting for the organization that own the assets leased to the lessee (“lessor”) largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, “Revenue from Contracts with Customers”. The Company has evaluated the effect of the standard on our financial statements. Based on our evaluation, we do not expect there to be material changes to both our current and long-term lease liabilities and our fixed assets of our limited number of operating leases that will be converted to financing leases under the new guidance. The Company does not plan to adopt the standard until the interim period ended March 31, 2019.

Property Plant and Equipment

Property Plant and Equipment	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Property Plant and Equipment	Note 2. Property Plant and Equipment Major classes of property and equipment at December 31, 2018 and 2017 consist of the following: 2018 2017 Furniture and fixtures $ 1,524 $ 1,524 Manufacturing Equipment and customer equipment 3,118,391 1,952,538 Leasehold Improvements 4,886 4,886 Vehicles 29,696 29,696 3,154,497 1,988,644 Less: accumulated depreciation (1,190,846 ) (665,657 ) 1,963,651 1,322,987 Equipment not yet placed in service 536,605 437,903 Property and equipment, net of depreciation $ 2,500,254 $ 1,760,890 We recorded depreciation expense related to these assets of $504,808 and $268,784 for the years ended December 31, 2018 and 2017, respectively.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 3. Intangible Assets As of December 31, 2018, intangible assets consist of patent costs of $764,891, trademarks of $103,309 and accumulated amortization of $330,411. As of December 31, 2017, intangible assets consist of patent costs of $764,891, trademarks of $88,853 and accumulated amortization of $266,801. The amounts carried on the balance sheet represent cost to acquire, legal fees and similar costs relating to the patents incurred by the Company. Amortization is calculated through the expiration date of the patent, which is December, 2025. The amount charged to expenses for amortization of the patent costs was $63,610 and $62,099 for the years ended December 31, 2018 and 2017, respectively. Estimated future amortization expense related to patents as of December 31, 2018, is as follows: Total Amortization Years ending December 31, 2019 $ 63,610 2020 63,610 2021 63,610 2022 63,610 2023 63,610 Later years 116,430 $ 434,480

Related Parties

Related Parties	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Parties	Note 4. Related Parties As disclosed below in Note 6, members of management and directors invested in company’s convertible notes; and in Note 9, members of management and directors have received shares of stock and options in exchange for services.

Short-Term Notes Payable

Short-Term Notes Payable	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Short-Term Notes Payable	Note 5. Short-Term Notes Payable In March 2018, we closed an offering of $250,000 in a short-term note payable. The short-term note bore 12% interest per annum with an original maturity date in September 2018 which was extended to December 31, 2018. During the three months ended September 30, 2018, the Company paid down $50,000 of the short term note, and the balance of $200,000 of the note payable was paid in full during December 2018.

Convertible Notes (Related and

Convertible Notes (Related and Unrelated Party)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Convertible Notes (Related and Unrelated Party)	Note 6. Convertible Notes (Related and Unrelated Party) In March 2018, we closed an offering of $2,527,500 in convertible notes, Series CN Note 1 of 2, of which, management, directors and significant shareholders have invested $840,000. The convertible notes bear 10% interest per annum and are due and payable on March 14, 2020. The notes are convertible at any time prior to the due date into our common stock at conversion price of $0.88 per share or 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders’ election; but in no events lower than $0.60 per share. In addition, the interest is convertible at any time prior to the due dates into our common stock at conversion price of 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders’ election; but in no event lower than $0.60 per share. There were 1,331,583 warrants issued, in conjunction with the convertible note offering. The fair value of the warrants, $0.17 per share ($220,548 in the aggregate), was calculated using the Black-Scholes option pricing model using the following assumptions: Expected life (in years) 3 Volatility (based on a comparable company) 54.82 % Risk Free interest rate 2.41 % Dividend yield (on common stock) - The value of $220,548 was recorded as a debt discount related to the issuance of the warrants. In April 2018, we offered investors in our March 2018 Convertible Note (“Series CN Notes”) the opportunity to accelerate the issuance of certain warrants associated with the CN Notes. Pursuant to the acceleration offer, Series CN Notes investors who invested an additional 10% to 20% of the Series CN Note amount, immediately received an additional 25% warrant coverage on their initial CN Note investment, which would otherwise have been issued after one year. During April 2018, we closed the CN Note acceleration offer in the amount of $177,300 in convertible notes, of which, management, directors and significant shareholders have invested $30,000. The CN Note acceleration offer convertible notes bear 10% interest per annum and are due and payable on March 14, 2020. The notes are convertible at any time prior to the due date into our common stock at conversion price of $0.88 per share or 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders’ election; but in no events lower than $0.60 per share. In addition, the interest is convertible at any time prior to the due dates into our common stock at conversion price of 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders’ election; but in no events lower than $0.60 per share. There were 937,373 warrants issued in conjunction with the Series CN Note acceleration offer convertible note offering. The fair value of the warrants, $0.25 per share ($235,519 in the aggregate), was calculated using the Black-Scholes option pricing model using the following assumptions: Expected life (in years) 3 Volatility (based on a comparable company) 55.49 % Risk Free interest rate 2.45 % Dividend yield (on common stock) - The value of $105,199 was recorded as a debt discount related to the issuance of the warrants as using the fair value would cause the debt discount to exceed the gross proceeds received. In November and December 2018, three investors elected to convert their convertible note issued on March 14, 2018 into stock. The total debt converted was $453,000 and $30,459 accrued interest into 804,396 shares of stock. The convertible notes consist of the following components as of the year-end: December 31, 2018 Convertible notes $ 2,704,800 Less: Debt discount (warrant value) (325,747 ) Less: Debt discount (derivative value)(Note 7) (638,988 ) Less: Debt discount (issuance costs paid) (27,000 ) Less: Note conversion (453,000 ) Add: Debt discount amortization 481,042 $ 1,741,107 In December 2018, we closed an offering of $1,363,200 in convertible notes, Series CN 2 of 2, of which, management, directors and significant shareholders have invested $560,000. The convertible notes bear 10% interest per annum and are due and payable on November 30, 2020. The notes are convertible at any time prior to the due date into our common stock at conversion price of $0.88 per share or 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders’ election; but in no events lower than $0.60 per share. In addition, the interest is convertible at any time prior to the due dates into our common stock at conversion price of 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders’ election; but in no event lower than $0.60 per share. There were 678,864 warrants issued, in conjunction with the convertible note offering. The fair value of the warrants, $0.31 per share ($212,763 in the aggregate), was calculated using the Black-Scholes option pricing model using the following assumptions: Expected life (in years) 3 Volatility (based on a comparable company) 59.00 % Risk Free interest rate 2.83 % Dividend yield (on common stock) - The value of $212,763 was recorded as a debt discount related to the issuance of the warrants. The convertible notes consist of the following components as of the year-end: December 31, 2018 Convertible notes $ 1,363,200 Less: Debt discount (warrant value) (212,763 ) Less: Debt discount (derivative value)(Note 7) (697,186 ) Less: Debt discount (issuance costs paid) (23,700 ) Add: Debt discount amortization 38,665 $ 468,216 As of December 31, 2018, the outstanding balances due of the Series CN Notes, net of all related debt discount, total $2,209,323. The related party convertible notes (net) and unrelated party convertible notes (net) represent $841,836 and $1,367,487, respectively as of December 31, 2018. Future maturity of convertible notes at face value before effect of all discount, are as follow: Total Convertible Notes Years ending December 31, 2019 $ - 2020 3,615,000 2021 - 2022 - 2023 - $ 3,615,000

Derivative Liabilities

Derivative Liabilities	12 Months Ended
	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liabilities	Note 7. Derivative Liabilities As discussed in Note 6, Convertible Notes, the Company issued Series CN Note acceleration offer convertible notes payable that provide variable conversion provisions. The conversion terms of the convertible notes are variable based on certain factors, such as the future price of the Company’s common stock. The number of shares of common stock to be issued is based on the future price of the Company’s common stock, therefore the number of shares of common stock issuable upon conversion of the promissory note is indeterminate. The fair values of the Company’s derivative liabilities are estimated at the issuance date and are revalued at each subsequent reporting date. The Company recognized a derivative liability and debt discount of $569,588 at March 14, 2018 related to the Series CN Convertible notes 1 of 2; $69,400 at April 11, 2018 related to the Series CN Notes Warrant Acceleration; and $697,186 at November 30, 2018 related to the Series CN Convertible note 2 of 2. The derivative liability was revalued at December 31, 2018 with a value of $1,325,653. The Company recorded a net loss of $87,630 for the year ended December 31, 2018 related to the derivative liability. The net loss consists of a $110,829 gain for a portion of the derivative liability being settled upon a note holders decision to convert their outstanding principal under the terms of the convertible note agreement to equity and a loss of $198,459 from the change in fair value. The fair value of the derivative liability for CN Convertible Note 1 of 2 and CN Note Warrant Acceleration was calculated using the Black-Scholes model using the following assumptions. 14-Mar-18 11-Apr-18 31-Dec-18 Expected life 2 1.96 1.20 Volatility (based on comparable company) 49.00 % 53.93 % 72.03 % Risk Fee interest rate 2.41 % 2.32 % 2.48 % Dividend yield (on common stock) - - - The fair value of the derivative liability for CN Convertible Note 2 of 2 was calculated using the Black-Scholes model using the following assumptions. 30-Nov-18 31-Dec-18 Expected life 2 1.92 Volatility (based on comparable company) 61.17 % 63.70 % Risk Fee interest rate 2.80 % 2.48 % Dividend yield (on common stock) - - Reconciliation of the derivative liability measured at fair value on a recurring basis with the use of significant unobservable inputs (level 3) from December 31, 2017 to December 31, 2018: December 31, 2017 $ - Initial value - March 14, 2018 569,588 Initial value - April 11, 2018 69,400 Initial value - November 30, 2018 697,186 Fair value of settlement from debt conversion (208,980 ) Loss from change in value 198,459 For the period ended December 31, 2018 $ 1,325,653 The following table presents the Company’s fair value hierarchy for applicable assets and liabilities measured at fair value as of December 31, 2018. Level 1 Level 2 Level 3 Total Derivative Liability $ - - 1,325,653 $ 1,325,653

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 8. Commitments and Contingencies We lease office space under non-cancelable operating leases, which expires on March 31, 2019. The aggregate minimum requirements are as follows: For years ending December 31, 2019 43,462 $ 43,462 We incurred lease expense of $167,530 and $132,620 for the years ended December 31, 2018 and 2017, respectively.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Stockholders' Equity	Note 9. Stockholders’ Equity During the year ended December 31, 2017, we issued 178,733 shares of common stock, valued at $112,250 for services. We also issued 95,995 shares of our common stock, with a value of $73,560, to a member of our Board of Directors in lieu of cash payments for Director fees. In addition, we issued 439,977 options to purchase our common stock to certain member of the Board of Directors in lieu of cash payments for Director fees. The exercise price of the options ranged from $0.77 to $0.79 per share, vest immediately, and are exercisable for periods of 8 years. In addition, we issued 1,485,000 options to purchase our common stock to employees and executives. The exercise price of the options ranged from $0.55 to $0.68 per share, vest after 3 years, and are exercisable for periods of 8 years. The fair value of the options issued ($999,682, in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below. Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 74.09% to 82.65 % Risk Free interest rate 1.24% to 1.73 % Dividend yield (on common stock) - During the year ended December 31, 2018, we issued 180,265 shares of common stock, valued at $90,167 for services. We also issued 183,240 shares of our common stock, with a value of $100,000, to certain members of our Board of Directors in lieu of cash payments for Director fees. Also, we have 786,890 shares issued in connection with formerly issued restricted stock grants that vested during 2018. In addition, we issued 227,111 options to purchase our common stock to certain members of the Board of Directors in lieu of cash payments for Director fees, valued at $100,000. The exercise price of the options ranged from $0.50 to $0.595 per share, vest immediately, and are exercisable for periods of 8 years. In addition, we issued 1,315,000 options to purchase our common stock to employees and executives. The exercise price of the options is $0.52 per share, vest after 3 years, and are exercisable for periods of 8 years. The fair value of the options issued ($543,550, in the aggregate) was calculated using the Black-Sholes option pricing model, based on the criteria shown below. Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 59.82%-70.29 % Risk Free interest rate 2.78%-2.93 % Dividend yield (on common stock) - The shares of our common stock were valued at the trading price on the date of grant, $0.47 and $0.52 per share During the same period, we cancelled 321,183 options to purchase our common stock. Holders of 1,933,333 warrants exercised those warrants for cash proceeds of $925,000 and received 1,933,333 shares of our common stock. Holders of 250,000 N warrants elected to exercise those warrant on a cashless basis and received 84,488 shares of our common stock. Holders of 737,887 options elected to exercise those warrants on a cashless basis and received 107,821 shares of our common stock. The total amount of equity-based compensation included in additional paid in capital for the years ended December 31, 2018 and 2017 was $598,768 and $1,550,718, respectively, The following is a summary of outstanding stock options issued to employees and directors as of December 31, 2018: Number of Options Exercise price per share $ Average remaining term in years Aggregate intrinsic value at date of grant $ Outstanding January 1, 2017 5,862,442 .45 - .87 - Issued 1,924,977 .40 - .79 Cancelled (122,000 ) Exercised (950,000 ) Outstanding December 31, 2017 6,715,419 .40 - .87 Issued 1,542,111 .50 - .60 Cancelled (321,183 ) Exercised (508,333 ) Outstanding December 31, 2018 7,428,014 .40 - .87 5.48 Exercisable , December 31 2018 3,586,396 .40 - .87 4.34 - As of December 31, 2018, the Company has $698,701 of total unrecognized share-based compensation expense related to unvested options, which is expected to be amortized over the remaining weighted average period of 5.48 years.

Outstanding Warrants

Outstanding Warrants	12 Months Ended
	Dec. 31, 2018
Outstanding Warrants
Outstanding Warrants	Note 10. Outstanding Warrants The following is a summary of all outstanding warrants as of December 31, 2018: Number of warrants price per share remaining term in years intrinsic value at date of grant Warrants issued in connection with private placements of common stock 21,029,808 $ 0.53 - $1.00 2.02 $ - Warrants issued in connection with private placement of notes 1,335,000 $ 1.00 2.00 $ - Warrants issued in connection with convertible note 2,940,779 $ 0.70 2.37 $ -

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 11. Income Taxes Income tax provision (benefit) for the years ended December 31, 2018 and 2017 is summarized below: 2018 2017 Current: Federal $ - $ - State - - Total current - - Deferred: Federal (922,100 ) (746,700 ) State (144,700 ) (117,200 ) Total deferred (1,066,800 ) (863,900 ) Change in valuation allowance $ 1,066,800 $ 863,900 The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate before provision for income taxes. The sources and tax effect of the differences are as follows: 2018 2017 Income tax provision at the federal statutory rate 21.0 % 34.0 % State income taxes, net of federal benefit 3.3 % 3.3 % Permanent Difference (2.5 %) (5.46 %) Effect of rate change - % (41.53 %) Effect of change in valuation allowance (21.8 %) 9.69 % - % - % Components of the net deferred income tax assets at December 31, 2018 and 2017 were as follows: 2018 2017 Net operating loss carryover $ 7,969,000 $ 6,902,200 Valuation allowance (7,969,000 ) (6,902,200 ) $ - $ - ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. After consideration of all the evidence, both positive and negative, management has determined that a $7,969,000 and $6,902,200 allowance at December 31, 2018 and 2017, respectively, is necessary to reduce the deferred tax assets to the amount that will more likely than not be realized. The increase in the valuation allowance for the current period is $1,066,800. As of December 31, 2018, we have a net operating loss carry forward of approximately $32,795,300. The loss will be available to offset future taxable income. If not used, this carry forward will expire as follows: 2030 $ 1,000 2031 $ 63,800 2032 $ 345,900 2033 $ 1,840,300 2034 $ 2,324,100 2035 $ 2,987,300 2036 $ 5,061,700 2037 $ 8,464,700 2038 $ 7,315,400 2039 $ 4,391,100 As of December 31, 2018, we did not have any significant unrecognized uncertain tax positions. The 2018 net operating loss carry forward of $4,391,100 does not expire under the Tax Cut and Job Act of 2017.

Business Segments and Customer

Business Segments and Customer Concentrations	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Business Segments and Customer Concentrations	Note 12. Business Segments and Customer Concentrations. During the years ended December 31, 2018 and 2017, we operated in one segment. The following is a breakdown of customers representing more than 10% of sales for the year ended December 31, 2017: Revenue from customer Percentage of total revenue Customer A $ 1,243,341 62.3 % The following is a breakdown of customers representing more than 10% of sales for the year ended December 31, 2018: Revenue from customer Percentage of total revenue Customer A $ 1,465,189 32.84 % Customer B 522,512 11.71 %

Liquidity

Liquidity	12 Months Ended
	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquidity	Note 13. Liquidity We have a history of operating losses and negative cash flow. As our operations grow, we expect to experience significant increases in our working capital requirements. These conditions raise substantial doubt over the Company’s ability to meet all of its obligations over the twelve months following the filing of this Form 10-K. Management has evaluated these conditions, and concluded that current plans will alleviate this concern. As of December 31, 2018, we had $1,041,569 of cash on the balance sheet. We have continued to significantly reduce core operating expenses, reducing total General and Administrative Expense in 2018 by $1.7 million, or 18%, as compared with 2017. In addition, in the first quarter of 2019, the Company completed $4.3 million of funding efforts. These efforts included a Private Placement Offering for common shares priced at .60 cents per share, resulting in the receipt of capital investment in the amount of $2.4 million and the issuance of 3,833,333 shares. In addition, the Company offered to reduce the exercise price on its I Warrants from $1 to .60 cents, for a limited time. During the time this offer was open, I Warrant holders converted 2,841,454 warrants at .60 cents, resulting in the receipt of capital investment in the amount of $1.7 million. In addition, during the first quarter of 2019, one investor exercised G series warrants, resulting in the receipt of capital investment in the amount of $180,000. In addition, during the first quarter of 2019, the Company settled certain Executive Deferred Compensation payments with a combination of cash and warrants. The total amount of Deferred Executive compensation settled is $730,869. One-third of that total or $243,623, was paid in cash. The remaining balance of $487,246 was settled by granting the Executives warrants exercisable for five years to purchase the Company’s stock at an exercise price of $0.70 per share, the closing price of our common stock on March 19, 2019, resulting in additional cash savings to the Company. Management has concluded that these actions have mitigated the substantial doubt of our ability to continue as a going concern. However, the Company cannot predict, with certainty, the outcome of its action to generate liquidity, including the availability of additional financing, or whether such actions would generate the expect liquidity as planned.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 14. Subsequent Events During the first quarter of 2019, the Company completed additional funding efforts, including a Private Placement Offering for common shares priced at $0.60 per share, resulting in the receipt of proceeds in the amount of $2.4 million and the issuance of 3,833,333 shares. In addition, during the first quarter of 2019, the Company offered to reduce the exercise price on its I Warrants from $1 to $0.60, for a limited time. During the time this offer was open, I Warrant holders converted 2,841,454 warrants at $0.60, resulting in the receipt of proceeds in the amount of $1.7 million. In addition, during the first quarter of 2019, one investor exercised G series warrants, resulting in the receipt of proceeds in the amount of $180,000, and the issuance of 300,000 shares. In total, during the first quarter of 2019, the Company has raised $4.3 million and issued 7,141,454 shares, and no additional warrants. Effective March 31, 2019, the Company paid all outstanding Executive Deferred Compensation amounts. The total amount settled is $730,869, comprised of $603,294 outstanding at December 31, 2018, and $127,575 additional deferrals recorded during the first quarter of 2019. One-third of the total outstanding Executive Deferred Compensation amount, or $243,623, was paid in cash. The remaining balance was settled by granting the Executives a warrant exercisable for five years to purchase the Company’s stock at an exercise price of $0.70 per share, the closing price of our common stock on March 19, 2019. The total number of the warrants issued of 1,827,173 was determined using the Black Sholes valuation methodology, and by placing a fifty percent premium on the cash value of the remaining two thirds of total outstanding Executive Deferred Compensation as of March 31, 2019. The Company entered into an agreement to lease office space, beginning April 1, 2019 through March 31, 2023. For the first twelve months base rent is $6,175 with annual increases of approximately 3%.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Consolidation	Basis of Consolidation The consolidated financial statements include the financial statements of the Company and our wholly owned subsidiaries, Barfresh Inc. and Barfresh Corporation Inc. All inter-company balances and transactions among the companies have been eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the years reported. Actual results may differ from these estimates.
Concentration of Credit Risk	Concentration of Credit Risk The amount of cash on deposit with financial institutions exceeds the $250,000 federally insured limit at December 31, 2018 and 2017. However, we believe that cash on deposit that exceeds $250,000 in the financial institutions is financially sound and the risk of loss is minimal.
Fair Value Measurement	Fair Value Measurement Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange. Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs. Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights. Our financial instruments consist of cash, accounts receivable, accounts payable, accrued expenses, derivative liabilities, and convertible notes. The carrying value of our financial instruments approximates their fair value, except for the derivative liability in which carrying value is fair value.
Accounts Receivable	Accounts Receivable Accounts receivable are typically unsecured. Our credit policy calls for payment generally within 30 days. The credit worthiness of a customer is evaluated prior to a sale. As of December 31, 2018 and 2017, the company’s allowance for doubtful accounts was $61,788 and $0, respectively. There was bad debt expense for the year ended December 31, 2018 of $61,788 and no bad debt expense for the year ended December 31, 2017. The allowance was applied to certain receivable accounts which are over 95 days.
Inventory	Inventory Inventory consists of finished goods and is carried at the lower of cost or realizable value on a first in first out basis. The company monitors the remaining useful life of its inventory and establishes a reserve of obsolescence where appropriate. As of December 31, 2018 and 2017, the Company’s inventory reserve was $31,237 and $0, respectively.
Intangible Assets	Intangible Assets Intangible assets are comprised of patents, net of amortization and trademarks. The patent costs are being amortized over the life of the patent, which is twenty years from the date of filing the patent application. In accordance with ASC Topic 350 Intangibles - Goodwill and Other In accordance with ASC 350 legal costs related to trademarks have been capitalized. We have determined that trademarks have an indeterminable life and therefore are not being amortized.
Long-Lived Assets and Other Acquired Intangible Assets	Long-Lived Assets and Other Acquired Intangible Assets We evaluate the recoverability of property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of property and equipment and intangible assets is not recoverable, the carrying amount of such assets is reduced to fair value. We have not recorded any significant impairment charges during the years presented.
Property, Plant, and Equipment	Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation and accumulated impairment loss, if any. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are being amortized over the shorter of the useful life of the asset or the lease term that includes any expected renewal periods that are deemed to be reasonably assured. The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Manufacturing equipment and customer equipment: 3 years to 7 years Leasehold improvements: 2 years Vehicles 5 years
Revenue Recognition	Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, revenue is recognized when a customer obtains ownership of promised goods. The Company adopted this standard at the beginning of fiscal year 2018, with no significant impact to its financial position or results of operations, using the modified retrospective method. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods. The Company applies the following five steps: 1) Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable. For the Company, the contract is the approved sales order, which may also be supplemented by other agreements that formalize various terms and conditions with customers. 2) Identify the performance obligation in the contract Performance obligations promised in a contract are identified based on the goods or that will be transferred to the customer. For the Company, this consists of the delivery of frozen beverages, which provide immediate benefit to the customer. 3) Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods, and is generally stated on the approved sales order. Variable consideration, which typically includes volume-based rebates or discounts, are estimated utilizing the most likely amount method. 4) Allocate the transaction price to performance obligations in the contract 5) Recognize Revenue when or as the Company satisfies a performance obligation The Company recognizes revenue from the sale of frozen beverages when title and risk of loss passes and the customer accepts the goods, which generally occurs at delivery. Customer sales incentives such as volume-based rebates or discounts are treated as a reduction of sales at the time the sale is recognized. Shipping and handling costs are treated as fulfillment costs and presented in distribution, selling and administrative costs. The company evaluated the requirement to disaggregate revenue, and concluded that substantially all of its revenue comes from a single product, frozen beverages.
Research and Development	Research and Development Expenditures for research activities relating to product development and improvement are charged to expense as incurred. We incurred $674,224 and $574,989, in research and development expenses for the years ended December 31, 2018 and 2017, respectively.
Shipping and Storage Costs	Shipping and Storage Costs Shipping and handling costs are included in general and administrative expenses. For the years ended December 31, 2018 and 2017, shipping and handling costs totaled $864,871 and $619,871, respectively.
Rent Expense	Rent Expense We recognize rent expense on a straight-line basis over the reasonably assured lease term as defined in ASC Topic 840, Leases
Income Taxes	Income Taxes The provision for income taxes is determined in accordance with the provisions of ASC Topic 740, Accounting for Income Taxes ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements, uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. ASC 740 requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of evidence, it is more than likely than not that some portion or all of the deferred tax assets will not be recognized. For the years ended December 31, 2018 and 2017 we did not have any interest and penalties or any significant unrecognized uncertain tax positions.
Derivative Liability	Derivative Liability The Company evaluates its convertible instruments, options, warrants or other contracts to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging.” The result of this accounting treatment is that the fair value of any derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as gain/loss from derivative liability. Upon conversion or exercise of a derivative instrument, the instrument is marked to fair value at the conversion date and then that fair value is reclassified to equity. We analyzed the derivative financial instruments in accordance with ASC 815. The objective is to provide guidance for determining whether an equity-linked financial instrument is indexed to an entity’s own stock. This determination is needed for a scope exception which would enable a derivative instrument to be accounted for under the accrual method. The classification of a non-derivative instrument that falls within the scope of ASC 815-40-05 “Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock” also hinges on whether the instrument is indexed to an entity’s own stock. A non-derivative instrument that is not indexed to an entity’s own stock cannot be classified as equity and must be accounted for as a liability. There is a two-step approach in determining whether an instrument or embedded feature is indexed to an entity’s own stock. First, the instrument’s contingent exercise provisions, if any, must be evaluated, followed by an evaluation of the instrument’s settlement provisions. The Company utilized the fair value standard set forth by the Financial Accounting Standards Board, defined as the amount at which the assets (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between willing parties, that is, other than in a forced or liquidation sale.
Earnings Per Share	Earnings per Share We calculate net loss per share in accordance with ASC Topic 260, Earnings per Share
Stock Based Compensation	Stock Based Compensation We calculate stock compensation in accordance with ASC Topic 718, Compensation-Stock Based Compensation
Reclassifications	Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated financial statements to maintain consistency between periods presented. The reclassifications had no impact on net income or stockholder’s equity.
Recent Pronouncements	Recent pronouncements From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective may have an impact on our results of operations and financial position. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, to improve financial reporting about leasing transactions. This ASU will require organizations that lease assets (“lessees”) to recognize a lease liability and a right-of-use asset on its balance sheet for all leases with terms of more than twelve months. A lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset represents the lessee’s right to use, or control use of, a specified asset for the lease term. The amendments in this ASU leaves the accounting for the organization that own the assets leased to the lessee (“lessor”) largely unchanged except for targeted improvements to align it with the lessee accounting model and Topic 606, “Revenue from Contracts with Customers”. The Company has evaluated the effect of the standard on our financial statements. Based on our evaluation, we do not expect there to be material changes to both our current and long-term lease liabilities and our fixed assets of our limited number of operating leases that will be converted to financing leases under the new guidance. The Company does not plan to adopt the standard until the interim period ended March 31, 2019.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Summary of Estimated Useful Lives of Assets	The estimated useful lives used for financial statement purposes are: Furniture and fixtures: 5 years Manufacturing equipment and customer equipment: 3 years to 7 years Leasehold improvements: 2 years Vehicles 5 years

Property Plant and Equipment (T

Property Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Major Classes of Property and Equipment	Major classes of property and equipment at December 31, 2018 and 2017 consist of the following: 2018 2017 Furniture and fixtures $ 1,524 $ 1,524 Manufacturing Equipment and customer equipment 3,118,391 1,952,538 Leasehold Improvements 4,886 4,886 Vehicles 29,696 29,696 3,154,497 1,988,644 Less: accumulated depreciation (1,190,846 ) (665,657 ) 1,963,651 1,322,987 Equipment not yet placed in service 536,605 437,903 Property and equipment, net of depreciation $ 2,500,254 $ 1,760,890

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Estimated Future Amortization Expense Related to Intangible Property	Estimated future amortization expense related to patents as of December 31, 2018, is as follows: Total Amortization Years ending December 31, 2019 $ 63,610 2020 63,610 2021 63,610 2022 63,610 2023 63,610 Later years 116,430 $ 434,480

Convertible Notes (Related an_2

Convertible Notes (Related and Unrelated Party) (Tables)	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Schedule of Fair Value Assumptions Used	Expected life (in years) 3 Volatility (based on a comparable company) 54.82 % Risk Free interest rate 2.41 % Dividend yield (on common stock) - Expected life (in years) 3 Volatility (based on a comparable company) 55.49 Risk Free interest rate 2.45 Dividend yield (on common stock) - Expected life (in years) 3 Volatility (based on a comparable company) 59.00 Risk Free interest rate 2.83 Dividend yield (on common stock) -
Schedule of Convertible Notes	The convertible notes consist of the following components as of the year-end: December 31, 2018 Convertible notes $ 2,704,800 Less: Debt discount (warrant value) (325,747 ) Less: Debt discount (derivative value)(Note 7) (638,988 ) Less: Debt discount (issuance costs paid) (27,000 ) Less: Note conversion (453,000 ) Add: Debt discount amortization 481,042 $ 1,741,107 The convertible notes consist of the following components as of the year-end: December 31, 2018 Convertible notes $ 1,363,200 Less: Debt discount (warrant value) (212,763 ) Less: Debt discount (derivative value)(Note 7) (697,186 ) Less: Debt discount (issuance costs paid) (23,700 ) Add: Debt discount amortization 38,665 $ 468,216
Schedule of Future Maturities of Convertible Notes	Future maturity of convertible notes are as follow: Total Convertible Notes Years ending December 31, 2019 $ - 2020 3,615,000 2021 - 2022 - 2023 - $ 3,615,000

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)	12 Months Ended
	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value of the Derivative Liability	The fair value of the derivative liability for CN Convertible Note 1 of 2 and CN Note Warrant Acceleration was calculated using the Black-Scholes model using the following assumptions. 14-Mar-18 11-Apr-18 31-Dec-18 Expected life 2 1.96 1.20 Volatility (based on comparable company) 49.00 % 53.93 % 72.03 % Risk Fee interest rate 2.41 % 2.32 % 2.48 % Dividend yield (on common stock) - - - The fair value of the derivative liability for CN Convertible Note 2 of 2 was calculated using the Black-Scholes model using the following assumptions. 30-Nov-18 31-Dec-18 Expected life 2 1.92 Volatility (based on comparable company) 61.17 % 63.70 % Risk Fee interest rate 2.80 % 2.48 % Dividend yield (on common stock) - -
Schedule of Derivative Liability Measured at Fair Value on a Recurring Basis	Reconciliation of the derivative liability measured at fair value on a recurring basis with the use of significant unobservable inputs (level 3) from December 31, 2017 to December 31, 2018: December 31, 2017 $ - Initial value - March 14, 2018 569,588 Initial value - April 11, 2018 69,400 Initial value - November 30, 2018 697,186 Fair value of settlement from debt conversion (208,980 ) Loss from change in value 198,459 For the period ended December 31, 2018 $ 1,325,653
Schedule of Fair Value Hierarchy of Assets and Liabilities	The following table presents the Company’s fair value hierarchy for applicable assets and liabilities measured at fair value as of December 31, 2018. Level 1 Level 2 Level 3 Total Derivative Liability $ - - 1,325,653 $ 1,325,653

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of Minimum Requirements Under Non-cancellable Leases	The aggregate minimum requirements are as follows: For years ending December 31, 2019 43,462 $ 43,462

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Summary of Fair Value of Options Using Black-Sholes Option Pricing Model	Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 74.09% to 82.65 Risk Free interest rate 1.24% to 1.73 Dividend yield (on common stock) - Expected life (in years) 5.5 to 8 Volatility (based on a comparable company) 59.82%-70.29 Risk Free interest rate 2.78%-2.93 Dividend yield (on common stock) -
Summary of Outstanding Stock Options Issued to Employees and Directors	The following is a summary of outstanding stock options issued to employees and directors as of December 31, 2018: Number of Options Exercise price per share $ Average remaining term in years Aggregate intrinsic value at date of grant $ Outstanding January 1, 2017 5,862,442 .45 - .87 - Issued 1,924,977 .40 - .79 Cancelled (122,000 ) Exercised (950,000 ) Outstanding December 31, 2017 6,715,419 .40 - .87 Issued 1,542,111 .50 - .60 Cancelled (321,183 ) Exercised (508,333 ) Outstanding December 31, 2018 7,428,014 .40 - .87 5.48 Exercisable , December 31 2018 3,586,396 .40 - .87 4.34 -

Outstanding Warrants (Tables)

Outstanding Warrants (Tables)	12 Months Ended
	Dec. 31, 2018
Outstanding Warrants
Summary of Outstanding Warrants	The following is a summary of all outstanding warrants as of December 31, 2018: Number of warrants price per share remaining term in years intrinsic value at date of grant Warrants issued in connection with private placements of common stock 21,029,808 $ 0.53 - $1.00 2.02 $ - Warrants issued in connection with private placement of notes 1,335,000 $ 1.00 2.00 $ - Warrants issued in connection with convertible note 2,940,779 $ 0.70 2.37 $ -

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Summary of Income Tax Provision (Benefit)	Income tax provision (benefit) for the years ended December 31, 2018 and 2017 is summarized below: 2018 2017 Current: Federal $ - $ - State - - Total current - - Deferred: Federal (922,100 ) (746,700 ) State (144,700 ) (117,200 ) Total deferred (1,066,800 ) (863,900 ) Change in valuation allowance $ 1,066,800 $ 863,900
Summary of Statutory Federal Income Tax Rate Before Provision for Income Taxes	The sources and tax effect of the differences are as follows: 2018 2017 Income tax provision at the federal statutory rate 21.0 % 34.0 % State income taxes, net of federal benefit 3.3 % 3.3 % Permanent Difference (2.5 %) (5.46 %) Effect of rate change - % (41.53 %) Effect of change in valuation allowance (21.8 %) 9.69 % - % - %
Schedule of Components of Net Deferred Income Tax Assets	Components of the net deferred income tax assets at December 31, 2018 and 2017 were as follows: 2018 2017 Net operating loss carryover $ 7,969,000 $ 6,902,200 Valuation allowance (7,969,000 ) (6,902,200 ) $ - $ -
Summary of Net Operating Loss Carry Forward Offset Future Taxable Income Expire	The loss will be available to offset future taxable income. If not used, this carry forward will expire as follows: 2030 $ 1,000 2031 $ 63,800 2032 $ 345,900 2033 $ 1,840,300 2034 $ 2,324,100 2035 $ 2,987,300 2036 $ 5,061,700 2037 $ 8,464,700 2038 $ 7,315,400 2039 $ 4,391,100

Business Segments and Custome_2

Business Segments and Customer Concentrations (Tables)	12 Months Ended
	Dec. 31, 2018
Segment Reporting [Abstract]
Schedule of Revenue by Major Customers by Reporting Segments	During the years ended December 31, 2018 and 2017, we operated in one segment. The following is a breakdown of customers representing more than 10% of sales for the year ended December 31, 2017: Revenue from customer Percentage of total revenue Customer A $ 1,243,341 62.3 % The following is a breakdown of customers representing more than 10% of sales for the year ended December 31, 2018: Revenue from customer Percentage of total revenue Customer A $ 1,465,189 32.84 % Customer B 522,512 11.71 %

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash federally insured limit value	$ 250,000	$ 250,000
Cash on deposit exceeds	250,000
Allowance for doubtful accounts receivable	61,788	0
Bad debt expense	61,788
Inventory reserve	$ 31,237	0
Intangible assets useful life	20 years
Research and development expenses	$ 674,224	574,989
Shipping and handling costs	$ 864,871	$ 619,871
Percentage of tax benefits likelihood being realized upon ultimate settlement	greater than 50%
April 1, 2019 [Member]
Right-of-use asset and liability for future commitments	$ 300,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Assets (Details)	12 Months Ended
	Dec. 31, 2018
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Manufacturing Equipment and Customer Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Manufacturing Equipment and Customer Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

Property Plant and Equipment (D

Property Plant and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 504,808	$ 268,784

Property Plant and Equipment -

Property Plant and Equipment - Schedule of Major Classes of Property and Equipment (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 3,154,497	$ 1,988,644
Less: accumulated depreciation	(1,190,846)	(665,657)
Property and equipment	1,963,651	1,322,987
Equipment not yet placed in service	536,605	437,903
Property and equipment, net of depreciation	2,500,254	1,760,890
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,524	1,524
Manufacturing Equipment and Customer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,118,391	1,952,538
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,886	4,886
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 29,696	$ 29,696

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Patent costs	$ 764,891	$ 764,891
Trademarks costs	103,309	88,853
Accumulated amortization on patents and trademarks	$ 330,411	266,801
Expiration date of patent	2025-12
Amortization of patent costs	$ 63,610	$ 62,099

Intangible Assets - Schedule of

Intangible Assets - Schedule of Estimated Future Amortization Expense Related to Intangible Property (Details)	Dec. 31, 2018USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 63,610
2020	63,610
2021	63,610
2022	63,610
2023	63,610
Later years	116,430
Intangible asset, net of amortization	$ 434,480

Short-Term Notes Payable (Detai

Short-Term Notes Payable (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2018	Sep. 30, 2018
Debt Disclosure [Abstract]
Short-term notes payable	$ 250,000
Debt interest rate	12.00%
Debt maturity date	Sep. 30, 2018
Description on maturity date	Original maturity date in September 2018 which was extended to December 31, 2018.
Repayment of short term notes		$ 50,000
Notes Payable		$ 200,000

Convertible Notes (Related an_3

Convertible Notes (Related and Unrelated Party) (Details Narrative)	Mar. 14, 2018USD ($)shares	Dec. 31, 2018USD ($)Segment$ / sharesshares	Apr. 30, 2018USD ($)Segment$ / sharesshares	Mar. 31, 2018USD ($)Segment$ / sharesshares
Debt interest rate				12.00%
Debt maturity date				Sep. 30, 2018
Three Investors [Member]
Debt instrument conversion amount	$ 453,000
Accrued interest	$ 30,459
Debt instrument conversion shares | shares	804,396
March 2018 Convertible Note [Member]
Convertible notes			$ 177,300
Notes purchased by significant shareholder			$ 30,000
Debt interest rate			10.00%
Debt maturity date			Mar. 14, 2020
Debt conversion price | $ / shares			$ 0.88
Closing price of the common stock, percentage			85.00%
Consecutive trading days | Segment			20
Debt conversion, description			The notes are convertible at any time prior to the due date into our common stock at conversion price of $0.88 per share or 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders' election; but in no events lower than $0.60 per share.
March 2018 Convertible Note One [Member]
Closing price of the common stock, percentage			85.00%
Consecutive trading days | Segment			20
Debt conversion, description			In addition, the interest is convertible at any time prior to the due dates into our common stock at conversion price of 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders' election; but in no events lower than $0.60 per share.
Warrant [Member]
Warrant issued | shares		678,864	937,373	1,331,583
Fair value of warrant per share | $ / shares		$ 0.31	$ 0.25	$ 0.17
Fair value aggregate amount		$ 212,763	$ 235,519	$ 220,548
Debt discount		$ 212,763	$ 105,199	220,548
Series CN Note 1 of 2 [Member]
Convertible notes				2,527,500
Notes purchased by significant shareholder				$ 840,000
Debt interest rate				10.00%
Debt maturity date				Mar. 14, 2020
Debt conversion price | $ / shares				$ 0.88
Closing price of the common stock, percentage				85.00%
Consecutive trading days | Segment				20
Debt conversion, description				The notes are convertible at any time prior to the due date into our common stock at conversion price of $0.88 per share or 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders' election; but in no events lower than $0.60 per share.
Convertible Notes [Member]
Closing price of the common stock, percentage		85.00%		85.00%
Consecutive trading days | Segment		20		20
Debt conversion, description		In addition, the interest is convertible at any time prior to the due dates into our common stock at conversion price of 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders' election; but in no event lower than $0.60 per share.		In addition, the interest is convertible at any time prior to the due dates into our common stock at conversion price of 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders' election; but in no event lower than $0.60 per share.
Series CN Notes investors [Member] | Minimum [Member]
Debt instrument effective rate			10.00%
Series CN Notes investors [Member] | Maximum [Member]
Debt instrument effective rate			20.00%
Series CN Notes investors [Member] | Warrants [Member]
Debt instrument effective rate			25.00%
Series CN Note 2 of 2 [Member]
Convertible notes		$ 1,363,200
Notes purchased by significant shareholder		$ 560,000
Debt interest rate		10.00%
Debt maturity date		Nov. 30, 2020
Debt conversion price | $ / shares		$ 0.88
Closing price of the common stock, percentage		85.00%
Consecutive trading days | Segment		20
Debt conversion, description		The notes are convertible at any time prior to the due date into our common stock at conversion price of $0.88 per share or 85% of the average closing price of the common stock over the twenty consecutive trading days immediately preceding the date of note holders' election; but in no events lower than $0.60 per share.
Series CN Note [Member]
Notes purchased by significant shareholder		$ 2,209,323
Related Party Convertible Notes [Member]
Notes purchased by significant shareholder		841,836
Unrelated Party Convertible Notes [Member]
Notes purchased by significant shareholder		$ 1,367,487

Convertible Notes - Schedule of

Convertible Notes - Schedule of Fair Value Assumptions Used (Details) - Warrant [Member]	1 Months Ended
	Dec. 31, 2018	Apr. 30, 2018	Mar. 31, 2018
Expected Life [Member]
Fair value assumptions, measurement input, term	3 years	3 years	3 years
Volatility [Member]
Fair value assumptions, measurement input, percentage	59.00%	55.49%	54.82%
Risk Free Interest Rate [Member]
Fair value assumptions, measurement input, percentage	2.83%	2.45%	2.41%
Dividend Yield [Member]
Fair value assumptions, measurement input, percentage	0.00%	0.00%	0.00%

Convertible Notes - Schedule _2

Convertible Notes - Schedule of Convertible Notes (Details)	Dec. 31, 2018USD ($)
Convertible Note One[Member]
Convertible notes	$ 2,704,800
Less: Debt discount (warrant value)	(325,747)
Less: Debt discount (derivative value) (Note 7)	(638,988)
Less: Debt discount (issuance costs paid)	(27,000)
Less: Note conversion	(453,000)
Add: Debt discount amortization	481,042
Total convertible notes	1,741,107
Convertible Note Two [Member]
Convertible notes	1,363,200
Less: Debt discount (warrant value)	(212,763)
Less: Debt discount (derivative value) (Note 7)	(697,186)
Less: Debt discount (issuance costs paid)	(23,700)
Add: Debt discount amortization	38,665
Total convertible notes	$ 468,216

Convertible Notes - Schedule _3

Convertible Notes - Schedule of Future Maturities of Convertible Notes (Details)	Dec. 31, 2018USD ($)
Debt Disclosure [Abstract]
Years ending December 31, 2019
Years ending December 31, 2020
Years ending December 31, 2021	3,615,000
Years ending December 31, 2022
Years ending December 31, 2023
Future maturity of convertible notes, total	$ 3,615,000

Derivative Liabilities (Details

Derivative Liabilities (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Nov. 30, 2018	Apr. 11, 2018	Mar. 14, 2018
Current derivative liabilities	$ 1,325,653
Loss on derivative liabilities	87,630
Gain on derivative liabilities	110,829
Fair value of derivative liabilities	$ 198,459
Series CN Convertible Notes 1 of 2 [Member]
Current derivative liabilities					$ 569,588
Series CN Notes Warrant Acceleration [Member]
Current derivative liabilities				$ 69,400
Series CN Convertible Note 2 of 2 [Member]
Current derivative liabilities			$ 697,186

Derivative Liabilities - Schedu

Derivative Liabilities - Schedule of Fair Value of the Derivative Liability (Details) - Derivative Liabilities [Member]	Nov. 30, 2018	Apr. 11, 2018	Mar. 14, 2018	Dec. 31, 2018
Series CN Convertible Note 1 of 2 and Series CN Note Warrant Acceleration [Member] | Expected Life [Member]
Fair value assumptions, measurement input, term		1 year 11 months 15 days	2 years	1 year 2 months 12 days
Series CN Convertible Note 1 of 2 and Series CN Note Warrant Acceleration [Member] | Volatility [Member]
Fair value assumptions, measurement input, percentage		53.93%	49.00%	72.03%
Series CN Convertible Note 1 of 2 and Series CN Note Warrant Acceleration [Member] | Risk Free Interest Rate [Member]
Fair value assumptions, measurement input, percentage		2.32%	2.41%	2.48%
Series CN Convertible Note 1 of 2 and Series CN Note Warrant Acceleration [Member] | Dividend Yield [Member]
Fair value assumptions, measurement input, percentage		0.00%	0.00%	0.00%
Series CN Convertible Note 2 of 2 [Member] | Expected Life [Member]
Fair value assumptions, measurement input, term	2 years			1 year 11 months 1 day
Series CN Convertible Note 2 of 2 [Member] | Volatility [Member]
Fair value assumptions, measurement input, percentage	61.17%			63.70%
Series CN Convertible Note 2 of 2 [Member] | Risk Free Interest Rate [Member]
Fair value assumptions, measurement input, percentage	2.80%			2.48%
Series CN Convertible Note 2 of 2 [Member] | Dividend Yield [Member]
Fair value assumptions, measurement input, percentage	0.00%			0.00%

Derivative Liabilities - Sche_2

Derivative Liabilities - Schedule of Derivative Liability Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Inputs, Level 3 [Member]	12 Months Ended
	Dec. 31, 2018USD ($)
Derivative liabilities, beginning balance
Initial value - March 14, 2018	569,588
Initial value - April 11, 2018	69,400
Initial value - November 30, 2018	697,186
Fair value of settlement from debt conversion	(208,980)
Loss from change in value	198,459
Derivative liabilities, ending balance	$ 1,325,653

Derivative Liabilities - Sche_3

Derivative Liabilities - Schedule of Fair Value Hierarchy of Assets and Liabilities (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Derivative Liability	$ 1,325,653
Fair Value, Inputs, Level 1 [Member]
Derivative Liability
Fair Value, Inputs, Level 2 [Member]
Derivative Liability
Fair Value, Inputs, Level 3 [Member]
Derivative Liability	$ 1,325,653

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Operating lease expire date	Mar. 31, 2019
Lease expense	$ 167,530	$ 132,620

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Minimum Requirements Under Non-cancellable Leases (Details)	Dec. 31, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 43,462
Total	$ 43,462

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Numbe of common stock issued for services	180,265	178,733
Numbe of common stock issued for services, value	$ 190,167	$ 112,251
Fair value of stock options	$ 543,550	999,682
Cancellation of options	321,183
Equity-based compensation included additional paid in capital	$ 598,768	$ 1,550,718
Unrecognized share-based compensation expenses, unvested options	$ 698,701
Weighted average period expected to be amortized	5 years 5 months 23 days
N Warrants [Member]
Class of Stock [Line Items]
Number of warrants exercised	250,000
Received shares during period	84,488
Date of Grant [Member]
Class of Stock [Line Items]
Common stock trading price, per share	$ 0.47
Date of Grant One [Member]
Class of Stock [Line Items]
Common stock trading price, per share	$ 0.52
Board of Directors [Member]
Class of Stock [Line Items]
Common stock shares issued, shares	183,240	95,995
Common stock shares issued, value	$ 100,000	$ 73,560
Option issued to purchase common stock	227,111	439,977
Stock option exercisable term	8 years	8 years
Number of resticted stock issued	786,890
Board of Directors [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.50	$ 0.77
Board of Directors [Member] | Maximum [Member]
Class of Stock [Line Items]
Exercise price of options ranged	$ 0.595	$ 0.79
Employees and Executives [Member]
Class of Stock [Line Items]
Option issued to purchase common stock	1,315,000	1,485,000
Exercise price of options ranged	$ 0.52
Stock option exercisable term	8 years	8 years
Stock option vesting period	3 years	3 years
Employees and Executives [Member] | Minimum [Member]
Class of Stock [Line Items]
Exercise price of options ranged		$ 0.55
Employees and Executives [Member] | Maximum [Member]
Class of Stock [Line Items]
Exercise price of options ranged		$ 0.68
Holders [Member] | Warrants [Member]
Class of Stock [Line Items]
Number of warrants exercised	1,933,333
Proceeds from issuance of warrants	$ 925,000
Received shares during period	1,933,333
Holders [Member] | Warrants One [Member]
Class of Stock [Line Items]
Received shares during period	107,821
Number of cashless basis of common stock issued	737,887

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Fair Value of Options Using Black-Sholes Option Pricing Model (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Volatility (based on a comparable company), minimum	59.82%	74.09%
Volatility (based on a comparable company), maximum	70.29%	82.65%
Risk Free interest rate. minimum	2.78%	1.24%
Risk Free interest rate, maximum	2.93%	1.73%
Dividend yield (on common stock)	0.00%	0.00%
Minimum [Member]
Expected life (in years)	5 years 6 months	5 years 6 months
Maximum [Member]
Expected life (in years)	8 years	8 years

Stockholders' Equity - Summar_2

Stockholders' Equity - Summary of Outstanding Stock Options Issued to Employees and Directors (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Options, Cancelled	(321,183)
Employees and Directors [Member]
Number of Options, Outstanding, Beginning	6,715,419	5,862,442
Number of Options, Issued	1,542,111	1,924,977
Number of Options, Cancelled	(321,183)	(122,000)
Number of Options, Exercised	(508,333)	(950,000)
Number of Options, Outstanding, Ending	7,428,014	6,715,419
Number of Options, Exercisable	3,586,396
Exercise price per share, Cancelled
Exercise price per share, Exercised
Average remaining term in years, Outstanding, Beginning	0 years
Average remaining term in years, Outstanding, Ending	5 years 5 months 23 days
Average remaining term in years, Exercisable	4 years 4 months 2 days
Aggregate intrinsic value at date of grant, Outstanding, Beginning
Aggregate intrinsic value at date of grant, Outstanding, Ending
Aggregate intrinsic value at date of grant, Exercisable
Employees and Directors [Member] | Minimum [Member]
Exercise price per share, Outstanding, Beginning	$ 0.40	$ 0.45
Exercise price per share, Issued	0.50	0.40
Exercise price per share, Outstanding, Ending	0.40	0.40
Exercise price per share, Exercisable	0.40
Employees and Directors [Member] | Maximum [Member]
Exercise price per share, Outstanding, Beginning	0.87	0.87
Exercise price per share, Issued	0.60	0.79
Exercise price per share, Outstanding, Ending	0.87	$ 0.87
Exercise price per share, Exercisable	$ 0.87

Outstanding Warrants - Summary

Outstanding Warrants - Summary of Outstanding Warrants (Details) - Warrant [Member]	12 Months Ended
	Dec. 31, 2018USD ($)$ / sharesshares
Convertible Note [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants | shares	2,940,779
Exercise price per share	$ 0.70
Average remaining term in years	2 years 4 months 13 days
Aggregate intrinsic value at date of grant | $
Private Placements of Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants | shares	21,029,808
Average remaining term in years	2 years 7 days
Aggregate intrinsic value at date of grant | $
Private Placements of Common Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 0.53
Private Placements of Common Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share	$ 1
Private Placement of Notes [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants | shares	1,335,000
Exercise price per share	$ 1
Average remaining term in years	2 years
Aggregate intrinsic value at date of grant | $

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Deferred tax net operating loss carryover	$ 7,969,000	$ 6,902,200
Reduction valuation allowance	1,066,800	$ 863,900
Net operating loss carry forward	32,795,300
Net operating loss carry forward amount does not expire under the Tax Cut and Job Act of 2017	$ 4,391,100

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Provision (Benefit) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current: Federal
Current: State
Total current
Deferred: Federal	(922,100)	(746,700)
Deferred:State	(144,700)	(117,200)
Total deferred	(1,066,800)	(863,900)
Change in valuation allowance	$ 1,066,800	$ 863,900

Income Taxes - Summary of Statu

Income Taxes - Summary of Statutory Federal Income Tax Rate Before Provision for Income Taxes (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax provision at the federal statutory rate	21.00%	34.00%
State income taxes, net of federal benefit	3.30%	3.30%
Permanent Difference	(2.50%)	(5.46%)
Effect of rate change	0.00%	(41.53%)
Effect of change in valuation allowance	(21.80%)	9.69%
Effective income tax rate, Total	0.00%	0.00%

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Net Deferred Income Tax Assets (Details) - USD ($)	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Net operating loss carryover	$ 7,969,000	$ 6,902,200
Valuation allowance	(7,969,000)	(6,902,200)
Deferred income tax assets, net

Income Taxes - Summary of Net O

Income Taxes - Summary of Net Operating Loss Carry Forward Offset Future Taxable Income Expire (Details)	12 Months Ended
	Dec. 31, 2018USD ($)
2030 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	$ 1,000
2031 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	63,800
2032 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	345,900
2033 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	1,840,300
2034 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	2,324,100
2035 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	2,987,300
2036 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	5,061,700
2037 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	8,464,700
2038 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	7,315,400
2039 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry forward future expiration amount	$ 4,391,100

Business Segments and Custome_3

Business Segments and Customer Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2018Segment
Segment Reporting [Abstract]
Number of business segment	1

Business Segments and Custome_4

Business Segments and Customer Concentrations - Schedule of Revenue by Major Customers by Reporting Segments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenue from customer	$ 4,235,159	$ 1,997,012
Percentage of total revenue	10.00%	10.00%
Customer A [Member]
Revenue from customer	$ 1,465,189	$ 1,243,341
Percentage of total revenue	32.84%	62.30%
Customer B [Member]
Revenue from customer	$ 522,512
Percentage of total revenue	11.71%

Business Segments and Custome_5

Business Segments and Customer Concentrations - Schedule of Revenue by Major Customers by Reporting Segments (Details) (Parenthetical)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting [Abstract]
Maximum percentage of customers representing of sales	10.00%	10.00%

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash	$ 1,041,569	$ 1,304,916	$ 9,180,947
Reducing general and administrative expenses	$ 1,700,000
Reducing general and administrative expenses, description	We have continued to significantly reduce core operating expenses, reducing total General and Administrative Expense in 2018 by $1.7 million, or 18%, as compared with 2017.
Deferred Executive compensation	$ 603,294
First Quarter of 2019 [Member]
Proceeds from capital investment	$ 2,400,000
Number of shares issue	3,833,333
Deferred Executive compensation	$ 730,869
Payment of cash	$ 243,623
First Quarter of 2019 [Member] | I Warrants [Member] | Maximum [Member]
Warrant exercise price	$ 1
First Quarter of 2019 [Member] | I Warrants [Member] | Minimum [Member]
Warrant exercise price	$ 0.60
First Quarter of 2019 [Member] | I Warrant Holders [Member]
Proceeds from capital investment	$ 1,700,000
Warrant exercise price	$ 0.60
Number of warrant converted	2,841,454
First Quarter of 2019 [Member] | G Series Warrants [Member]
Proceeds from capital investment	$ 180,000
First Quarter of 2019 [Member] | Executives Warrants [Member]
Warrant exercise price	$ 0.70
Remaining balance of warrants	487,246
Warrant term	5 years
First Quarter of 2019 [Member] | Private Placement Offering [Member]
Completed funding efforts amount	$ 4,300,000
Stock issued price per shares	$ 0.60

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred executive compensation		$ 603,294
Operating lease expire date		Mar. 31, 2019
Lease expense		$ 167,530	$ 132,620
April 1, 2019 [Member]
Operating lease expire date		Mar. 21, 2023
Lease expense		$ 6,175
Base rent annual increase percentage		3.00%
Subsequent Event [Member]
Proceeds from private placement	$ 4,300,000
Number of shares issue	7,141,454
Deferred executive compensation	$ 730,869
Additional deferred executive compensation	127,575
Payment of cash	243,623
Subsequent Event [Member] | I Warrants [Member]
Proceeds from private placement	$ 1,700,000
Warrant exercise price	$ 0.60
Number of warrant converted	2,841,454
Subsequent Event [Member] | I Warrants [Member] | Maximum [Member]
Warrant exercise price	$ 1
Subsequent Event [Member] | I Warrants [Member] | Minimum [Member]
Warrant exercise price	$ 0.60
Subsequent Event [Member] | G Series Warrants [Member]
Proceeds from private placement	$ 180,000
Number of shares issue	300,000
Subsequent Event [Member] | Executives Warrants [Member]
Warrant exercise price	$ 0.70
Warrant term	5 years
Number of warrants issued	1,827,173
Subsequent Event [Member] | Private Placement Offering [Member]
Stock issued price per shares	$ 0.60
Proceeds from private placement	$ 2,400,000
Number of shares issue	3,833,333