0001171843-18-003811.txt : 20180510 0001171843-18-003811.hdr.sgml : 20180510 20180510151802 ACCESSION NUMBER: 0001171843-18-003811 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 52 CONFORMED PERIOD OF REPORT: 20180331 FILED AS OF DATE: 20180510 DATE AS OF CHANGE: 20180510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADOMANI, INC. CENTRAL INDEX KEY: 0001563568 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38078 FILM NUMBER: 18822075 BUSINESS ADDRESS: STREET 1: 4740 GREEN RIVER ROAD STREET 2: SUITE 106 CITY: CORONA STATE: CA ZIP: 92880 BUSINESS PHONE: (951) 407-9860 X205 MAIL ADDRESS: STREET 1: 4740 GREEN RIVER ROAD STREET 2: SUITE 106 CITY: CORONA STATE: CA ZIP: 92880 FORMER COMPANY: FORMER CONFORMED NAME: Adomani, Inc. DATE OF NAME CHANGE: 20121203 10-Q 1 f10q_051118p.htm FORM 10-Q

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2018

 

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ___________ to ___________

 

Commission File Number 001-38078

 

 

ADOMANI, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware 46-0774222

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

4740 Green River Road, Suite 106

Corona, CA 92880

(Address of principal executive offices, including zip code)

 

(951) 407-9860

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No ☐

 

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  ☒    No ☐

 

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer Accelerated filer
       
Non-accelerated filer ☒ (Do not check if a smaller reporting company) Smaller reporting company
    Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐   No☒

 

The number of shares outstanding of the Registrant’s only class of common stock as of May 10, 2018 was 71,737,597.

 

 

 

 

 

ADOMANI, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2018

 

Part I. FINANCIAL INFORMATION

 

    PAGE
     
Item 1. Financial Statements:  
     
  Unaudited Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017 2
     
  Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2018 and 2017 3
     
  Unaudited Consolidated Statement of Stockholders’ Equity for the Three Months Ended March 31, 2018 4
     
  Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2018 and 2017 5
     
  Notes to Unaudited Consolidated Financial Statements 6
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 11
     
Item 3. Quantitative and Qualitative Disclosure about Market Risk 20
     
Item 4. Controls and Procedures 20
     
Part II. OTHER INFORMATION
     
Item 1. Legal Proceedings 21
     
Item 1A. Risk Factors 21
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21
     
Item 3. Defaults Upon Senior Securities 21
     
Item 4. Mine Safety Disclosures 21
     
Item 5. Other Information 21
     
Item 6. Exhibits 21
     
Signatures 22

 

 

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This Quarterly Report on Form 10-Q (“Quarterly Report”) contains “forward-looking statements” that involve substantial risks and uncertainties. Forward-looking statements relate to future events or our future financial performance or condition and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “should,” “will” and “would” or the negatives of these terms or other comparable terminology.

 

You should not place undue reliance on forward-looking statements. The cautionary statements set forth in this Quarterly Report, including in “Risk Factors” and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things:

 

Our ability to generate demand for our zero-emission or hybrid drivetrains and conversion kits in order to generate revenue;

 

Our dependence upon external sources for the financing of our operations;

 

Our ability to effectively execute our business plan;

 

Our ability to scale our assembling and converting processes effectively and quickly from low volume production to high volume production;

 

Our ability to manage our expansion, growth and operating expenses and reduce and adequately control the costs and expenses associated with operating our business;

 

Our ability to obtain, retain and grow our customers;

 

Our ability to enter into, sustain and renew strategic relationships on favorable terms;

 

Our ability to achieve and sustain profitability;

 

Our ability to evaluate and measure our current business and future prospects;

 

Our ability to compete and succeed in a highly competitive and evolving industry;

 

Our ability to respond and adapt to changes in electric or hybrid drivetrain technology; and

 

Our ability to protect our intellectual property and to develop, maintain and enhance a strong brand.

 

You should read this Quarterly Report and the documents that we reference elsewhere in this Quarterly Report completely and with the understanding that our actual results may differ materially from what we expect as expressed or implied by our forward-looking statements. Factors that may cause or contribute to such differences include, but are not limited to, those discussed in greater detail, particularly in Part I, Item 2. (Management’s Discussion and Analysis of Financial Condition and Results of Operations) and in Part II. Item 1A (Risk Factors) of this Quarterly Report. In light of the significant risks and uncertainties to which our forward-looking statements are subject, you should not place undue reliance on or regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. These forward-looking statements represent our estimates and assumptions only as of the date of this Quarterly Report regardless of the time of delivery of this Quarterly Report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this Quarterly Report.

 

Unless expressly indicated or the context requires otherwise, references in this Quarterly Report on Form 10-Q to “ADOMANI,” “Company,” “we,” “our,” and “us” refer to ADOMANI, Inc. and our subsidiaries, unless the context indicates otherwise.

 

1

 

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

 

ADOMANI, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

         

   March 31,  December 31,
   2018  2017
ASSETS          
Current assets:          
Cash and cash equivalents  $8,199   $2,446 
Accounts receivable   464    - 
Notes receivable, net   1,000    1,000 
Inventory, net   210    225 
Other current assets   1,658    778 
Total current assets   11,531    4,449 
Property and equipment, net   482    487 
Other non-current assets   368    386 
Total assets  $12,381   $5,322 
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Accounts payable  $176   $30 
Accrued liabilities   904    514 
Notes payable, net   -    2,149 
Total current liabilities   1,080    2,693 
           
Long-term liabilities          
Other non-current liabilities   271    289 
Total liabilities   1,351    2,982 
           
Commitments and contingencies          
           
Stockholders' equity:          
Preferred stock, 100,000,000 authorized $0.00001 par value none issued and outstanding, respectively   -    - 
Common stock, 2,000,000,000 authorized $0.00001 par value,  71,737,597 and 68,070,930 issued and outstanding, respectively   1    1 
Additional paid-in capital   58,083    45,316 
Accumulated deficit   (47,054)   (42,977)
Total stockholders' equity   11,030    2,340 
Total liabilities and stockholders' equity  $12,381   $5,322 

 

 

See Accompanying Notes to Unaudited Consolidated Financial Statements.

  

2

 

ADOMANI, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except per share data)

 

   Three Months Ended
   March 31, 2018  March 31, 2017
       
Sales  $464   $- 
Cost of sales   479    - 
Gross profit (loss)   (15)   - 
Operating expenses:          
General and administrative   3,917    1,297 
Consulting   47    19 
Research and development   156    59 
Total operating expenses, net   4,120    1,375 
Loss from operations   (4,135)   (1,375)
           
Other income (expense):          
Interest expense, net   (5)   (215)
Other income (expense)   66    26 
Total other income (expense)   61    (189)
           
Loss before income taxes   (4,074)   (1,564)
Income tax expense   (3)   (2)
Net loss  $(4,077)  $(1,566)
           
Net loss per share to common stockholders:          
Basic and diluted  $(0.06)  $(0.02)
           
Weighted shares used in the computation of net loss per share:          
Basic and diluted   71,370,930    63,121,402 

 

See Accompanying Notes to Unaudited Consolidated Financial Statements.

 

3

 

ADOMANI, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

(in thousands, except per share data)

(unaudited)

 

 

         Additional      
   Common Stock  Paid-In  Accumulated  Stockholders'
   Shares  Amount  Capital  Deficit  Equity
Balance, December 31, 2017   68,070,930   $1   $45,316   $(42,977)  $2,340 
                          
Common stock issued for cash   3,666,667    -    11,000         11,000 
Offering costs netted against proceeds from common stock issued for cash   -    -    (1,197)        (1,197)
Stock based compensation   -    -    2,964         2,964 
Net loss   -    -         (4,077)   (4,077)
Balance, March 31, 2018   71,737,597   $1   $58,083   $(47,054)  $11,030 

 

 

 

See Accompanying Notes to Unaudited Consolidated Financial Statements.

 

4

 

ADOMANI, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

   Three Months Ended
   March 31, 2018  March 31, 2017
Cash flows from operating activities:          
Net loss   (4,077)   (1,566)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   8    3 
Accretion of discount on note receivable   -    (25)
Amortization of debt discount   -    109 
Stock based compensation expense   2,964    606 
Loss on write-down of property and equipment, net   15    - 
Gain on disposal of property and equipment   -    (1)
Changes in assets and liabilities:          
Accounts receivable   (464)   - 
Other current assets   (956)   (7)
Other non-current assets   18    3 
Accounts payable   146    168 
Accrued liabilities   390    (31)
Other non-current liabilities   (18)   - 
Net cash used in operating activities   (1,974)   (741)
           
Cash flows from investing activities:          
Purchase of property and equipment, net   (3)   (35)
Net cash used in investing activities   (3)   (35)
           
Cash flows from financing activities:          
Proceeds from issuance of common stock   11,000    - 
Proceeds from issuance of debt, net of issuance costs   -    500 
Principal repayments of debt   (2,149)   (10)
Payments for deferred offering costs   (1,121)   (188)
Net cash provided by financing activities   7,730    302 
           
Net change in cash and cash equivalents   5,753    (474)
Cash and cash equivalents at the beginning of the period   2,446    938 
           
Cash and cash equivalents at the end of the period  $8,199   $464 
           
Supplemental cash flow disclosures:          
Cash paid for interest expense  $5   $96 
Cash paid for income taxes  $-   $- 
           
Non-cash transactions:          
Common stock issued due to debt conversion  $-   $726 
Deferred offering costs reclassified to equity  $76   $- 

 

See Accompanying Notes to Unaudited Consolidated Financial Statements.

 

5

 

ADOMANI, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

1. Organization and Operations

 

ADOMANI, Inc. (“we”, “us”, “our” or the “Company”) is a provider of zero-emission electric and hybrid vehicles and replacement drivetrains that is focused on reducing the total cost of vehicle ownership. The Company’s drivetrain systems are designed to help fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance. The Company’s designs and causes to be designed advanced zero-emission electric and hybrid drivetrain systems for integration in new school buses and medium to heavy-duty commercial fleet vehicles. 

 

2. Summary of Significant Accounting Policies

 

Basis of Presentation—The consolidated financial statements and related disclosures as of March 31, 2018 and for the three months ended March 31, 2018 and 2017 are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with our audited financial statements for the years ended December 31, 2017 and 2016 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year.

 

Principles of Consolidation—The accompanying financial statements reflect the consolidation of the individual financial statements of ADOMANI, Inc., ADOMANI California, Inc., Adomani (Nantong) Automotive Technology Co. Ltd., School Bus Sales of California, Inc., and Zero Emission Truck and Bus Sales of Arizona, Inc. All significant intercompany accounts and transactions have been eliminated.

 

Use of Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Fair Value of Financial Instruments—The carrying values of our financial instruments, including cash, notes receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 820, “Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs that are supported by little or no market data and that require the reporting entity to develop its own assumptions.

 

6

 

The Company does not have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.

 

Revenue Recognition—The Company recognizes revenue from the sales of advanced zero-emission electric drivetrain systems for fleet vehicles and from contracting to provide engineering services. In May 2014, the FASB issued new accounting guidance, ASC Topic 606, “Revenue from Contracts with Customers”, to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The amendments in this guidance state an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized.

 

On January 1, 2018, the Company adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC Topic 605.

 

The adoption of ASC Topic 606 did not result in a cumulative impact on the Company as of January 1, 2018 and the application of ASC Topic 606 had no impact on its statement of operations for the three months ended March 31, 2018.

 

Net Loss Per Share—Basic net loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares of common stock outstanding is the basic weighted number of shares of common stock adjusted for any potentially dilutive debt or equity securities.

 

Concentration of Credit Risk—The Company has credit risks related to cash and cash equivalents on deposit with a federally insured bank, as at times it exceeds the $250,000 maximum amount insured by the Federal Deposit Insurance Corporation.

 

Recent Accounting Pronouncements—Management has considered all recent accounting pronouncements issued, but not effective, and does not believe that they will have a significant impact on the Company’s financial statements.

 

3. Property and Equipment, Net

 

Components of property and equipment, net, consist of the following as of March 31, 2018 and December 31, 2017:

 

   March 31,  December 31,
   2018  2017
Furniture and fixtures  $41,799   $38,540 
Leasehold improvements   11,638    11,638 
Computers   53,704    53,704 
Vehicles   -    - 
Test/Demo vehicles   407,612    407,612 
Total property and equipment   514,753    511,494 
Less accumulated depreciation   (32,664)   (24,427)
Net property and equipment  $482,089   $487,067 

 

Depreciation expense was $8,237 and $2,831 for the three months ended March 31, 2018 and 2017, respectively.

 

4. Notes Receivable

 

On June 29, 2017, the Company loaned $500,000 to an unaffiliated third party with engineering expertise in the electric bus technology industry, with whom the Company may seek an alliance at some future date, in order to provide it with working capital. The stated interest rate is 9% per annum, with interest payments due monthly beginning July 31, 2017. The note is secured by the assets of the borrower and was scheduled to mature on December 31, 2017. In February 2018, the parties agreed to extend the maturity date of the note to June 30, 2018. The note, as amended, is subject to an extension fee of $25,000 due no later than the maturity date.

 

The Company loaned an additional $500,000 to another unaffiliated third party in the zero-emissions technology industry in December 2016. This note is subject to monthly interest of $10,000 and was originally scheduled to mature on December 31, 2017. In January 2018, the parties agreed to extend the maturity of the note to April 30, 2018, and in April 2018, the parties agreed to further extend the maturity date of the note until June 30, 2018. The note, as amended, is subject to monthly interest of $10,000 and an extension fee of $50,000 due no later than the June 30, 2018 maturity date. The $50,000 extension fee is in lieu of the $25,000 extension fee required by the prior January 2018 amendment to the note (see Note 10).

 

7

 

5. Debt

 

On January 10, 2018, upon the Company’s receipt of the proceeds from its follow-on offering (described in Note 6), the Company repaid all remaining principal and any accrued and unpaid interest outstanding under the Company’s 9% secured notes, originally issued during 2015.

 

Details of notes payable at March 31, 2018 and December 31, 2017 are as follows:

 

   As of March 31,  As of December 31,
   2018  2017
Notes Payable          
Principal amount outstanding   -    2,149,000 
Cumulative discount for finance charges incurred   -    (514,753)
Cumulative discount for warrant   -    (349,042)
Cumulative discount for 9% notes   -    (50,000)
Cumulative amortization of finance charges   -    514,753 
Cumulative amortization of warrant expense   -    349,042 
Cumulative amortization of 9% notes   -    50,000 
Subtotal of notes payable   -    2,149,000 
Total of debt  $-   $2,149,000 

 

6. Common Stock

 

On January 9, 2018, the Company consummated the closing of a follow-on offering of units, each consisting of one share of common stock and a warrant to purchase 1.5 shares of common stock at an exercise price of $4.50. The Company sold an aggregate of 3,666,667 units for aggregate gross proceeds of approximately $11.0 million. Net proceeds received after deducting commissions, expenses and fees of approximately $1.2 million amounted to approximately $9.8 million. Under the terms of the underwriting agreement executed in connection with the follow-on offering, the Company issued to Boustead Securities, LLC and to Roth Capital Partners, LLC warrants to purchase an aggregate of 256,667 shares of common stock. The warrants to purchase 256,667 shares of common stock were valued using the Black-Scholes method, resulting in a fair market value of $598,737. The assumptions used in the valuation of the warrants included the term of five years, the exercise price of $3.75 per share, volatility of 92.20% and a risk-free interest rate of 2.13%. The fair value of the warrants was recorded as offering costs and netted against additional paid-in capital during the three months ended March 31, 2018.

 

8

 

7. Stock Warrants  

 

As of March 31, 2018, the Company has issued warrants to purchase an aggregate of 7,556,323 shares of common stock, consisting of the following. The Company’s stock warrant activity for the three months ended March 31, 2018 is summarized as follows:

 

      Weighted  Weighted
      Average  Average
   Number of  Exercise  Remaining
   Shares  Price  Contractual Life (years)
Outstanding at December 31, 2017   1,799,659   $4.42    3.87 
Granted   5,756,664   $4.47      
Forfeited               
Outstanding at March 31, 2018   7,556,323   $4.45    4.52 
                
Exercisable at March 31, 2018   7,299,656   $4.48    4.50 

 

As of March 31, 2018, the outstanding warrants have no intrinsic value.

 

8. Stock-Based Compensation

 

On March 6, 2018, Edward R. Monfort ceased serving as the Company’s Chief Technology Officer. Upon Mr. Monfort’s separation from service, the Company’s board of directors suspended Mr. Monfort’s outstanding options. Although such options remain outstanding, these were unexercisable as of March 31, 2018 and through the date of this Quarterly Report. As of March 31, 2018, outstanding options to purchase an aggregate of 15,150,000 shares of common stock are attributable to Mr. Monfort.

 

In March 2018, the Company determined that certain non-employees, to whom it previously granted options, were no longer providing services for the Company. As a result, the Company canceled unvested options to purchase 297,694 shares of common stock, effective February 28, 2018. Because of this cancellation, and in accordance with GAAP, the Company reversed $423,308 of previously recorded expense with respect to these unvested options.

 

9

 

Stock option activity for the three months ended March 31, 2018 is as follows:

 

      Weighted  Weighted
      Average  Average
   Number of  Exercise  Remaining
   Shares  Price  Contractual Life (years)
Outstanding at December 31, 2017   30,375,000   $1.33    4.0 
Granted   -           
Exercised               
Canceled/Forfeited   (297,694)          
Outstanding at March 31, 2018   30,077,306   $1.34    3.7 
                
Exercisable at March 31, 2018   10,897,776   $1.26    4.0 

 

Stock-based compensation expense was approximately $3.0 million and $606,216 for the three months ended March 31, 2018 and 2017, respectively, and is included in general and administrative expense in the accompanying unaudited consolidated statements of operations. As of March 31, 2018, the Company expects to recognize $25.1 million of stock-based compensation for the non-vested outstanding options over a weighted-average period of 1.9 years.

 

As of March 31, 2018, the outstanding options have an intrinsic value of approximately $28.6 million.

 

9. Commitments

 

Employment Agreements—We had previously entered into an employment agreement with our former Chief Technology Officer, Edward R. Monfort, with an effective date of June 1, 2016. The term of the employment agreement was two years, with an annual base salary of $120,000. Additionally, we agreed to pay up to $7,000 per month for invoiced expenses relating to research and development to ELO, LLC, which is owned by Mr. Monfort, as well as up to $3,000 per month for services to another consultant selected by Mr. Monfort. Effective as of March 6, 2018, we terminated our employment agreement with Mr. Monfort.

 

Operating Leases—In 2016, the Company signed a lease for office space in Los Altos, California, to serve as office space for its Northern California operations. The lease expired February 28, 2018 and the Company executed a new 10-month lease in March 2018. The total amount due under the lease is $4,730 and the lease period is from March 1, 2018 through December 31, 2018.

 

In April 2017, the Company signed a lease for storage space in Phoenix, Arizona to serve as a location to store vehicles and other equipment utilized for marketing and trade-show purposes. The lease is on a month-to-month basis and can be terminated by either party with 30-days’ notice. The total amount due monthly is $500.

 

In February 2017, the Company signed a lease for storage space in Stockton, California to serve as a location to store vehicles and other equipment utilized for marketing and trade-show purposes. The lease is on a month-to-month basis and can be terminated by either party with 30-days’ notice. The total amount due monthly is $1,000.

 

In October 2017, the Company signed a non-cancellable lease for its corporate office space in Corona, California, to serve as its corporate headquarters. The lease is for a period of 65 months, terminating February 28, 2023. The base rent for the term of the lease is $568,912. The total amount due monthly is $7,600 at commencement and will escalate to $10,560 by its conclusion. Additionally, the lease includes five months in which no rent payment is due.

 

Other Agreements—In 2015, the Company entered into a contract with THINKP3 to provide services with the goal of securing federal grant assistance for development of the Company’s zero-emission and hybrid transportation solutions for school bus, commercial, government and utility fleets. The initial term of this contract was December 1, 2015 through November 30, 2016. On November 21, 2016, the parties renewed the agreement through November 30, 2017. On November 7, 2017, the Company renewed the agreement through November 30, 2018. Fees for these services are $8,000 per month. The contract can be terminated by either party with 30-days’ advance notice.

 

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The following table summarizes our future minimum payments under contractual commitments, excluding debt, as of March 31, 2018:

 

   Payments due by period
   Total  Less than
one year
  1 - 3 years  4 - 5 years  More than 5
years
Operating lease obligations   572,409    101,457    234,984    235,968    - 
Employment contracts   1,090,000    440,000    500,000    150,000    - 
Total   1,662,409    541,457    734,984    385,968    - 

 

10. Subsequent Events

 

Effective May 2, 2018, the Company secured a line-of-credit from Morgan Stanley Private Bank, National Association (“Morgan Stanley”). Borrowings under the line of credit bear interest at 30 day LIBOR plus 2.0%. There is no maturity date for the line, but Morgan Stanley may at any time, in its sole discretion and without cause, demand the Company immediately repay any and all outstanding obligations in whole or in part. The line is secured by the assets maintained by the Company in Morgan Stanley accounts, which were approximately $7.5 million at May 2, 2018, and borrowings under the line may not exceed 95% of such assets, subject to a maximum of $7 million. Such borrowing threshold, however, is subject to change at Morgan Stanley’s discretion and depends upon the holdings in the Company’s account, the maturity dates of the securities in the account and the credit quality of the underlying insurers. On May 3, 2018, the Company drew down $400,000 on the line of credit.

 

By mutual consent, on April 25, 2018, the Company agreed to extend the maturity date of the note issued to the unaffiliated third party in the zero-emissions technology industry until June 30, 2018 (see Note 4). In exchange for extending the maturity date, the borrower agreed to pay the Company an extension fee of $50,000 due no later than the June 30, 2018 maturity date. The $50,000 extension fee is in lieu of the $25,000 extension fee required by a prior amendment to the note in January 2018. 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

  

The following discussion of our financial condition and the results of operations should be read in conjunction with the unaudited consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q (“Quarterly Report”). This discussion contains forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results to differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties, and other factors include, among others, those identified under the “Cautionary Statement Regarding Forward-Looking Statements” above, and elsewhere in this Quarterly Report, particularly in Part II. Item 1A. “Risk Factors,” below.

 

Overview

 

We are a provider of advanced zero-emission electric and hybrid vehicles and replacement drivetrains that is focused on reducing the total cost of vehicle ownership. Our drivetrain systems are designed to help fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance.

 

We design and cause to be designed advanced zero-emission electric and hybrid drivetrain systems for integration in new school buses and medium to heavy-duty commercial fleet vehicles. We also design and cause to be designed patented conversion kits to replace conventional drivetrain systems for combustion powered vehicles with zero-emission electric or hybrid drivetrain systems. The hybrid drivetrain systems are available in both an assistive hybrid format and a full-traction format for use in private and commercial fleet vehicles of all sizes. We seek to expand our product offerings to include the sale of zero-emission systems in vehicles manufactured by outside original equipment manufacturer (“OEM”) partners, but to be marketed, sold, warrantied and serviced through our developing distribution and service network.

 

Our drivetrain systems can be built with options for remote monitoring, electric power-export and various levels of grid-connectivity. Our zero-emission systems may also grow to include automated charging infrastructure and “intelligent” stationary energy storage that enables fast vehicle charging, emergency back-up facility power, and access to the developing, grid-connected opportunities for the aggregate power available from groups of large battery packs.

 

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We have generated minimal revenue from inception through March 31, 2018. We generated $425,000 in the fourth quarter of 2017 and $463,731 for the three months ended March 31, 2018. For the years ended December 31, 2017 and 2016, our net losses were $21.9 million and $10.7 million, respectively. For the three months ended March 31, 2018 and 2017, our net losses were $4.1 million and $1.6 million, respectively.

 

Factors Affecting Our Performance

 

We believe that the growth and future success of our business depend on various opportunities, challenges and other factors, including the following:

 

New Customers. We are competing with other companies and technologies to help fleet managers and their districts/companies more efficiently and cost-effectively manage their fleet operations. Once these fleet managers have decided they want to buy from us, we still face challenges helping them obtain financing options to reduce the cost barriers to purchasing. We may also encounter customers with inadequate electrical services at their facilities that may delay their ability to purchase from us.

 

Investment in Growth. We plan to continue to invest for long-term growth. We anticipate that our operating expenses will increase in the foreseeable future as we invest in research and development to enhance our zero-emission systems; design and develop our drivetrains and their components and coordinate the manufacturing thereof; increase our sales and marketing to acquire new customers; and increase our general and administrative functions to support our growing operations. We believe that these investments will contribute to our long-term growth, although they will adversely affect our results of operations in the near term. In addition, the timing of these investments can result in fluctuations in our annual and quarterly operating results.

 

Zero-emission electric and hybrid drivetrain experience. Our dealer and service network is not currently established, although we do have certain agreements in place. One issue they may have, and we may encounter, is finding appropriately trained technicians with zero-emission electric and hybrid drivetrain experience. Our performance will depend on having a robust dealer and service network, which will require appropriately trained technicians to be successful. Because vehicles that use our technology are based on a different platform than traditional internal combustion engines, individuals with sufficient training in zero-emission electric and hybrid vehicles may not be available to hire, and we may need to expend significant time and expense training the employees we do hire. If we are not able to attract, assimilate, train or retain additional highly qualified personnel in the future, or do so cost-effectively, our performance would be significantly and adversely affected.

 

Market Growth. We believe the market for all-electric and hybrid solutions for alternative fuel technology, and all-electric and hybrid vehicles in particular, will continue to grow as more purchases of new zero emission vehicles and as more conversions of existing fleet vehicles to zero-emission vehicles are made. However, unless the costs to produce such vehicles decrease dramatically, purchases of our products will continue to depend in large part on financing subsidies from government agencies. We cannot be assured of the continued availability or the amounts of such assistance to our customers.

 

Revenue Growth from Additional Products. We seek to add to our product offerings additional zero-emission vehicles of all sizes manufactured by outside OEM partners, to be marketed, sold, warrantied and serviced through our developing distribution and service network, as well as add other ancillary products discussed elsewhere in this Quarterly Report.

 

Revenue Growth from Additional Geographic Markets. We believe that growth opportunities for our products exist internationally in addition to domestically, and through our wholly-owned subsidiary Adomani (Nantong) Automotive Technology Co. Ltd. (“ADOMANI China”), we will be pursuing international growth as well. Our future performance will depend in part upon the growth of these additional markets. Accordingly, our business and operating results will be significantly affected by our ability to timely enter and effectively address these emerging markets and the speed with which and extent to which demand for our products in these markets grows.

 

Components of Our Results of Operations

 

Sales

 

Sales are recognized from the sales of advanced zero-emission electric and hybrid drivetrain systems for fleet vehicles and from contracting to provide engineering services. Sales are recognized in accordance with ASC Topic 606, as discussed in Note 2 to our unaudited consolidated financial statements included in this Quarterly Report.

 

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Cost of Sales

 

Cost of sales includes those costs related to the development, manufacture, and distribution of our products. Specifically, we include in cost of sales each of the following: material costs (including commodity costs); freight costs; labor and other costs related to the development and manufacture of our products; and other associated costs. Cost of sales for long-term contracts are recognized proportionate to the prescribed gross profit of each contract. Cost of sales also includes costs related to the valuation of inventory due to impairment, obsolescence, or shrinkage.

 

Selling, General and Administrative Expenses

 

Selling, general and administrative expenses include all corporate and administrative functions that support our company. These expenses also include stock-based compensation expense; warranty, including product recall and customer satisfaction program costs; consulting costs; and other costs that cannot be included in cost of sales.

 

Consulting and Research and Development Costs

 

These expenses are related to our consulting and research and development activity.

 

Other Income/Expenses, Net

 

Other income/expenses include non-operating income and expenses, including interest expense.

 

Provision for Income Taxes

 

We account for income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 740 “Income Taxes,” which requires the recognition of deferred income tax assets and liabilities for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC Topic 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations. Because we have incurred only losses to this point, no provision for income taxes has been made.

 

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Results of Operations

 

The following table compares operating data for the three months ended March 31, 2018 and 2017:

 

ADOMANI, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in thousands, except per share data)

 

   Three Months Ended
   March 31, 2018  March 31, 2017
Net sales  $464   $- 
Cost of sales   479    - 
Gross profit   (15)   - 
Operating expenses:          
General and administrative [1]   3,917    1,297 
Consulting   47    19 
Research and development   156    59 
Total operating expenses, net   4,120    1,375 
Loss from operations   (4,135)   (1,375)
           
Other income (expense):          
Interest expense, net   (5)   (215)
Other income (expense)   66    26 
Total other income (expense)   61    (189)
           
Loss before income taxes   (4,074)   (1,564)
Income tax expense   (3)   (2)
Net loss  $(4,077)  $(1,566)
           
Net loss per share to common stockholders:          
Basic and diluted  $(0.06)  $(0.02)
           
Weighted shares used in the computation of net loss per share:          
Basic and diluted   71,370,930    63,121,402 

 

[1]   Includes stock-based compensation expense as follows:        

 

   Three Months Ended
   March 31, 2018  March 31, 2017
General and administrative expenses   2,964    606 
Total stock-based compensation expense   2,964    606 

 

Sales

 

Sales were $463,731 and $0 for the three months ended March 31, 2018 and 2017, respectively. All sales for the three months ended March 31, 2018 were related to a U.S. Department of Energy (“DOE”) grant awarded to Blue Bird Corporation for which we were selected to provide products and services. Sales are recognized in accordance with ASC Topic 606, as discussed in Note 2 of the unaudited consolidated financial statements included in this Quarterly Report.

 

Cost of Sales

 

Cost of sales was $478,731 and $0 for the three months ended March 31, 2018 and 2017, respectively. During the three months ended March 31, 2018, we recorded $463,731 in cost of sales with respect to the DOE grant described in “Sales” above. The additional $15,000 in cost of sales during the three months ended March 31, 2018 related to a write-down of inventory recorded during the period.

 

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General and Administrative Expenses

 

General and administrative expenses consist primarily of the following:

 

personnel-related expenses, including stock-based compensation costs;

 

costs related to investor relations activities;

 

sales and marketing-related expenses; and

 

other expenses relating to the operations of the Company.

 

General and administrative expense was $3.9 million and $1.3 million for the three months ended March 31, 2018 and 2017, respectively. The increase is primarily due to an increase in stock-based compensation expense of $2.4 million for the three months ended March 31, 2018 as compared to the prior year period, which related to certain stock options granted in June 2017 (see “Options to Purchase Common Stock” below and Note 8 to the unaudited consolidated financial statements included in this Quarterly Report), as well as the requirement to remeasure non-employee stock options, as required by ASC Topic 718 and ASC Topic 505. We anticipate that stock-based compensation expense will continue to increase as we expand our infrastructure in order to generate more substantial revenue.

 

Other increases in the current year period over the prior year period include payroll-related expenses, legal and professional fees, investor relations expenses, taxes and licenses expense, insurance, rent, and travel, which increased by a total of $342,779, offset by decreases in advertising and marketing and other general and administrative expenses of $79,995. The increases are primarily due to the hiring of additional staff, as well as to the incurrence of certain costs associated with our becoming a public company in June 2017.

 

Consulting Expenses

 

Consulting expense was $47,181 and $19,000 for the three months ended March 31, 2018 and 2017, respectively. The increase in the current year period is due to an increase in required payments to various consultants for this period.

 

Research and Development Expenses

 

Research and development expense was $155,933 and $58,621 for the three months ended March 31, 2018 and 2017, respectively. The increase in the current year period is due to our engagement of a firm to develop bus and truck drivetrain prototypes for us.

 

Liquidity and Capital Resources

 

From our incorporation in 2012 until the completion of our offering of common stock under Regulation A in June 2017, we financed our operations and capital expenditures through the issuance of equity capital, convertible notes and notes payable. A significant portion of this funding was provided by affiliated stockholders, although we also raised significant equity capital in late 2015, and we raised the majority of our previously outstanding convertible notes in 2015 from non-affiliated third parties. On January 9, 2018, we completed a public offering of 3,666,667 units for net proceeds, after deducting commissions, expenses and fees of approximately $1.2 million, of approximately $9.8 million.

 

As of March 31, 2018, we had cash and cash equivalents of $8.2 million. We believe that our existing cash and cash equivalents will be sufficient to fund our operations for the next 12 months and beyond. However, we may not successfully execute our business plan, and if we do not, we may need additional capital to continue our operations. While we have generated minimal revenues to date and do not expect to be able to satisfy our cash requirements solely through product sales in the near future, we received purchase orders for six zero-emission electric school buses and two zero-emission electric drivetrains in the second half of 2017, and orders for an additional 11 zero-emission electric drivetrains in the first quarter of 2018. We recorded revenue of $425,000 in the fourth quarter of 2017 and $463,731 in the first quarter of 2018.

 

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The sale of additional equity securities in the future could result in additional dilution to our stockholders and those securities may have rights senior to those of our common stock. The incurrence of additional indebtedness in the future would result in increased debt service obligations and could result in operating and financial covenants that would restrict our operations. Such capital, if required, may not be available on terms that are favorable to us or at all. We are currently incurring operating deficits that are expected to continue for the foreseeable future, and as we begin to execute our marketing plan, we expect our operating deficit will continue to grow until we begin to generate a sufficient level of revenue from our sales and marketing efforts.

 

Debt

 

As of March 31, 2018, we have no debt, as we repaid the $2,149,000 secured notes payable outstanding as of December 31, 2017 in January 2018.

 

Regulation A Offering

 

On June 9, 2017, we completed an offering of common stock under Regulation A. We sold 2,852,275 shares of common stock for gross proceeds of $14,261,375, of which $1,711,365 was paid to the selling stockholders for 342,273 shares they sold in the offering.

 

Follow-On Public Offering

 

On January 9, 2018, we completed a public offering of 3,666,667 units for net proceeds, after deducting commissions, expenses, and fees of approximately $1.2 million, of approximately $9.8 million. Each unit sold in the offering consisted of one share of our common stock and a warrant to purchase 1.5 shares of our common stock at an exercise price of $4.50.

 

Options to Purchase Common Stock

 

As of March 31, 2018, we had granted options to purchase 30,077,306 shares of common stock, net of cancellations discussed below and in Note 8 to the unaudited consolidated financial statements included in this Quarterly Report. As of March 31, 2018, 9,682,721 shares of common stock were issuable upon the exercise of options vested at such date at an exercise price of $0.10 per share, and 1,215,055 shares of common stock were issuable upon the exercise of options vested as at such date at an exercise price of $10.49 per share. If all vested options to purchase common stock were exercised, we would receive proceeds of $13,714,196 and we would be required to issue 10,897,776 shares of common stock. There can be no assurance, however, that any such options will be exercised.

 

On March 6, 2018, Edward R. Monfort ceased serving as our Chief Technology Officer. Upon Mr. Monfort’s separation from service, our board of directors suspended Mr. Monfort’s outstanding options. Although such options remain outstanding, they were unexercisable as of March 31, 2018 and through the date of this Quarterly Report. As of March 31, 2018, outstanding options to purchase an aggregate of 15,150,000 shares of common stock are attributable to Mr. Monfort, as discussed in Note 8 to the unaudited consolidated financial statements included in this Quarterly Report.

 

In March 2018, we determined that certain non-employees, to whom we previously granted options, were no longer providing services for us. As a result, we canceled unvested options to purchase 297,694 shares of common stock, effective February 28, 2018. Because of this cancellation, and in accordance with GAAP, we reversed $423,308 of expense previously recorded with respect to these unvested options.

 

Credit Facilities

 

As of March 31, 2018, we did not have any conventional credit facilities or other access to bank credit. If we believe that making an acquisition is appropriate, or see that sales of product are more rapidly using working capital than anticipated, we may seek to obtain additional borrowing capacity under a credit facility to address these issues.

 

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Capital Expenditures

 

We do not have any contractual obligations for ongoing capital expenditures at this time. We do, however, purchase equipment necessary to conduct our operations on an as needed basis.

 

Cash Flows

 

The following table summarizes our cash flows from operating, investing, and financing activities for the three months ended March 31, 2018 and 2017.

 

   Three Months Ended
   March 31, 2018  March 31, 2017
Consolidated Statements of Cash Flow Data:      
Cash flows used in operating activities  $(1,974)  $(741)
Cash flows used in investing activities   (3)   (35)
Cash flows provided by (used in) financing activities   7,730    302 
Increase (decrease) in cash and cash equivalents  $5,753   $(474)

 

Operating Activities

 

Cash used in operating activities is primarily the result of our operating losses, reduced by the impact of the non-cash stock-based compensation amounts. These numbers are further impacted by adjustments for non-cash interest expense.

 

Net cash used in operating activities during the three months ended March 31, 2018 was $2.0 million, as a result of a net loss of $4.1 million, stock-based compensation of $3.0 million, other non-cash charges of $23,237, and changes in operating assets and liabilities that used $883,606 in cash. Other current assets increased by $955,992, accounts receivable increased by $463,731, accrued liabilities increased by $390,487, accounts payable increased by $145,653, other non-current liabilities decreased by $17,625, and other non-current assets decreased by $17,602.

 

Net cash used in operating activities during the three months ended March 31, 2017 was $740,877, as a result of a net loss of $1.6 million, stock-based compensation of $606,216, other non-cash charges of $85,820, and changes in operating assets and liabilities that provided $132,843 in cash.

 

We expect cash used in operating activities to fluctuate significantly in future periods as a result of a number of factors, some of which are outside of our control, including, among others: the success we achieve in generating revenue; the success we have in helping our customers obtain financing to subsidize their purchases of our products; our ability to efficiently develop our dealer and service network; the costs of batteries and other materials utilized to make our products; the extent to which we need to invest additional funds in research and development; and the amount of expense we incur to satisfy future warranty claims.

 

Investing Activities

 

Net cash used in investing activities during the three months ended March 31, 2018 was $3,260. This was due to the acquisition of property and equipment.

 

Net cash used in investing activities during the three months ended March 31, 2017 was $34,837. This was primarily due to the acquisition of property and equipment.

 

Financing Activities

 

Net cash provided by financing activities during the three months ended March 31, 2018 was $7.7 million. This is due to net proceeds of approximately $9.8 million received from the closing of our follow-on offering on January 9, 2018, offset by the $2.1 million repayment of notes payable principal and related accrued and unpaid interest.

 

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Net cash provided by financing activities during the three months ended March 31, 2017 was $302,451. This is due to notes payable proceeds of $500,000 and a $10,000 repayment of notes payable principal, offset by payments for costs related to our offering under Regulation A of $187,549.

 

Contractual Obligations

 

Except as set forth below, during the three months ended March 31, 2018, there were no material changes in our contractual obligations and commitments.

 

On March 6, 2018, Edward R. Monfort ceased serving as our Chief Technology Officer.

 

Off-Balance Sheet Arrangements

 

We did not have during the periods presented, and we do not currently have, any off-balance sheet arrangements, as defined in the rules and regulations of the SEC.

 

Critical Accounting Policies Judgments and Estimates

 

Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates.

 

We believe that the assumptions and estimates associated with the preparation of the financial statement information presented in this Quarterly Report are not significant because we have not generated any substantial revenue. Therefore, we have not had to make assumptions or estimates related to a reserve for bad debt expense. As to future warranty costs to be incurred, we recorded a warranty reserve against 2017 revenue and will continue to evaluate the provision for such expenses in the future. These two items will have significant potential impact on our consolidated financial statements in the future. We also have no significant current litigation on which we have to provide reserves or estimate accruals and our investment to date in property, plant and equipment has not been significant. We therefore have not had to rely on estimates related to impairment. We have not generated any taxable income to date, so have not had to make any decisions about future profitability that would impact recording income tax expense. Assuming we are able to generate future profits by executing our business plan, these areas, among others, will most likely be our critical accounting policies and estimates.

 

We recognize revenue from the sales of advanced zero-emission electric drivetrain systems for fleet vehicles and from contracting to provide engineering services. In May 2014, the FASB issued new accounting guidance, ASC Topic 606, “Revenue from Contracts with Customers”, to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The amendments in this guidance state an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. On January 1, 2018, we adopted ASC Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605. The adoption of ASC Topic 606 did not result in a cumulative impact on us as of January 1, 2018 and the application of ASC Topic 606 had no impact on our statement of operations for the three months ended March 31, 2018.

 

We have early-adopted ASU No. 2016-02, “Leases (Topic 842)”. The amendment requires companies to recognize leased assets and liabilities on the balance sheet and to disclose key information regarding leasing arrangements. This guidance is effective for annual periods, and interim periods within those annual periods, after December 15, 2018. Early application of this amendment is permitted for all entities. While we do not anticipate that, going forward, leases will be material to our balance sheet, we chose to early-adopt as of December 31, 2017 due to our entering into new leases during the year. These new leases are the only leases required to be included on our balance sheet under the new standard. Consequently, the adoption of the new lease standard did not have any impact to prior period information. Further, these leases are operating leases and, therefore, have no income statement impact resulting from the adoption of this standard.

 

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Contingencies

 

Certain conditions may exist as of the date the financial statements are issued which may result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management, in consultation with its legal counsel as appropriate, assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we, in consultation with legal counsel, evaluate the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

 

Stock-Based Compensation

 

We measure the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. The fair value of our common stock was estimated by management based on observations of the cash sales prices of its common shares. Awards granted to directors are treated on the same basis as awards granted to employees.

 

Fair Value Measurement

 

The carrying values of our financial instruments, including cash, notes receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. FASB ASC Topic 820, “Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

Level 1: Observable inputs such as quoted prices in active markets;

 

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

Level 3: Unobservable inputs for which there is little or no market data, and which require the reporting entity to develop its own assumptions.

 

We do not have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.

 

Jumpstart Our Business Startups Act of 2012 (“JOBS Act”)

 

We are an “emerging growth company” (“EGC”), as defined in the JOBS Act. The JOBS Act contains provisions that, among other things, reduce certain reporting requirements for EGCs. We have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards, and, therefore, will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. We have chosen to rely on the other exemptions and reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, as an EGC we are not required to, among other things, (i) being permitted to provide only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure, (ii) not being required to comply with the auditor attestation requirements in the assessment of our internal control over financial reporting, (iii) not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements, (iv) reduced disclosure obligations regarding executive compensation or (v) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

 

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We will retain our EGC status until the first to occur of: (i) the end of the fiscal year in which the fifth anniversary of the completion of our initial public offering occurs, (ii) the end of the fiscal year in which our annual revenues exceed $1 billion, (iii) the date on which we issue more than $1 billion in non-convertible debt during any three-year period or (iv) the date on which we qualify as a “large accelerated filer.”

 

Recent Accounting Pronouncements

 

Management has considered all recent accounting pronouncements issued, but not effective, and does not believe that they will have a significant impact on the Company’s financial statements.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

 

We are exposed to market risks in the ordinary course of our business. We do not currently face material market risks such as interest rate fluctuation risk and foreign currency exchange risk. Our cash and cash equivalents include cash in readily available checking and money market accounts. These investments are not dependent on interest rate fluctuations that may cause the principal amount of these investments to fluctuate, and we do not expect such fluctuation will have a material impact on our financial conditions. If we issue additional debt in the future, we will be subject to interest rate risk. The majority of our expenses are denominated in the U.S. dollar.

 

As we continue our commercialization efforts internationally, we may generate revenue and incur expenses denominated in currencies other than the U.S. dollar, a majority of which we expect to be denominated in Chinese Yuan. As a result, as operations of ADOMANI China expand in the future, our revenue may be significantly impacted by fluctuations in foreign currency exchange rates. We may face risks associated with the costs of raw materials, primarily batteries, as we go into production. To the extent these and other risks materialize, they could have a material effect on our operating results or financial condition. We currently anticipate that our international selling, marketing and administrative costs related to foreign sales will be largely denominated in the same foreign currency, which may mitigate our foreign currency exchange risk exposure.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer have concluded that our disclosure controls and procedures (a) were effective to ensure that information that we are required to disclose in reports that we file or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting that occurred during the three months ended March 31, 2018 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

Limitations on Effectiveness of Controls and Procedures

 

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, cannot provide absolute assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs. Similarly, an evaluation of controls cannot provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected.

 

20

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

We know of no material, existing or pending, legal proceedings against our Company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

 

ITEM 1A. RISK FACTORS

 

There were no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 12, 2018.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

A list of exhibits is set forth on the Exhibit Index immediately following the signature page of this Quarterly Report on Form 10-Q and is incorporated herein by reference.

 

 

 

21

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

 

 

ADOMANI, INC.

 

     
Date: May 10, 2018 By:  /s/ James L. Reynolds
   

James L. Reynolds

President and Chief Executive Officer

(Principal Executive Officer)

     
Date: May 10, 2018 By:  /s/ Michael K. Menerey
   

Michael K. Menerey

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

 

 

 

 

22

 

Exhibit Index

 

        Incorporated by Reference    
Exhibit Number   Exhibit Description   Form   File No.   Exhibit   Filing Date   Filed Herewith
                         
4.1   Form of Common Stock Purchase Warrant   8-K   001-38078   4.1   1/8/2018    
                         
4.2   Form of Placement Agent Warrant   8-K   001-38078   4.2   1/8/2018    
                         
10.1   Securities Purchase Agreement, dated January 5, 2018, by and among ADOMANI, Inc. and certain investors set forth therein   8-K   001-38078   10.1   1/8/2018    
                         
10.2   Form of Leak-Out Agreement, dated January 5, 2018   8-K   001-38078   10.2   1/8/2018    
                         
31.1   Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                   X
                         
31.2   Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                   X
                         
32.1#   18 U.S.C. Section 1350 Certification of Chief Executive Officer, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                   X
                         
32.2#   18 U.S.C. Section 1350 Certification of Chief Financial Officer, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                   X
                         
101.INS   XBRL Instance Document*                   X
                         
101.SCH   XBRL Taxonomy Extension Schema Document*                   X
                         
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document*                   X
                         
101.LAB   XBRL Taxonomy Extension Label Linkbase Document*                   X
                         
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document*                   X
                         
101.DEF   XBRL Taxonomy Extension Definitions Linkbase Document*                   X

 

#       The information in Exhibits 32.1 and 32.2 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act (including this report), unless the Registrant specifically incorporates the foregoing information into those documents by reference.

 

*       In accordance with Rule 402 of Regulation S-T, this interactive data file is deemed not filed or part of this Quarterly Report for purposes of Sections 11 or 12 of the Securities Act or Section 18 of the Exchange Act and otherwise is not subject to liability under these sections.

 

 

 

23

 

 

EX-31.1 2 exh_311.htm EXHIBIT 31.1

Exhibit 31.1

 

Certification Pursuant to

Rules 13a-14(a) and 15d-14(a) of the

Securities Exchange Act of 1934

 

I, James L. Reynolds, certify that:

 

1.                   I have reviewed this Quarterly Report on Form 10-Q of ADOMANI, Inc.;

 

2.                   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.                   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

(a)                 designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                 evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(c)                 disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.                   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                 All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 10, 2018

 

By:  /s/ James L. Reynolds  
  James L. Reynolds  
  Chief Executive Officer  
  (Principal Executive Officer)  

 

EX-31.2 3 exh_312.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION PURSUANT TO

RULE 13a-14(a) OR RULE 15d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

I, Michael K. Menerey, certify that:

 

1.                   I have reviewed this Quarterly Report on Form 10-Q of ADOMANI, Inc.;

 

2.                   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.                   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.                   The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

(a)                 designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)                 evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(c)                 disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.                   The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)                 All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)                 Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 10, 2018

 

By:  /s/ Michael K. Menerey  
  Michael K. Menerey  
  Chief Financial Officer  
  (Principal Financial Officer)  

 

 

 

EX-32.1 4 exh_321.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

 

In connection with the Quarterly Report of ADOMANI, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James L. Reynolds, Chief Executive Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

 

(i)                   the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

 

(ii)                 the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: May 10, 2018

 

By: /s/ James L. Reynolds  
Name:  James L. Reynolds  
Title: Chief Executive Officer  
  (Principal Executive Officer)  

 

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. This certification will not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. This certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference.

EX-32.2 5 exh_322.htm EXHIBIT 32.2

Exhibit 32.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

 

In connection with the Quarterly Report of ADOMANI, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael K. Menerey, Chief Financial Officer of the Company, hereby certify as of the date hereof, solely for purposes of Title 18, Chapter 63, Section 1350 of the United States Code, that to the best of my knowledge:

 

(i)                   the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

 

(ii)                 the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: May 10, 2018

 

By: /s/ Michael K. Menerey  
  Michael K. Menerey  
  Chief Financial Officer  
  (Principal Financial Officer)  

 

A signed original of this written statement required by 18 U.S.C. Section 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. This certification will not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. This certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates it by reference.

 

 

 

EX-101.INS 6 adom-20180331.xml XBRL INSTANCE FILE 25000 50000 349042 7299656 4.48 P4Y182D 0 5756664 4.47 1.5 P3Y317D P4Y189D 7000 3000 47000 19000 50000 0.95 76000 349042 P2Y 1090000 150000 500000 440000 25000 50000 25000 10000 0.09 500 1000 7600 10560 4730 8000 P30D 9800000 156000 59000 1200000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div></div> <div style="display: inline; font-weight: bold;">Stock Warrants &nbsp;</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company has issued warrants to purchase an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,556,323</div> shares of common stock, consisting of the following. The Company&#x2019;s stock warrant activity for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>is summarized as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; color: Red"></div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; 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font-style: italic; font-weight: inherit; font-style: normal;">Remaining</div></div></td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Shares</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; 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text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.47</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt">Forfeited</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,556,323</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.45</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.52</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Exercisable at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,299,656</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.48</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.50</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; color: Red"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the outstanding warrants have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> intrinsic value.</div></div> false --12-31 Q1 2018 2018-03-31 10-Q 0001563568 71737597 Yes Non-accelerated Filer Adomani, Inc. No No adom 176000 30000 464000 904000 514000 514753 32664 24427 58083000 45316000 2964000 2964000 1197000 1197000 3000000 606216 109000 12381000 5322000 11531000 4449000 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Basis of Presentation</div></div>&#x2014;The consolidated financial statements and related disclosures as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (&#x201c;SEC&#x201d;). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (&#x201c;GAAP&#x201d;) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with our audited financial statements for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> included in our Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017.&nbsp;</div>The results of operations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results to be expected for the full year.</div></div></div></div></div> 2446000 938000 8199000 464000 5753000 -474000 4.50 4.42 4.45 256667 7556323 1799659 7556323 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9.</div> Commitments</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Employment Agreements</div></div>&#x2014;We had previously entered into an employment agreement with our former Chief Technology Officer, Edward&nbsp;R. Monfort, with an effective date of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June&nbsp;</div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> The term of the employment agreement was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> years, with an annual base salary of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$120,000.</div> Additionally, we agreed to pay up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,000</div> per month for invoiced expenses relating to research and development to ELO, LLC, which is owned by Mr.&nbsp;Monfort, as well as up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,000</div> per month for services to another consultant selected by Mr. Monfort. Effective as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 6, 2018, </div>we terminated our employment agreement with Mr. Monfort.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Operating Leases</div></div>&#x2014;In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the Company signed a lease for office space in Los Altos, California, to serve as office space for its Northern California operations. The lease expired <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 28, 2018 </div>and the Company executed a new <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-month lease in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018. </div>The total amount due under the lease is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4,730</div> and the lease period is from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 1, 2018 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2018.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2017, </div>the Company signed a lease for storage space in Phoenix, Arizona to serve as a location to store vehicles and other equipment utilized for marketing and trade-show purposes. The lease is on a month-to-month basis and can be terminated by either party with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-days&#x2019; notice. The total amount due monthly is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$500.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2017, </div>the Company signed a lease for storage space in Stockton, California to serve as a location to store vehicles and other equipment utilized for marketing and trade-show purposes. The lease is on a month-to-month basis and can be terminated by either party with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-days&#x2019; notice. The total amount due monthly is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1,000.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> October 2017, </div>the Company signed a non-cancellable lease for its corporate office space in Corona, California, to serve as its corporate headquarters. The lease is for a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">65</div> months, terminating <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 28, 2023. </div>The base rent for the term of the lease is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$568,912.</div> The total amount due monthly is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,600</div> at commencement and will escalate to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,560</div> by its conclusion. Additionally, the lease includes <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> months in which <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> rent payment is due.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Other Agreements</div></div>&#x2014;In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the Company entered into a contract with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">THINKP3</div> to provide services with the goal of securing federal grant assistance for development of the Company&#x2019;s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emission and hybrid transportation solutions for school bus, commercial, government and utility fleets. The initial term of this contract was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 1, 2015 </div>through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 30, 2016. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 21, 2016, </div>the parties renewed the agreement through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 30, 2017. </div>On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 7, 2017, </div>the Company renewed the agreement through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 30, 2018. </div>Fees for these services are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,000</div> per month. The contract can be terminated by either party with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div>-days&#x2019; advance notice.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0pt 0">The following table summarizes our future minimum payments under contractual commitments, excluding debt, as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018:</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="19" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Payments due by period</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Total</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Less than <br /> one year</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">1 - 3 years</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">4 - 5 years</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">More than 5 <br /> years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%; font-size: 10pt; text-align: left">Operating lease obligations</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">572,409</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">101,457</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">234,984</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">235,968</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Employment contracts</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,090,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">440,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">500,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,662,409</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">541,457</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">734,984</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,968</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div></div> 0.00001 0.00001 2000000000 2000000000 71737597 68070930 71737597 68070930 1000 1000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Concentration of Credit Risk</div></div>&#x2014;The Company has credit risks related to cash and cash equivalents on deposit with a federally insured bank, as at times it exceeds the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000</div> maximum amount insured by the Federal Deposit Insurance Corporation.</div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 5.5pt 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Principles of Consolidation</div></div>&#x2014;The accompanying financial statements reflect the consolidation of the individual financial statements of ADOMANI, Inc., ADOMANI California, Inc., Adomani (Nantong) Automotive Technology Co. Ltd., School Bus Sales of California, Inc., and Zero Emission Truck and Bus Sales of Arizona, Inc. All significant intercompany accounts and transactions have been eliminated.</div></div></div></div></div> 1662409 385968 541457 734984 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="19" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Payments due by period</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Total</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Less than <br /> one year</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">1 - 3 years</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">4 - 5 years</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">More than 5 <br /> years</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%; font-size: 10pt; text-align: left">Operating lease obligations</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">572,409</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">101,457</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">234,984</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">235,968</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 8%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Employment contracts</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,090,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">440,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">500,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">150,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,662,409</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">541,457</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">734,984</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">385,968</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> 479000 726000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div> Debt</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 10, 2018, </div>upon the Company&#x2019;s receipt of the proceeds from its follow-on offering (described in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div>), the Company repaid all remaining principal and any accrued and unpaid interest outstanding under the Company&#x2019;s <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9%</div> secured notes, originally issued during <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015.</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">Details of notes payable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>are as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 27.5pt">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0 0pt 27.5pt"></div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">As of March 31,</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">As of December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-decoration: underline; text-align: left">Notes Payable</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; font-size: 10pt; text-align: left">Principal amount outstanding</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,149,000</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Cumulative discount for finance charges incurred</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(514,753</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Cumulative discount for warrant</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(349,042</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Cumulative discount for 9% notes</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(50,000</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Cumulative amortization of finance charges</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">514,753</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Cumulative amortization of warrant expense</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">349,042</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Cumulative amortization of 9% notes</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Subtotal of notes payable</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,149,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total of debt</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,149,000</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div></div> 0.02 2149000 7500000 0.09 514753 8237 2831 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8.</div> Stock-Based Compensation</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 6, 2018, </div>Edward R. Monfort ceased serving as the Company&#x2019;s Chief Technology Officer. Upon Mr. Monfort&#x2019;s separation from service, the Company&#x2019;s board of directors suspended Mr. Monfort&#x2019;s outstanding options. Although such options remain outstanding, these were unexercisable as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and through the date of this Quarterly Report. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>outstanding options to purchase an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,150,000</div> shares of common stock are attributable to Mr. Monfort.</div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2018, </div>the Company determined that certain non-employees, to whom it previously granted options, were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> longer providing services for the Company. As a result, the Company canceled unvested options to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">297,694</div> shares of common stock, effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 28, 2018. </div>Because of this cancellation, and in accordance with GAAP, the Company reversed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$423,308</div> of previously recorded expense with respect to these unvested options.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Stock option activity for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>is as follows:</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Weighted</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Weighted</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Number of</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Exercise</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Remaining</div></div></td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Shares</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Price</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Contractual Life (years)</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 59%; font-size: 10pt; padding-bottom: 2.25pt">Outstanding at December 31, 2017</td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="width: 10%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,375,000</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="width: 10%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.33</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="width: 12%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt">Granted</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt">Exercised</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">Canceled/Forfeited</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(297,694</div></td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td nowrap="nowrap" style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,077,306</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.34</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.7</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Exercisable at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,897,776</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.26</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Stock-based compensation expense was approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.0</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$606,216</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively, and is included in general and administrative expense in the accompanying unaudited consolidated statements of operations. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the Company expects to recognize <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25.1</div> million of stock-based compensation for the non-vested outstanding options over a weighted-average period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.9</div> years.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018, </div>the outstanding options have an intrinsic value of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$28.6</div> million.</div></div> -0.06 -0.02 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Net Loss Per Share</div></div>&#x2014;Basic net loss per share is calculated by dividing the Company&#x2019;s net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the Company&#x2019;s net loss applicable to common stockholders by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares of common stock outstanding is the basic weighted number of shares of common stock adjusted for any potentially dilutive debt or equity securities.</div></div></div></div></div> 25100000 P1Y328D <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Fair Value of Financial Instruments</div></div>&#x2014;The carrying values of our financial instruments, including cash, notes receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Financial Accounting Standards Board (&#x201c;FASB&#x201d;) Accounting Standards Codification (&#x201c;ASC&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820,</div> &#x201c;Fair Value Measurement&#x201d; defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 20pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1:</div> Observable inputs such as quoted prices in active markets;</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 20pt">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 20pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2:</div> Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 20pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3:</div> Unobservable inputs that are supported by little or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> market data and that require the reporting entity to develop its own assumptions.</div> <div style=" font-size: 10pt; text-indent: -33pt; margin: 0pt 0 0pt 41.8pt">&nbsp;</div><div style=" font-size: 10pt; text-indent: -33pt; margin: 0pt 0 0pt 41.8pt"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.</div></div></div></div></div> 1000 -15000 3917000 1297000 -15000 -4074000 -1564000 3000 2000 146000 168000 464000 390000 -31000 956000 7000 -18000 -3000 -18000 5000 215000 5000 96000 210000 225000 P300D P5Y150D 1351000 2982000 12381000 5322000 1080000 2693000 0 7000000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div> Notes Receivable</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 29, 2017, </div>the Company loaned <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$500,000</div> to an unaffiliated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party with engineering expertise in the electric bus technology industry, with whom the Company <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>seek an alliance at some future date, in order to provide it with working capital. The stated interest rate is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9%</div> per annum, with interest payments due monthly beginning <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 31, 2017. </div>The note is secured by the assets of the borrower and was scheduled to mature on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2018, </div>the parties agreed to extend the maturity date of the note to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>The note, as amended, is subject to an extension fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> due <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> later than the maturity date.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company loaned an additional <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$500,000</div> to another unaffiliated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emissions technology industry in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2016. </div>This note is subject to monthly interest of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,000</div> and was originally scheduled to mature on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017. </div>In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018, </div>the parties agreed to extend the maturity of the note to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 30, 2018, </div>and in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 2018, </div>the parties agreed to further extend the maturity date of the note until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018. </div>The note, as amended, is subject to monthly interest of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$10,000</div> and an extension fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> due <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> later than the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>maturity date. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> extension fee is in lieu of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> extension fee required by the prior <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018 </div>amendment to the note (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>).</div></div> 2149000 2149000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> Organization and Operations</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; color: #1F497D">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">ADOMANI, Inc. (&#x201c;we&#x201d;, &#x201c;us&#x201d;, &#x201c;our&#x201d; or the &#x201c;Company&#x201d;) is a provider of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emission electric and hybrid vehicles and replacement drivetrains that is focused on reducing the total cost of vehicle ownership. The Company&#x2019;s drivetrain systems are designed to help fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance. The Company&#x2019;s designs and causes to be designed advanced <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emission electric and hybrid drivetrain systems for integration in new school buses and medium to heavy-duty commercial fleet vehicles.<div style="display: inline; color: #1F497D">&nbsp;</div></div></div> 7730000 302000 -3000 -35000 -1974000 -741000 -4077000 -1566000 -4077000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt">Recent Accounting Pronouncements</div></div>&#x2014;Management has considered all recent accounting pronouncements issued, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> effective, and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe that they will have a significant impact on the Company&#x2019;s financial statements.</div></div> 61000 -189000 1000000 1000000 2149000 120000 4120000 1375000 -4135000 -1375000 568912 572409 101457 235968 234984 1658000 778000 368000 386000 271000 289000 66000 26000 1121000 188000 500000 500000 3000 35000 0.00001 0.00001 100000000 100000000 0 0 0 0 11000000 500000 400000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div> Property and Equipment, Net</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0">Components of property and equipment, net, consist of the following as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017:</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0; color: Red; text-indent: 1in"></div> <div style=" font-size: 10pt; margin: 0pt 0; color: Red; text-indent: 1in"></div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center"><div style="display: inline; font-weight: bold;">March 31,</div></td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center"><div style="display: inline; font-weight: bold;">December 31,</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">2018</div></td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">2017</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; font-size: 10pt; text-align: left">Furniture and fixtures</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,799</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,540</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,638</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,638</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Computers</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53,704</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53,704</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Vehicles</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Test/Demo vehicles</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">407,612</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">407,612</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt">Total property and equipment</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">514,753</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">511,494</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt">Less accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(32,664</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(24,427</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net property and equipment</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">482,089</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">487,067</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0; color: Red; text-indent: 1in"></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">Depreciation expense was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$8,237</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2,831</div> for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> respectively.</div></div> 41799 38540 11638 11638 53704 53704 407612 407612 514753 511494 482089 487067 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center"><div style="display: inline; font-weight: bold;">March 31,</div></td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center"><div style="display: inline; font-weight: bold;">December 31,</div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">2018</div></td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-weight: bold;">2017</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; font-size: 10pt; text-align: left">Furniture and fixtures</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41,799</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">38,540</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Leasehold improvements</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,638</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,638</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt">Computers</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53,704</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">53,704</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">Vehicles</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Test/Demo vehicles</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">407,612</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">407,612</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt">Total property and equipment</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">514,753</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">511,494</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; text-indent: 10pt">Less accumulated depreciation</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(32,664</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(24,427</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.25pt">Net property and equipment</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">482,089</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">487,067</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> 2149000 10000 -47054000 -42977000 464000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revenue Recognition</div></div>&#x2014;The Company recognizes revenue from the sales of advanced <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emission electric drivetrain systems for fleet vehicles and from contracting to provide engineering services. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued new accounting guidance, ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> &#x201c;Revenue from Contracts with Customers&#x201d;, to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The amendments in this guidance state an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized.</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018, </div>the Company adopted ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> using the modified retrospective method applied to those contracts which were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> completed as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018. </div>Results for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>are presented under ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> while prior period amounts are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> adjusted and continue to be reported in accordance with the Company&#x2019;s historic accounting under ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605.</div></div> <div style=" font-size: 10pt; margin: 0; text-align: justify">&nbsp;</div> <div style=" margin: 0; text-align: justify">The adoption of ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in a cumulative <div style="display: inline; font-size: 10pt">impact on the Company as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>and the application of ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impact on its statement of operations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018</div></div>.</div></div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">As of March 31,</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center">As of December 31,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2017</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; font-weight: bold; text-decoration: underline; text-align: left">Notes Payable</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; font-size: 10pt; text-align: left">Principal amount outstanding</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 14%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,149,000</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Cumulative discount for finance charges incurred</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(514,753</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Cumulative discount for warrant</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(349,042</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Cumulative discount for 9% notes</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(50,000</div></td> <td style="font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Cumulative amortization of finance charges</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">514,753</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Cumulative amortization of warrant expense</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">349,042</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Cumulative amortization of 9% notes</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Subtotal of notes payable</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,149,000</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.25pt">Total of debt</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,149,000</div></td> <td style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Weighted</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Weighted</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Number of</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Exercise</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Remaining</div></div></td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Shares</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Price</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="white-space: nowrap; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Contractual Life (years)</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 59%; font-size: 10pt; padding-bottom: 2.25pt">Outstanding at December 31, 2017</td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="width: 10%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,375,000</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="width: 10%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.33</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="width: 12%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt">Granted</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt">Exercised</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">Canceled/Forfeited</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(297,694</div></td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">)</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td nowrap="nowrap" style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30,077,306</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.34</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.7</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Exercisable at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,897,776</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.26</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.0</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Weighted</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Weighted</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center">Average</td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Number of</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Exercise</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Remaining</div></div></td> </tr> <tr style="vertical-align: bottom"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Shares</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Price</div></div></td> <td nowrap="nowrap" style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" nowrap="nowrap" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Contractual Life (years)</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="width: 59%; font-size: 10pt; padding-bottom: 2.25pt">Outstanding at December 31, 2017</td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="width: 10%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,799,659</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="width: 10%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.42</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="width: 1%; font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="width: 12%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.87</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt">Granted</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,756,664</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.47</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt">Forfeited</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Outstanding at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,556,323</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.45</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.52</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: right">&nbsp;</td> <td nowrap="nowrap" style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">Exercisable at March 31, 2018</td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,299,656</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">$</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.48</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> <td nowrap="nowrap" style="font-size: 10pt; padding-bottom: 2.25pt">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.50</div></td> <td nowrap="nowrap" style="border-bottom: Black 2.25pt double; font-size: 10pt; text-align: left"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">&nbsp;</div></td> </tr> </table></div> 2964000 606000 10897776 1.26 297694 297694 28600000 15150000 30375000 30077306 1.33 1.34 P4Y P4Y P3Y255D 68070930 71737597 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div> Summary of Significant Accounting Policies</div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Basis of Presentation</div></div>&#x2014;The consolidated financial statements and related disclosures as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div> are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (&#x201c;SEC&#x201d;). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (&#x201c;GAAP&#x201d;) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with our audited financial statements for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> included in our Annual Report on Form <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-K for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2017.&nbsp;</div>The results of operations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018 </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> necessarily indicative of the results to be expected for the full year.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 5.5pt 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Principles of Consolidation</div></div>&#x2014;The accompanying financial statements reflect the consolidation of the individual financial statements of ADOMANI, Inc., ADOMANI California, Inc., Adomani (Nantong) Automotive Technology Co. Ltd., School Bus Sales of California, Inc., and Zero Emission Truck and Bus Sales of Arizona, Inc. All significant intercompany accounts and transactions have been eliminated.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 5.5pt 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of Estimates</div></div>&#x2014;The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Fair Value of Financial Instruments</div></div>&#x2014;The carrying values of our financial instruments, including cash, notes receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Financial Accounting Standards Board (&#x201c;FASB&#x201d;) Accounting Standards Codification (&#x201c;ASC&#x201d;) <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">820,</div> &#x201c;Fair Value Measurement&#x201d; defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div>-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 20pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1:</div> Observable inputs such as quoted prices in active markets;</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 20pt">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 20pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2:</div> Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0; text-indent: 20pt">Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3:</div> Unobservable inputs that are supported by little or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> market data and that require the reporting entity to develop its own assumptions.</div> <div style=" font-size: 10pt; text-indent: -33pt; margin: 0pt 0 0pt 41.8pt">&nbsp;</div><div style=" font-size: 10pt; text-indent: -33pt; margin: 0pt 0 0pt 41.8pt"></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div></div> have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Revenue Recognition</div></div>&#x2014;The Company recognizes revenue from the sales of advanced <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emission electric drivetrain systems for fleet vehicles and from contracting to provide engineering services. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued new accounting guidance, ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> &#x201c;Revenue from Contracts with Customers&#x201d;, to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The amendments in this guidance state an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized.</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></div> <div style=" font-size: 10pt; margin: 0; text-align: justify">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018, </div>the Company adopted ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> using the modified retrospective method applied to those contracts which were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> completed as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018. </div>Results for reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>are presented under ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606,</div> while prior period amounts are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> adjusted and continue to be reported in accordance with the Company&#x2019;s historic accounting under ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">605.</div></div> <div style=" font-size: 10pt; margin: 0; text-align: justify">&nbsp;</div> <div style=" margin: 0; text-align: justify">The adoption of ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> result in a cumulative <div style="display: inline; font-size: 10pt">impact on the Company as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 1, 2018 </div>and the application of ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div> had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impact on its statement of operations for the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018</div></div>.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Net Loss Per Share</div></div>&#x2014;Basic net loss per share is calculated by dividing the Company&#x2019;s net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the Company&#x2019;s net loss applicable to common stockholders by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares of common stock outstanding is the basic weighted number of shares of common stock adjusted for any potentially dilutive debt or equity securities.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Concentration of Credit Risk</div></div>&#x2014;The Company has credit risks related to cash and cash equivalents on deposit with a federally insured bank, as at times it exceeds the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000</div> maximum amount insured by the Federal Deposit Insurance Corporation.</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Recent Accounting Pronouncements</div></div>&#x2014;Management has considered all recent accounting pronouncements issued, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> effective, and does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe that they will have a significant impact on the Company&#x2019;s financial statements.</div></div> 3666667 3666667 11000000 11000000 11000000 423308 11030000 2340000 1000 45316000 -42977000 1000 58083000 -47054000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div> Common Stock</div></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 354.2pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 9, 2018, </div>the Company consummated the closing of a follow-on offering of units, each consisting of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of common stock and a warrant to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.5</div> shares of common stock at an exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.50.</div> The Company sold an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,666,667</div> units for aggregate gross proceeds of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$11.0</div> million. Net proceeds received after deducting commissions, expenses and fees of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.2</div> million amounted to approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$9.8</div> million. Under the terms of the underwriting agreement executed in connection with the follow-on offering, the Company issued to Boustead Securities, LLC and to Roth Capital Partners, LLC warrants to purchase an aggregate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">256,667</div> shares of common stock. The warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">256,667</div> shares of common stock were valued using the Black-Scholes method, resulting in a fair market value of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$598,737.</div> The assumptions used in the valuation of the warrants included the term of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years, the exercise price of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.75</div> per share, volatility of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">92.20%</div> and a risk-free interest rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.13%.</div> The fair value of the warrants was recorded as offering costs and netted against additional paid-in capital during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2018.</div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10.</div> Subsequent Events</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"></div> <div style=" font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Effective <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2, 2018, </div>the Company secured a line-of-credit from Morgan Stanley Private Bank, National Association (&#x201c;Morgan Stanley&#x201d;). Borrowings under the line of credit bear interest at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">30</div> day LIBOR plus <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.0%.</div> There is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> maturity date for the line, but Morgan Stanley <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>at any time, in its sole discretion and without cause, demand the Company immediately repay any and all outstanding obligations in whole or in part. The line is secured by the assets maintained by the Company in Morgan Stanley accounts, which were approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7.5</div> million at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2, 2018, </div>and borrowings under the line <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> exceed <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">95%</div> of such assets, subject to a maximum of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7</div> million. Such borrowing threshold, however, is subject to change at Morgan Stanley&#x2019;s discretion and depends upon the holdings in the Company&#x2019;s account, the maturity dates of the securities in the account and the credit quality of the underlying insurers. On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 3, 2018, </div>the Company drew down <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$400,000</div> on the line of credit.</div> <div style=" font-size: 10pt; margin: 0">&nbsp;</div> <div style=" margin: 0; text-align: justify">By mutual consent, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 25, 2018, </div>the Company agreed to extend the maturity date of the note issued to the unaffiliated <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> party in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">zero</div>-emissions technology industry until <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 (</div>see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>). In exchange for extending the maturity date, the borrower agreed to pay the Company an extension fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> due <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> later than the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2018 </div>maturity date. <div style="display: inline; font-size: 10pt">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$50,000</div> extension fee is in lieu of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$25,000</div> extension fee required by a prior amendment to the note in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2018.&nbsp;</div></div></div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; text-align: justify; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Use of Estimates</div></div>&#x2014;The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</div></div></div></div></div> 598737 5 3.75 92.2 2.13 71370930 63121402 xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares 0001563568 adom:ChiefTechnologyOfficerMember 2016-06-01 2016-06-30 0001563568 adom:NoteReceivableIssuedInDecember2016Member 2016-12-01 2016-12-31 0001563568 2017-01-01 2017-03-31 0001563568 adom:ConversionOfDebtMember 2017-01-01 2017-03-31 0001563568 2017-01-01 2017-12-31 0001563568 adom:NoteReceivableIssuedInDecember2016Member 2017-01-01 2017-12-31 0001563568 adom:NoteReceivableIssuedInJune2017Member 2017-06-29 2017-06-29 0001563568 2018-01-01 2018-03-31 0001563568 adom:THINKP3Member 2018-01-01 2018-03-31 0001563568 adom:ConversionOfDebtMember 2018-01-01 2018-03-31 0001563568 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001563568 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001563568 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001563568 us-gaap:WarrantMember 2018-01-01 2018-03-31 0001563568 adom:WarrantsIssuedToPurchasersOfCommonStockMember adom:FollowOnOfferingMember 2018-01-09 2018-01-09 0001563568 adom:FollowOnOfferingMember 2018-01-09 2018-01-09 0001563568 adom:NoteReceivableIssuedInDecember2016Member 2018-02-01 2018-02-28 0001563568 adom:NoteReceivableIssuedInJune2017Member 2018-02-01 2018-02-28 0001563568 adom:CertainNonemployeesMember 2018-03-01 2018-03-31 0001563568 adom:NoteReceivableIssuedInDecember2016Member us-gaap:SubsequentEventMember 2018-04-25 2018-04-25 0001563568 adom:MorganStanleyMember us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-05-02 2018-05-02 0001563568 adom:MorganStanleyMember us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember 2018-05-03 2018-05-03 0001563568 us-gaap:SecuredDebtMember 2015-12-31 0001563568 adom:CommitmentsToEloLlcMember adom:ChiefTechnologyOfficerMember 2016-06-30 0001563568 adom:ConsultantSelectedByCTOMember 2016-06-30 0001563568 2016-12-31 0001563568 2017-03-31 0001563568 adom:NoteReceivableIssuedInJune2017Member 2017-06-29 0001563568 2017-12-31 0001563568 us-gaap:ConvertibleDebtMember 2017-12-31 0001563568 us-gaap:SecuredDebtMember 2017-12-31 0001563568 us-gaap:ComputerEquipmentMember 2017-12-31 0001563568 us-gaap:FurnitureAndFixturesMember 2017-12-31 0001563568 us-gaap:LeaseholdImprovementsMember 2017-12-31 0001563568 adom:TestDemoVehiclesMember 2017-12-31 0001563568 us-gaap:VehiclesMember 2017-12-31 0001563568 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001563568 us-gaap:CommonStockMember 2017-12-31 0001563568 us-gaap:RetainedEarningsMember 2017-12-31 0001563568 adom:WarrantsIssuedToPurchasersOfCommonStockMember adom:FollowOnOfferingMember 2018-01-09 0001563568 adom:WarrantsIssuedToUnderwritersMember us-gaap:MeasurementInputExercisePriceMember adom:FollowOnOfferingMember 2018-01-09 0001563568 adom:WarrantsIssuedToUnderwritersMember us-gaap:MeasurementInputExpectedTermMember adom:FollowOnOfferingMember 2018-01-09 0001563568 adom:WarrantsIssuedToUnderwritersMember us-gaap:MeasurementInputPriceVolatilityMember adom:FollowOnOfferingMember 2018-01-09 0001563568 adom:WarrantsIssuedToUnderwritersMember us-gaap:MeasurementInputRiskFreeInterestRateMember adom:FollowOnOfferingMember 2018-01-09 0001563568 adom:WarrantsIssuedToUnderwritersMember adom:FollowOnOfferingMember 2018-01-09 0001563568 adom:OfficeSpaceInLosAltosCaliforniaMember 2018-02-28 0001563568 2018-03-31 0001563568 us-gaap:FairValueMeasurementsRecurringMember 2018-03-31 0001563568 adom:CorporateOfficeInCoronaCaliforniaMember 2018-03-31 0001563568 adom:StorageSpaceInPhoenixArizonaMember 2018-03-31 0001563568 adom:StorageSpaceInStocktonCaliforniaMember 2018-03-31 0001563568 us-gaap:ConvertibleDebtMember 2018-03-31 0001563568 us-gaap:SecuredDebtMember 2018-03-31 0001563568 us-gaap:ComputerEquipmentMember 2018-03-31 0001563568 us-gaap:FurnitureAndFixturesMember 2018-03-31 0001563568 us-gaap:LeaseholdImprovementsMember 2018-03-31 0001563568 adom:TestDemoVehiclesMember 2018-03-31 0001563568 us-gaap:VehiclesMember 2018-03-31 0001563568 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001563568 us-gaap:CommonStockMember 2018-03-31 0001563568 us-gaap:RetainedEarningsMember 2018-03-31 0001563568 adom:MrMonfortMember 2018-03-31 0001563568 adom:MorganStanleyMember us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember 2018-05-02 0001563568 2018-05-10 0001563568 adom:CorporateOfficeInCoronaCaliforniaMember us-gaap:ScenarioForecastMember 2023-02-28 EX-101.SCH 7 adom-20180331.xsd XBRL SCHEMA FILE 000 - 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Entity [Domain] Legal Entity [Axis] Statement [Table] Scenario [Axis] Statement of Financial Position [Abstract] Scenario, Unspecified [Domain] us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts Offering costs netted against proceeds from common stock issued for cash Operating lease obligations, more than 5 years Operating lease obligations Operating Leases, Future Minimum Payments Due, Total Operating lease obligations, 3 - 5 years Statement of Cash Flows [Abstract] Operating lease obligations, 1 - 3 years Entity Common Stock, Shares Outstanding (in shares) Statement of Stockholders' Equity [Abstract] Operating lease obligations, less than one year Income Statement [Abstract] us-gaap_IncreaseDecreaseInOtherCurrentAssets Other current assets Proceeds from issuance of debt, net of issuance costs us-gaap_IncreaseDecreaseInOtherNoncurrentAssets Other non-current assets Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] Trading Symbol Nature of Operations [Text Block] us-gaap_GainLossOnDispositionOfAssets Gain on disposal of property and equipment us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised Exercised (in shares) us-gaap_TableTextBlock Notes Tables us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity Line of Credit Facility, Maximum Borrowing Capacity us-gaap_StockIssuedDuringPeriodValueShareBasedCompensationForfeited Stock Issued During Period, Value, Share-based Compensation, Forfeited Other Commitments [Axis] Other Commitments [Domain] Cash flows from financing activities: Granted (in shares) us-gaap_WarrantsAndRightsOutstandingMeasurementInput Warrants and Rights Outstanding, Measurement Input us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period Canceled/Forfeited (in shares) Other non-current liabilities adom_OtherCommitmentsTerminationNotice Other Commitments, Termination Notice The period in which either party must give notice to termination the agreement. Line of Credit Facility, Lender [Domain] adom_NotesReceivableStatedInterestRate Notes Receivable, Stated Interest Rate Contractual interest rate for funds receivable, under the receivable agreement. Common stock issued (in shares) Stock Issued During Period, Shares, New Issues Lender Name [Axis] us-gaap_LiabilitiesAndStockholdersEquity Total liabilities and stockholders' equity Common stock issued for cash Stock Issued During Period, Value, New Issues adom_ClassOfWarrantOrRightIssuedDuringPeriodPerCommonShareIssued Class of Warrant or Right, Issued During Period per Common Share Issued The number of warrants or rights issued for each share of common stock issued during period. Accumulated deficit Warrants Issued to Purchasers of Common Stock [Member] Warrants that were issued to purchasers of common stock. adom_ProceedsFromIssuanceOrSaleOfEquityNetOfIssuanceCosts Proceeds from Issuance or Sale of Equity, Net of Issuance Costs The cash inflow from the issuance of common stock, preferred stock, treasury stock, stock options, and other types of equity, net of issuance costs. Debt Disclosure [Text Block] adom_StockIssuanceCostsIncurred Stock Issuance Costs Incurred Stock issuance costs incurred as part of an equity offering. us-gaap_InterestExpense Interest expense, net Follow-on Offering [Member] An equity offering that occurs after the initial public offering (IPO). Measurement Input, Price Volatility [Member] Changes in assets and liabilities: Warrants Issued to Underwriters [Member] Warrants that were issued to underwriters of an equity offering. us-gaap_StockholdersEquity Total stockholders' equity Balance Balance Measurement Input, Risk Free Interest Rate [Member] us-gaap_DisclosureTextBlockAbstract Notes to Financial Statements adom_NoteReceivableExtensionFee Note Receivable, Extension Fee The fee paid by the borrowing of a note receivable to extend the maturity date of the note. Subsequent Event [Member] Measurement Input, Expected Term [Member] Class of Stock [Axis] Subsequent Event Type [Axis] Measurement Input, Exercise Price [Member] Subsequent Event Type [Domain] Subsequent Events [Text Block] adom_ClassOfWarrantOrRightIntrinsicValue Class of Warrant or Right, Intrinsic Value Intrinsic value of warrant or right outstanding. Measurement Input Type [Axis] Measurement Input Type [Domain] EX-101.PRE 11 adom-20180331_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT v3.8.0.1
Document And Entity Information - shares
3 Months Ended
Mar. 31, 2018
May 10, 2018
Document Information [Line Items]    
Entity Registrant Name Adomani, Inc.  
Entity Central Index Key 0001563568  
Trading Symbol adom  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Entity Common Stock, Shares Outstanding (in shares)   71,737,597
Document Type 10-Q  
Document Period End Date Mar. 31, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q1  
Amendment Flag false  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 8,199,000 $ 2,446,000
Accounts receivable 464,000
Notes receivable, net 1,000,000 1,000,000
Inventory, net 210,000 225,000
Other current assets 1,658,000 778,000
Total current assets 11,531,000 4,449,000
Property and equipment, net 482,089 487,067
Other non-current assets 368,000 386,000
Total assets 12,381,000 5,322,000
Current liabilities:    
Accounts payable 176,000 30,000
Accrued liabilities 904,000 514,000
Notes payable, net 2,149,000
Total current liabilities 1,080,000 2,693,000
Long-term liabilities    
Other non-current liabilities 271,000 289,000
Total liabilities 1,351,000 2,982,000
Commitments and contingencies
Stockholders' equity:    
Preferred stock, 100,000,000 authorized $0.00001 par value none issued and outstanding, respectively
Common stock, 2,000,000,000 authorized $0.00001 par value, 71,737,597 and 68,070,930 issued and outstanding, respectively 1,000 1,000
Additional paid-in capital 58,083,000 45,316,000
Accumulated deficit (47,054,000) (42,977,000)
Total stockholders' equity 11,030,000 2,340,000
Total liabilities and stockholders' equity $ 12,381,000 $ 5,322,000
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares
Mar. 31, 2018
Dec. 31, 2017
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, shares authorized (in shares) 2,000,000,000 2,000,000,000
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares issued (in shares) 71,737,597 68,070,930
Common stock, shares outstanding (in shares) 71,737,597 68,070,930
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Sales $ 464
Cost of sales 479
Gross profit (loss) (15)
Operating expenses:    
General and administrative 3,917 1,297
Consulting 47 19
Research and development 156 59
Total operating expenses, net 4,120 1,375
Loss from operations (4,135) (1,375)
Other income (expense):    
Interest expense, net (5) (215)
Other income (expense) 66 26
Total other income (expense) 61 (189)
Loss before income taxes (4,074) (1,564)
Income tax expense (3) (2)
Net loss $ (4,077) $ (1,566)
Net loss per share to common stockholders:    
Basic and diluted (in dollars per share) $ (0.06) $ (0.02)
Weighted shares used in the computation of net loss per share:    
Basic and diluted (in shares) 71,370,930 63,121,402
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Total
Balance (in shares) at Dec. 31, 2017 68,070,930      
Balance at Dec. 31, 2017 $ 1 $ 45,316 $ (42,977) $ 2,340
Common stock issued (in shares) 3,666,667      
Common stock issued for cash   11,000   11,000
Offering costs netted against proceeds from common stock issued for cash   (1,197)   (1,197)
Stock based compensation   2,964   2,964
Net loss   (4,077) (4,077)
Balance (in shares) at Mar. 31, 2018 71,737,597      
Balance at Mar. 31, 2018 $ 1 $ 58,083 $ (47,054) $ 11,030
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.8.0.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities:    
Net loss $ (4,077,000) $ (1,566,000)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 8,237 2,831
Accretion of discount on note receivable (25,000)
Amortization of debt discount 109,000
Stock based compensation expense 2,964,000 606,000
Loss on write-down of property and equipment, net 15,000
Gain on disposal of property and equipment (1,000)
Changes in assets and liabilities:    
Accounts receivable (464,000)
Other current assets (956,000) (7,000)
Other non-current assets 18,000 3,000
Accounts payable 146,000 168,000
Accrued liabilities 390,000 (31,000)
Other non-current liabilities (18,000)
Net cash used in operating activities (1,974,000) (741,000)
Cash flows from investing activities:    
Purchase of property and equipment, net (3,000) (35,000)
Net cash used in investing activities (3,000) (35,000)
Cash flows from financing activities:    
Proceeds from issuance of common stock 11,000,000
Proceeds from issuance of debt, net of issuance costs 500,000
Principal repayments of debt (2,149,000) (10,000)
Payments for deferred offering costs (1,121,000) (188,000)
Net cash provided by financing activities 7,730,000 302,000
Net change in cash and cash equivalents 5,753,000 (474,000)
Cash and cash equivalents at the beginning of the period 2,446,000 938,000
Cash and cash equivalents at the end of the period 8,199,000 464,000
Supplemental cash flow disclosures:    
Cash paid for interest expense 5,000 96,000
Cash paid for income taxes
Non-cash transactions:    
Deferred offering costs reclassified to equity 76,000
Conversion of Debt [Member]    
Non-cash transactions:    
Common stock issued due to debt conversion $ 726,000
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 1 - Organization and Operations
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Nature of Operations [Text Block]
1.
Organization and Operations
 
ADOMANI, Inc. (“we”, “us”, “our” or the “Company”) is a provider of
zero
-emission electric and hybrid vehicles and replacement drivetrains that is focused on reducing the total cost of vehicle ownership. The Company’s drivetrain systems are designed to help fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price cost instability and local, state and federal environmental regulatory compliance. The Company’s designs and causes to be designed advanced
zero
-emission electric and hybrid drivetrain systems for integration in new school buses and medium to heavy-duty commercial fleet vehicles.
 
XML 19 R8.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Significant Accounting Policies [Text Block]
2.
Summary of Significant Accounting Policies
 
Basis of Presentation
—The consolidated financial statements and related disclosures as of
March 31, 2018
and for the
three
months ended
March 31, 2018
and
2017
are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with our audited financial statements for the years ended
December 31, 2017
and
2016
included in our Annual Report on Form
10
-K for the fiscal year ended
December 31, 2017. 
The results of operations for the
three
months ended
March 31, 2018
are
not
necessarily indicative of the results to be expected for the full year.
 
Principles of Consolidation
—The accompanying financial statements reflect the consolidation of the individual financial statements of ADOMANI, Inc., ADOMANI California, Inc., Adomani (Nantong) Automotive Technology Co. Ltd., School Bus Sales of California, Inc., and Zero Emission Truck and Bus Sales of Arizona, Inc. All significant intercompany accounts and transactions have been eliminated.
 
Use of Estimates
—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
 
Fair Value of Financial Instruments
—The carrying values of our financial instruments, including cash, notes receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
No.
820,
“Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a
three
-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
Level
1:
Observable inputs such as quoted prices in active markets;
 
Level
2:
Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
 
Level
3:
Unobservable inputs that are supported by little or
no
market data and that require the reporting entity to develop its own assumptions.
 
The Company does
not
have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.
 
Revenue Recognition
—The Company recognizes revenue from the sales of advanced
zero
-emission electric drivetrain systems for fleet vehicles and from contracting to provide engineering services. In
May 2014,
the FASB issued new accounting guidance, ASC Topic
606,
“Revenue from Contracts with Customers”, to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The amendments in this guidance state an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized.
 
On
January 1, 2018,
the Company adopted ASC Topic
606
using the modified retrospective method applied to those contracts which were
not
completed as of
January 1, 2018.
Results for reporting periods beginning after
January 1, 2018
are presented under ASC Topic
606,
while prior period amounts are
not
adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC Topic
605.
 
The adoption of ASC Topic
606
did
not
result in a cumulative
impact on the Company as of
January 1, 2018
and the application of ASC Topic
606
had
no
impact on its statement of operations for the
three
months ended
March 31, 2018
.
 
Net Loss Per Share
—Basic net loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares of common stock outstanding is the basic weighted number of shares of common stock adjusted for any potentially dilutive debt or equity securities.
 
Concentration of Credit Risk
—The Company has credit risks related to cash and cash equivalents on deposit with a federally insured bank, as at times it exceeds the
$250,000
maximum amount insured by the Federal Deposit Insurance Corporation.
 
Recent Accounting Pronouncements
—Management has considered all recent accounting pronouncements issued, but
not
effective, and does
not
believe that they will have a significant impact on the Company’s financial statements.
XML 20 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment, Net
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Property, Plant and Equipment Disclosure [Text Block]
3.
Property and Equipment, Net
 
Components of property and equipment, net, consist of the following as of
March 31, 2018
and
December 31, 2017:
 
   
March 31,
 
December 31,
   
2018
 
2017
Furniture and fixtures   $
41,799
    $
38,540
 
Leasehold improvements    
11,638
     
11,638
 
Computers    
53,704
     
53,704
 
Vehicles    
-
     
-
 
Test/Demo vehicles    
407,612
     
407,612
 
Total property and equipment    
514,753
     
511,494
 
Less accumulated depreciation    
(32,664
)    
(24,427
)
Net property and equipment   $
482,089
    $
487,067
 
 
Depreciation expense was
$8,237
and
$2,831
for the
three
months ended
March 31, 2018
and
2017,
respectively.
XML 21 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 4 - Notes Receivable
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
4.
Notes Receivable
 
On
June 29, 2017,
the Company loaned
$500,000
to an unaffiliated
third
party with engineering expertise in the electric bus technology industry, with whom the Company
may
seek an alliance at some future date, in order to provide it with working capital. The stated interest rate is
9%
per annum, with interest payments due monthly beginning
July 31, 2017.
The note is secured by the assets of the borrower and was scheduled to mature on
December 31, 2017.
In
February 2018,
the parties agreed to extend the maturity date of the note to
June 30, 2018.
The note, as amended, is subject to an extension fee of
$25,000
due
no
later than the maturity date.
 
The Company loaned an additional
$500,000
to another unaffiliated
third
party in the
zero
-emissions technology industry in
December 2016.
This note is subject to monthly interest of
$10,000
and was originally scheduled to mature on
December 31, 2017.
In
January 2018,
the parties agreed to extend the maturity of the note to
April 30, 2018,
and in
April 2018,
the parties agreed to further extend the maturity date of the note until
June 30, 2018.
The note, as amended, is subject to monthly interest of
$10,000
and an extension fee of
$50,000
due
no
later than the
June 30, 2018
maturity date. The
$50,000
extension fee is in lieu of the
$25,000
extension fee required by the prior
January 2018
amendment to the note (see Note
10
).
XML 22 R11.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Debt
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Debt Disclosure [Text Block]
5.
Debt
 
On
January 10, 2018,
upon the Company’s receipt of the proceeds from its follow-on offering (described in Note
6
), the Company repaid all remaining principal and any accrued and unpaid interest outstanding under the Company’s
9%
secured notes, originally issued during
2015.
 
Details of notes payable at
March 31, 2018
and
December 31, 2017
are as follows:
 
    As of March 31,   As of December 31,
    2018   2017
Notes Payable                
Principal amount outstanding    
-
     
2,149,000
 
Cumulative discount for finance charges incurred    
-
     
(514,753
)
Cumulative discount for warrant    
-
     
(349,042
)
Cumulative discount for 9% notes    
-
     
(50,000
)
Cumulative amortization of finance charges    
-
     
514,753
 
Cumulative amortization of warrant expense    
-
     
349,042
 
Cumulative amortization of 9% notes    
-
     
50,000
 
Subtotal of notes payable    
-
     
2,149,000
 
Total of debt   $
-
    $
2,149,000
 
XML 23 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Common Stock
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
6.
Common Stock
 
On
January 9, 2018,
the Company consummated the closing of a follow-on offering of units, each consisting of
one
share of common stock and a warrant to purchase
1.5
shares of common stock at an exercise price of
$4.50.
The Company sold an aggregate of
3,666,667
units for aggregate gross proceeds of approximately
$11.0
million. Net proceeds received after deducting commissions, expenses and fees of approximately
$1.2
million amounted to approximately
$9.8
million. Under the terms of the underwriting agreement executed in connection with the follow-on offering, the Company issued to Boustead Securities, LLC and to Roth Capital Partners, LLC warrants to purchase an aggregate of
256,667
shares of common stock. The warrants to purchase
256,667
shares of common stock were valued using the Black-Scholes method, resulting in a fair market value of
$598,737.
The assumptions used in the valuation of the warrants included the term of
five
years, the exercise price of
$3.75
per share, volatility of
92.20%
and a risk-free interest rate of
2.13%.
The fair value of the warrants was recorded as offering costs and netted against additional paid-in capital during the
three
months ended
March 31, 2018.
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stock Warrants
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Warrants [Text Block]
7.
Stock Warrants  
 
As of
March 31, 2018,
the Company has issued warrants to purchase an aggregate of
7,556,323
shares of common stock, consisting of the following. The Company’s stock warrant activity for the
three
months ended
March 31, 2018
is summarized as follows:
 
        Weighted   Weighted
        Average   Average
   
Number of
 
Exercise
 
Remaining
   
Shares
 
Price
 
Contractual Life (years)
Outstanding at December 31, 2017    
1,799,659
 
  $
4.42
 
   
3.87
 
Granted    
5,756,664
 
  $
4.47
 
   
 
 
Forfeited                        
Outstanding at March 31, 2018    
7,556,323
 
  $
4.45
 
   
4.52
 
                         
Exercisable at March 31, 2018    
7,299,656
 
  $
4.48
 
   
4.50
 
 
As of
March 31, 2018,
the outstanding warrants have
no
intrinsic value.
XML 25 R14.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stock-based Compensation
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
8.
Stock-Based Compensation
 
On
March 6, 2018,
Edward R. Monfort ceased serving as the Company’s Chief Technology Officer. Upon Mr. Monfort’s separation from service, the Company’s board of directors suspended Mr. Monfort’s outstanding options. Although such options remain outstanding, these were unexercisable as of
March 31, 2018
and through the date of this Quarterly Report. As of
March 31, 2018,
outstanding options to purchase an aggregate of
15,150,000
shares of common stock are attributable to Mr. Monfort.
 
In
March 2018,
the Company determined that certain non-employees, to whom it previously granted options, were
no
longer providing services for the Company. As a result, the Company canceled unvested options to purchase
297,694
shares of common stock, effective
February 28, 2018.
Because of this cancellation, and in accordance with GAAP, the Company reversed
$423,308
of previously recorded expense with respect to these unvested options.
 
Stock option activity for the
three
months ended
March 31, 2018
is as follows:
 
        Weighted   Weighted
        Average   Average
   
Number of
 
Exercise
 
Remaining
   
Shares
 
Price
 
Contractual Life (years)
Outstanding at December 31, 2017    
30,375,000
 
  $
1.33
 
   
4.0
 
Granted    
-
 
   
 
 
   
 
 
Exercised                        
Canceled/Forfeited    
(297,694
)
   
 
 
   
 
 
Outstanding at March 31, 2018    
30,077,306
 
  $
1.34
 
   
3.7
 
                         
Exercisable at March 31, 2018    
10,897,776
 
  $
1.26
 
   
4.0
 
 
Stock-based compensation expense was approximately
$3.0
million and
$606,216
for the
three
months ended
March 31, 2018
and
2017,
respectively, and is included in general and administrative expense in the accompanying unaudited consolidated statements of operations. As of
March 31, 2018,
the Company expects to recognize
$25.1
million of stock-based compensation for the non-vested outstanding options over a weighted-average period of
1.9
years.
 
As of
March 31, 2018,
the outstanding options have an intrinsic value of approximately
$28.6
million.
XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Commitments
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Commitments Disclosure [Text Block]
9.
Commitments
 
Employment Agreements
—We had previously entered into an employment agreement with our former Chief Technology Officer, Edward R. Monfort, with an effective date of
June 
1,
2016.
The term of the employment agreement was
two
years, with an annual base salary of
$120,000.
Additionally, we agreed to pay up to
$7,000
per month for invoiced expenses relating to research and development to ELO, LLC, which is owned by Mr. Monfort, as well as up to
$3,000
per month for services to another consultant selected by Mr. Monfort. Effective as of
March 6, 2018,
we terminated our employment agreement with Mr. Monfort.
 
Operating Leases
—In
2016,
the Company signed a lease for office space in Los Altos, California, to serve as office space for its Northern California operations. The lease expired
February 28, 2018
and the Company executed a new
10
-month lease in
March 2018.
The total amount due under the lease is
$4,730
and the lease period is from
March 1, 2018
through
December 31, 2018.
 
In
April 2017,
the Company signed a lease for storage space in Phoenix, Arizona to serve as a location to store vehicles and other equipment utilized for marketing and trade-show purposes. The lease is on a month-to-month basis and can be terminated by either party with
30
-days’ notice. The total amount due monthly is
$500.
 
In
February 2017,
the Company signed a lease for storage space in Stockton, California to serve as a location to store vehicles and other equipment utilized for marketing and trade-show purposes. The lease is on a month-to-month basis and can be terminated by either party with
30
-days’ notice. The total amount due monthly is
$1,000.
 
In
October 2017,
the Company signed a non-cancellable lease for its corporate office space in Corona, California, to serve as its corporate headquarters. The lease is for a period of
65
months, terminating
February 28, 2023.
The base rent for the term of the lease is
$568,912.
The total amount due monthly is
$7,600
at commencement and will escalate to
$10,560
by its conclusion. Additionally, the lease includes
five
months in which
no
rent payment is due.
 
Other Agreements
—In
2015,
the Company entered into a contract with
THINKP3
to provide services with the goal of securing federal grant assistance for development of the Company’s
zero
-emission and hybrid transportation solutions for school bus, commercial, government and utility fleets. The initial term of this contract was
December 1, 2015
through
November 30, 2016.
On
November 21, 2016,
the parties renewed the agreement through
November 30, 2017.
On
November 7, 2017,
the Company renewed the agreement through
November 30, 2018.
Fees for these services are
$8,000
per month. The contract can be terminated by either party with
30
-days’ advance notice.
 
The following table summarizes our future minimum payments under contractual commitments, excluding debt, as of
March 31, 2018:
 
    Payments due by period
    Total   Less than
one year
  1 - 3 years   4 - 5 years   More than 5
years
Operating lease obligations    
572,409
     
101,457
     
234,984
     
235,968
     
-
 
Employment contracts    
1,090,000
     
440,000
     
500,000
     
150,000
     
-
 
Total    
1,662,409
     
541,457
     
734,984
     
385,968
     
-
 
XML 27 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 10 - Subsequent Events
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Subsequent Events [Text Block]
10.
Subsequent Events
 
Effective
May 2, 2018,
the Company secured a line-of-credit from Morgan Stanley Private Bank, National Association (“Morgan Stanley”). Borrowings under the line of credit bear interest at
30
day LIBOR plus
2.0%.
There is
no
maturity date for the line, but Morgan Stanley
may
at any time, in its sole discretion and without cause, demand the Company immediately repay any and all outstanding obligations in whole or in part. The line is secured by the assets maintained by the Company in Morgan Stanley accounts, which were approximately
$7.5
million at
May 2, 2018,
and borrowings under the line
may
not
exceed
95%
of such assets, subject to a maximum of
$7
million. Such borrowing threshold, however, is subject to change at Morgan Stanley’s discretion and depends upon the holdings in the Company’s account, the maturity dates of the securities in the account and the credit quality of the underlying insurers. On
May 3, 2018,
the Company drew down
$400,000
on the line of credit.
 
By mutual consent, on
April 25, 2018,
the Company agreed to extend the maturity date of the note issued to the unaffiliated
third
party in the
zero
-emissions technology industry until
June 30, 2018 (
see Note
4
). In exchange for extending the maturity date, the borrower agreed to pay the Company an extension fee of
$50,000
due
no
later than the
June 30, 2018
maturity date.
The
$50,000
extension fee is in lieu of the
$25,000
extension fee required by a prior amendment to the note in
January 2018. 
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
—The consolidated financial statements and related disclosures as of
March 31, 2018
and for the
three
months ended
March 31, 2018
and
2017
are unaudited, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In our opinion, these unaudited financial statements include all adjustments (consisting only of normal recurring adjustments) necessary for the fair statement of the results for the interim periods. These unaudited financial statements should be read in conjunction with our audited financial statements for the years ended
December 31, 2017
and
2016
included in our Annual Report on Form
10
-K for the fiscal year ended
December 31, 2017. 
The results of operations for the
three
months ended
March 31, 2018
are
not
necessarily indicative of the results to be expected for the full year.
Consolidation, Policy [Policy Text Block]
Principles of Consolidation
—The accompanying financial statements reflect the consolidation of the individual financial statements of ADOMANI, Inc., ADOMANI California, Inc., Adomani (Nantong) Automotive Technology Co. Ltd., School Bus Sales of California, Inc., and Zero Emission Truck and Bus Sales of Arizona, Inc. All significant intercompany accounts and transactions have been eliminated.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates
—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair Value of Financial Instruments
—The carrying values of our financial instruments, including cash, notes receivable and accounts payable approximate their fair value due to the short-term nature of these financial instruments. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
No.
820,
“Fair Value Measurement” defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a
three
-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
Level
1:
Observable inputs such as quoted prices in active markets;
 
Level
2:
Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
 
Level
3:
Unobservable inputs that are supported by little or
no
market data and that require the reporting entity to develop its own assumptions.
 
The Company does
not
have any assets or liabilities that are required to be measured and recorded at fair value on a recurring basis.
Revenue Recognition, Policy [Policy Text Block]
Revenue Recognition
—The Company recognizes revenue from the sales of advanced
zero
-emission electric drivetrain systems for fleet vehicles and from contracting to provide engineering services. In
May 2014,
the FASB issued new accounting guidance, ASC Topic
606,
“Revenue from Contracts with Customers”, to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The amendments in this guidance state an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This new guidance requires enhanced disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized.
 
On
January 1, 2018,
the Company adopted ASC Topic
606
using the modified retrospective method applied to those contracts which were
not
completed as of
January 1, 2018.
Results for reporting periods beginning after
January 1, 2018
are presented under ASC Topic
606,
while prior period amounts are
not
adjusted and continue to be reported in accordance with the Company’s historic accounting under ASC Topic
605.
 
The adoption of ASC Topic
606
did
not
result in a cumulative
impact on the Company as of
January 1, 2018
and the application of ASC Topic
606
had
no
impact on its statement of operations for the
three
months ended
March 31, 2018
.
Earnings Per Share, Policy [Policy Text Block]
Net Loss Per Share
—Basic net loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the Company’s net loss applicable to common stockholders by the diluted weighted average number of shares of common stock outstanding during the period. The diluted weighted average number of shares of common stock outstanding is the basic weighted number of shares of common stock adjusted for any potentially dilutive debt or equity securities.
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentration of Credit Risk
—The Company has credit risks related to cash and cash equivalents on deposit with a federally insured bank, as at times it exceeds the
$250,000
maximum amount insured by the Federal Deposit Insurance Corporation.
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
—Management has considered all recent accounting pronouncements issued, but
not
effective, and does
not
believe that they will have a significant impact on the Company’s financial statements.
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment, Net (Tables)
3 Months Ended
Mar. 31, 2018
Notes Tables  
Property, Plant and Equipment [Table Text Block]
   
March 31,
 
December 31,
   
2018
 
2017
Furniture and fixtures   $
41,799
    $
38,540
 
Leasehold improvements    
11,638
     
11,638
 
Computers    
53,704
     
53,704
 
Vehicles    
-
     
-
 
Test/Demo vehicles    
407,612
     
407,612
 
Total property and equipment    
514,753
     
511,494
 
Less accumulated depreciation    
(32,664
)    
(24,427
)
Net property and equipment   $
482,089
    $
487,067
 
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Debt (Tables)
3 Months Ended
Mar. 31, 2018
Notes Tables  
Schedule of Long-term Debt Instruments [Table Text Block]
    As of March 31,   As of December 31,
    2018   2017
Notes Payable                
Principal amount outstanding    
-
     
2,149,000
 
Cumulative discount for finance charges incurred    
-
     
(514,753
)
Cumulative discount for warrant    
-
     
(349,042
)
Cumulative discount for 9% notes    
-
     
(50,000
)
Cumulative amortization of finance charges    
-
     
514,753
 
Cumulative amortization of warrant expense    
-
     
349,042
 
Cumulative amortization of 9% notes    
-
     
50,000
 
Subtotal of notes payable    
-
     
2,149,000
 
Total of debt   $
-
    $
2,149,000
 
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stock Warrants (Tables)
3 Months Ended
Mar. 31, 2018
Warrant [Member]  
Notes Tables  
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]
        Weighted   Weighted
        Average   Average
   
Number of
 
Exercise
 
Remaining
   
Shares
 
Price
 
Contractual Life (years)
Outstanding at December 31, 2017    
1,799,659
 
  $
4.42
 
   
3.87
 
Granted    
5,756,664
 
  $
4.47
 
   
 
 
Forfeited                        
Outstanding at March 31, 2018    
7,556,323
 
  $
4.45
 
   
4.52
 
                         
Exercisable at March 31, 2018    
7,299,656
 
  $
4.48
 
   
4.50
 
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stock-based Compensation (Tables)
3 Months Ended
Mar. 31, 2018
Notes Tables  
Share-based Compensation, Stock Options, Activity [Table Text Block]
        Weighted   Weighted
        Average   Average
   
Number of
 
Exercise
 
Remaining
   
Shares
 
Price
 
Contractual Life (years)
Outstanding at December 31, 2017    
30,375,000
 
  $
1.33
 
   
4.0
 
Granted    
-
 
   
 
 
   
 
 
Exercised                        
Canceled/Forfeited    
(297,694
)
   
 
 
   
 
 
Outstanding at March 31, 2018    
30,077,306
 
  $
1.34
 
   
3.7
 
                         
Exercisable at March 31, 2018    
10,897,776
 
  $
1.26
 
   
4.0
 
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Commitments (Tables)
3 Months Ended
Mar. 31, 2018
Notes Tables  
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]
    Payments due by period
    Total   Less than
one year
  1 - 3 years   4 - 5 years   More than 5
years
Operating lease obligations    
572,409
     
101,457
     
234,984
     
235,968
     
-
 
Employment contracts    
1,090,000
     
440,000
     
500,000
     
150,000
     
-
 
Total    
1,662,409
     
541,457
     
734,984
     
385,968
     
-
 
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Summary of Significant Accounting Policies (Details Textual) - Fair Value, Measurements, Recurring [Member]
$ in Thousands
Mar. 31, 2018
USD ($)
Assets, Fair Value Disclosure $ 0
Financial and Nonfinancial Liabilities, Fair Value Disclosure $ 0
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment, Net (Details Textual) - USD ($)
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Depreciation, Total $ 8,237 $ 2,831
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 3 - Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Property and equipment, gross $ 514,753 $ 511,494
Less accumulated depreciation (32,664) (24,427)
Property and equipment, net 482,089 487,067
Furniture and Fixtures [Member]    
Property and equipment, gross 41,799 38,540
Leasehold Improvements [Member]    
Property and equipment, gross 11,638 11,638
Computer Equipment [Member]    
Property and equipment, gross 53,704 53,704
Vehicles [Member]    
Property and equipment, gross
Test/Demo Vehicles [Member]    
Property and equipment, gross $ 407,612 $ 407,612
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 4 - Notes Receivable (Details Textual) - USD ($)
1 Months Ended 12 Months Ended
Apr. 25, 2018
Jun. 29, 2017
Feb. 28, 2018
Dec. 31, 2016
Dec. 31, 2017
Note Receivable Issued in June 2017 [Member]          
Payments to Acquire Notes Receivable   $ 500,000      
Notes Receivable, Stated Interest Rate   9.00%      
Note Receivable, Extension Fee     $ 25,000    
Note Receivable Issued in December 2016 [Member]          
Payments to Acquire Notes Receivable       $ 500,000  
Note Receivable, Extension Fee     $ 25,000    
Notes Receivable, Periodic Payment, Interest         $ 10,000
Note Receivable Issued in December 2016 [Member] | Subsequent Event [Member]          
Note Receivable, Extension Fee $ 50,000        
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Debt (Details Textual)
Dec. 31, 2015
Secured Debt [Member]  
Debt Instrument, Interest Rate, Stated Percentage 9.00%
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 5 - Debt - Long-term Debt (Details) - USD ($)
Mar. 31, 2018
Dec. 31, 2017
Total of debt $ 2,149,000
Convertible Debt [Member]    
Principal amount outstanding 2,149,000
Secured Debt [Member]    
Cumulative discount for finance charges incurred (514,753)
Cumulative discount for warrant (349,042)
Cumulative discount for 9% notes (50,000)
Cumulative amortization of finance charges 514,753
Cumulative amortization of warrant expense 349,042
Cumulative amortization of 9% notes 50,000
Total of debt $ 2,149,000
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 6 - Common Stock (Details Textual)
3 Months Ended
Jan. 09, 2018
USD ($)
$ / shares
shares
Mar. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
$ / shares
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares   $ 4.45 $ 4.42
Stock Issued During Period, Value, New Issues   $ 11,000,000  
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares   7,556,323  
Follow-on Offering [Member]      
Stock Issued During Period, Shares, New Issues | shares 3,666,667    
Stock Issued During Period, Value, New Issues $ 11,000,000    
Stock Issuance Costs Incurred 1,200,000    
Proceeds from Issuance or Sale of Equity, Net of Issuance Costs $ 9,800,000    
Warrants Issued to Purchasers of Common Stock [Member] | Follow-on Offering [Member]      
Class of Warrant or Right, Issued During Period per Common Share Issued | shares 1.5    
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares $ 4.50    
Warrants Issued to Underwriters [Member] | Follow-on Offering [Member]      
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares 256,667    
Warrants and Rights Outstanding $ 598,737    
Warrants Issued to Underwriters [Member] | Follow-on Offering [Member] | Measurement Input, Expected Term [Member]      
Warrants and Rights Outstanding, Measurement Input 5    
Warrants Issued to Underwriters [Member] | Follow-on Offering [Member] | Measurement Input, Exercise Price [Member]      
Warrants and Rights Outstanding, Measurement Input 3.75    
Warrants Issued to Underwriters [Member] | Follow-on Offering [Member] | Measurement Input, Price Volatility [Member]      
Warrants and Rights Outstanding, Measurement Input 92.2    
Warrants Issued to Underwriters [Member] | Follow-on Offering [Member] | Measurement Input, Risk Free Interest Rate [Member]      
Warrants and Rights Outstanding, Measurement Input 2.13    
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stock Warrants (Details Textual)
$ in Thousands
Mar. 31, 2018
USD ($)
shares
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares 7,556,323
Class of Warrant or Right, Intrinsic Value | $ $ 0
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 7 - Stock Warrants - Warrant Activity (Details) - $ / shares
3 Months Ended 12 Months Ended
Mar. 31, 2018
Dec. 31, 2017
Outstanding at December 31, 2017 (in shares) 1,799,659  
Outstanding at December 31, 2017, weighted average exercise price (in dollars per share) $ 4.42  
Outstanding, weighted average remaining contractual life (Year) 4 years 189 days 3 years 317 days
Granted (in shares) 5,756,664  
Granted, weighted average exercise price (in dollars per share) $ 4.47  
Forfeited (in shares)  
Forfeited, weighted average exercise price (in dollars per share)  
Outstanding at March 31, 2018 (in shares) 7,556,323 1,799,659
Outstanding at March 31, 2018, weighted average exercise price (in dollars per share) $ 4.45 $ 4.42
Exercisable (in shares) 7,299,656  
Exercisable, weighted average exercise price (in dollars per share) $ 4.48  
Exercisable, weighted average remaining contractual life (Year) 4 years 182 days  
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stock-based Compensation (Details Textual) - USD ($)
1 Months Ended 3 Months Ended
Mar. 31, 2018
Mar. 31, 2018
Mar. 31, 2017
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance 30,077,306 30,077,306   30,375,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period   297,694    
Allocated Share-based Compensation Expense, Total   $ 3,000,000 $ 606,216  
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total $ 25,100,000 $ 25,100,000    
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition   1 year 328 days    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 28,600,000 $ 28,600,000    
Mr. Monfort [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance 15,150,000 15,150,000    
Certain Non-Employees [Member]        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period 297,694      
Stock Issued During Period, Value, Share-based Compensation, Forfeited $ 423,308      
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 8 - Stock-based Compensation - Stock Option Activity (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2018
$ / shares
shares
Dec. 31, 2017
$ / shares
shares
Outstanding at December 31, 2017 (in shares) | shares 30,375,000  
Outstanding at December 31, 2017, weighted average exercise price (in dollars per share) | $ / shares $ 1.33  
Outstanding, weighted average remaining life (Year) 3 years 255 days 4 years
Granted (in shares) | shares  
Granted, weighted average exercise price (in dollars per share) | $ / shares  
Exercised (in shares) | shares  
Exercised, weighted average exercise price (in dollars per share) | $ / shares  
Canceled/Forfeited (in shares) | shares (297,694)  
Canceled/Forfeited, weighted average exercise price (in dollars per share) | $ / shares  
Outstanding at March 31, 2018 (in shares) | shares 30,077,306 30,375,000
Outstanding at March 31, 2018, weighted average exercise price (in dollars per share) | $ / shares $ 1.34 $ 1.33
Exercisable (in shares) | shares 10,897,776  
Exercisable, weighted average exercise price (in dollars per share) | $ / shares $ 1.26  
Exercisable, weighted average remaining life (Year) 4 years  
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Commitments (Details Textual) - USD ($)
1 Months Ended 3 Months Ended
Jun. 30, 2016
Mar. 31, 2018
Feb. 28, 2023
Feb. 28, 2018
Operating Leases, Future Minimum Payments Due, Total   $ 572,409    
THINKP3 [Member]        
Other Commitments, Service Fees Per Month   $ 8,000    
Other Commitments, Termination Notice   30 days    
Office Space in Los Altos, California [Member]        
Lessee, Operating Lease, Term of Contract       300 days
Operating Lease, Rent Expense, Annual Amount       $ 4,730
Storage Space in Phoenix, Arizona [Member]        
Operating Lease, Monthly Payment   $ 500    
Storage Space in Stockton, California [Member]        
Operating Lease, Monthly Payment   $ 1,000    
Corporate Office in Corona, California [Member]        
Lessee, Operating Lease, Term of Contract   5 years 150 days    
Operating Lease, Monthly Payment   $ 7,600    
Operating Leases, Future Minimum Payments Due, Total   $ 568,912    
Corporate Office in Corona, California [Member] | Scenario, Forecast [Member]        
Operating Lease, Monthly Payment     $ 10,560  
Chief Technology Officer [Member]        
Employment Agreement, Term of Employment 2 years      
Salary and Wage, Officer, Excluding Cost of Good and Service Sold $ 120,000      
Chief Technology Officer [Member] | Commitments to ELO, LLC [Member]        
Commitments to Research and Developement, Monthly Expense 7,000      
Consultant Selected By CTO [Member]        
Commitments to Services, Monthly Expense $ 3,000      
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 9 - Commitments - Future Minimum Payments Under Contractual Commitments (Details)
Mar. 31, 2018
USD ($)
Operating lease obligations $ 572,409
Operating lease obligations, less than one year 101,457
Operating lease obligations, 1 - 3 years 234,984
Operating lease obligations, 3 - 5 years 235,968
Operating lease obligations, more than 5 years
Employment contracts 1,090,000
Employment contracts, less than one year 440,000
Employment contracts, 1 - 3 years 500,000
Employment contracts, 3 - 5 years 150,000
Employment contracts, more than 5 years
Total 1,662,409
Total, less than one year 541,457
Total, 1 - 3 years 734,984
Total, 3 - 5 years 385,968
Total, more than 5 years
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 10 - Subsequent Events (Details Textual) - USD ($)
1 Months Ended
May 03, 2018
May 02, 2018
Apr. 25, 2018
Feb. 28, 2018
Note Receivable Issued in December 2016 [Member]        
Note Receivable, Extension Fee       $ 25,000
Subsequent Event [Member] | Note Receivable Issued in December 2016 [Member]        
Note Receivable, Extension Fee     $ 50,000  
Morgan Stanley [Member] | Line of Credit [Member] | Subsequent Event [Member]        
Debt Instrument, Collateral Amount   $ 7,500,000    
Debt Instrument, Maximum Borrowing Capacity Threshold, Percent of Assets   95.00%    
Line of Credit Facility, Maximum Borrowing Capacity   $ 7,000,000    
Proceeds from Lines of Credit, Total $ 400,000      
Morgan Stanley [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member]        
Debt Instrument, Basis Spread on Variable Rate   2.00%    
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