Quarterly report pursuant to Section 13 or 15(d)

Going Concern and Management Plans

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Going Concern and Management Plans
9 Months Ended
Sep. 30, 2019
Going Concern and Management Plans  
Note 2 - Going Concern and Management Plans

During the nine months ended September 30, 2019, the Company had not generated any revenues, had a net loss of approximately $3,899,000 and had used cash in operations of approximately $1,724,000. As of September 30, 2019, the Company had a working capital deficiency of approximately $5,915,000 and an accumulated deficit of approximately $20,570,000. Subsequent to September 30, 2019 and as more fully described in Note 9, Subsequent Events, the Company received proceeds of $500,000 from the issuance of a convertible note and aggregate proceeds of $329,505 through the sale of 43,934 shares of Series A Convertible Preferred Stock at $7.50 per share.

 

The Company is currently funding its operations on a month-to-month basis. While there can be no assurance that it will be successful, the Company is in active negotiations to raise additional capital. The Company s primary source of operating funds since inception has been equity and debt financings. Management s plans include continued efforts to raise additional capital through debt and equity financings. There is no assurance that these funds will be sufficient to enable the Company to fully complete its development activities or attain profitable operations. If the Company is unable to obtain such additional financing on a timely basis or, notwithstanding any request the Company may make, if the Company s debt holders do not agree to convert their notes into equity or extend the maturity dates of their notes, the Company may have to curtail its development, marketing and promotional activities, which would have a material adverse effect on the Company s business, financial condition and results of operations, and ultimately the Company could be forced to discontinue its operations and liquidate.

 

The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.