Annual report pursuant to Section 13 and 15(d)

Liquidity and Management Plans

v3.3.1.900
Liquidity and Management Plans
12 Months Ended
Dec. 31, 2015
Liquidity And Management Plan Disclosure [Abstract]  
Liquidity And Management Plan Disclosure [Text Block]
Note 2 – Liquidity and Management Plans
 
During the year ended December 31, 2015, the Company has recorded revenue of $2,500,000. The Company incurred a net loss of $27,561,702, $45,603,110 and $5,521,081 for the years ended December 31, 2015, 2014 and 2013, respectively. Net cash used in operating activities was $20,005,734, $15,606,423 and $3,430,978 for the years ended December 31, 2015, 2014 and 2013, respectively. Since inception, the Company has met its liquidity requirements principally through the private placement of convertible notes, the sale of its common stock in a registered initial public offering, the sale of its common stock to a strategic investor, the issuance of its common stock to the Company’s landlord to reduce its monthly base rent obligation and pay for certain tenant improvements, the sale of common stock in a December 2014 secondary offering, the sale of common stock pursuant to a shelf registration and payments received under product development projects entered into with a customer.
 
As of December 31, 2015, the Company had cash on hand of $29,872,564. In April 2014, the Company completed its IPO of 4,600,000 shares of common stock through which the Company raised net proceeds of approximately $24.8 million. In connection with the completion of the IPO, the Company’s outstanding convertible notes and interest accrued thereon were converted into 1,833,336 and 96,792 shares, respectively, of common stock, thus extinguishing the debt associated with the notes. On April 4, 2014, the Company issued 210,527 shares of common stock to a strategic investor upon the receipt of net proceeds of $900,000 ($300,000 received on March 27, 2014, $700,000 received on April 4, 2014 less $100,000 to MDB Capital Group as a commission). In December 2014, the Company completed a secondary offering of 3,285,714 shares of common stock through which the Company raised net proceeds of approximately $21.0 million. On April 24, 2015, the Company filed a “shelf” registration statement on Form S-3, under which the Company may from time to time, sell any combination of debt or equity securities up to an aggregate of $75,000,000. In November 2015, the Company consummated an offering under the shelf registration of 3,000,005 shares of common stock through which the Company raised net proceeds of $19,048,456. The Company expects that cash on hand as of December 31, 2015, together with anticipated revenues, will be sufficient to fund the Company’s operations into the second quarter of 2017.
 
Research and development of new technologies is, by its nature, unpredictable.  Although the Company will undertake development efforts with commercially reasonable diligence, there can be no assurance that its available resources including the net proceeds from the Company’s IPO, secondary offering, issuance lender shelf registration, and strategic investor financing will be sufficient to enable it to develop and obtain regulatory approval of its technology to the extent needed to create future revenues sufficient to sustain its operations.  The Company may choose to pursue additional financing, depending upon the market conditions, which could include follow-on equity offerings, debt financing, co-development agreements or other alternatives. Should the Company choose to pursue additional financing, there is no assurance that the Company would be able to do so on terms that it would find acceptable.