Quarterly report pursuant to Section 13 or 15(d)

Liquidity and Management Plans

v3.5.0.2
Liquidity and Management Plans
9 Months Ended
Sep. 30, 2016
Liquidity And Management Plan Disclosure [Abstract]  
Liquidity And Management Plan Disclosure [Text Block]
Note 2 – Liquidity and Management Plans
 
During the three months and nine months ended September 30, 2016, the Company recorded revenue of $1,003,973 and $1,322,155, respectively, and during the three and nine months ended September 30, 2015, the Company recorded revenue of $2,075,000 and $2,500,000, respectively. During the three months and nine months ended September 30, 2016, the Company recorded a net loss of $10,125,063 and $31,206,160, respectively, and during the three and nine months ended September 30, 2015, the Company recorded a net loss of $5,605,661 and $18,677,522, respectively. Net cash used in operating activities was $24,439,565 and $15,460,067 for the nine months ended September 30, 2016 and 2015, respectively. The Company is currently meeting its liquidity requirements principally through the November 2015 sale of common stock pursuant to a shelf registration, an August 2016 sale of shares to an investor through a private placement and payments received under product development projects entered into with a tier one customer.
 
As of September 30, 2016, the Company had cash on hand of $24,956,255. 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. In addition, on August 9, 2016, the Company sold 1,618,123 shares of its common stock, and issued a warrant to purchase up to 1,618,123 shares of common stock at an exercise price of $23.00 per share, to Ascend Legend Master Fund, Ltd. in a private placement, raising net proceeds of $19,890,644. The Company expects that cash on hand as of September 30, 2016, together with anticipated revenues, will be sufficient to fund the Company’s operations into the fourth 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, 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.