Note 2 – Liquidity and Management Plans

 

During the three and six months ended June 30, 2017, the Company recorded revenue of $299,506 and $874,874, respectively, and during the three and six months ended June 30, 2016, the Company recorded revenue of $181,818 and $318,812, respectively. During the three and six months ended June 30, 2017, the Company recorded a net loss of $12,919,010 and $25,392,150, respectively, and during the three and six months ended June 30, 2016, the Company recorded a net loss of $10,284,555 and $21,081,098, respectively. Net cash used in operating activities was $18,956,003 and $15,946,841 for the six months ended June 30, 2017 and 2016, respectively. The Company is currently meeting its liquidity requirements through the sales of shares to three different private investors during August 2016, November 2016 and December 2016, which raised net proceeds of $34,788,311, and payments received under product development projects.

 

As of June 30, 2017, the Company had cash on hand of $13,084,360. The Company expects that cash on hand as of June 30, 2017, together with funds from a sale of shares to Dialog, which closed in July 2017 (see Note 8 – Subsequent Events) and anticipated revenues, will be sufficient to fund the Company’s operations into the third quarter of 2018.

 

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 financings 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 expects to pursue additional financing, which could include follow-on equity offerings, debt financings, co-development agreements or other alternatives, depending upon the market conditions. 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.