Note 2 – Liquidity and Management Plans

During the three months ended March 31, 2018 and 2017, the Company recorded revenue of $25,000 and $575,368, respectively. During the three months ended March 31, 2018 and 2017, the Company recorded a net loss of $13,443,457 and $12,473,140, respectively. Net cash used in operating activities was $7,727,711 and $10,007,645 for the three months ended March 31, 2018 and 2017, respectively. The Company is currently meeting its liquidity requirements through an at-the-market (“ATM”) sale of common stock in January 2018, which raised net proceeds of $38,846,815, the sales of shares to a private investor during July 2017, which raised net proceeds of $14,932,547, and payments received under product development projects.

As of March 31, 2018, the Company had cash on hand of $44,857,735. The Company expects that cash on hand as of March 31, 2018, together with anticipated revenues, will be sufficient to fund the Company’s operations into the second quarter of 2019.

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 financings to date 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 pursue additional financing, which could include follow-on equity offerings, debt financing, 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.

The market for products using the Company’s technology is nascent and unproven, so the Company’s success is sensitive to many factors, including technological feasibility, regulatory approval, customer acceptance, competition and global market fluctuations.