Note 2 – Liquidity and Management Plans

During the three and nine months ended September 30, 2019, the Company recorded revenue of $40,500 and $154,500, respectively, and during the three and nine months ended September 30, 2018, the Company recorded revenue of $228,000 and $458,773, respectively. During the three and nine months ended September 30, 2019, the Company recorded net losses of $8,184,227 and $29,007,691, respectively, and during the three and nine months ended September 30, 2018, the Company recorded net losses of $12,645,291 and $38,387,119, respectively. Net cash used in operating activities was $20,968,817 and $24,398,264 for the nine months ended September 30, 2019 and 2018, respectively. The Company is currently meeting its liquidity requirements through the proceeds of securities offerings that raised net proceeds of $23,319,156 in March 2019 and $38,846,815 in January 2018, along with payments received under product development projects. Also, the Company expects to receive financing proceeds from an at-market issuance financing facility that was established in October 2019 (see Note 9 – Subsequent Events).

As of September 30, 2019, the Company had cash on hand of $22,800,024. The Company expects that cash on hand as of September 30, 2019, together with anticipated revenues and expected financing, will be sufficient to fund the Company’s operations into the fourth quarter of 2020.

Research and development of new technologies is by its nature unpredictable. Although the Company intends to continue its research and development activities, there can be no assurance that its available resources and business operations will generate revenues sufficient to sustain operations. Accordingly, the Company expects to pursue additional financing, which could include offerings of equity or debt securities, bank financings, commercial agreements with customers or strategic partners, and other alternatives, depending upon market conditions. There is no assurance that such financing would be available on terms that the Company would find acceptable, or at all.

The market for products using the Company’s technology is broad and evolving, but remains nascent and unproven, so the Company’s success is dependent upon many factors, including customer acceptance of our existing products, technical feasibility of future products, regulatory approvals, competition and global market fluctuations.