LIQUIDITY, GOING CONCERN AND MANAGEMENT'S PLANS
|3 Months Ended|
Mar. 31, 2017
|Notes to Financial Statements|
|LIQUIDITY, GOING CONCERN AND MANAGEMENT'S PLANS||
The Company incurred a net loss of approximately $2,239,000 and $1,832,000 for the three months ended March 31, 2017 and 2016, respectively. The Company will continue to incur losses until such time as it can bring a sufficient number of approved products to market and sell them with margins sufficient to offset expenses.
To date, the Company’s sole source of funds has been from the issuance of debt and equity.
As discussed in Note 4, in February 2017, the Company obtained $2,618,060, net of fees, in a private equity financing. The Company will require additional cash in 2017 and is exploring other fundraising options for 2017. No assurances can be provided regarding the success of such efforts. Furthermore, if the Company is unable to raise sufficient financing in 2017, it could be required to undertake initiatives to conserve its capital resources, including delaying or suspending the development of its technology. These matters raise substantial doubt about the Company’s ability to continue as a going concern.
NASDAQ continues to monitor the Company’s ongoing compliance with the stockholders’ equity requirement after a deficiency notice was received in August 2016 for non-compliance with listing rule 5550(b), which requires a minimum $2,500,000 stockholders’ equity for continued listing on the NASDAQ capital market. The Company’s current stockholders’ equity of $1,895,299, as reported in our current quarterly report on form 10-Q for the quarter ended March 31, 2017, has evidenced non-compliance with the listing rule and, consequently, we may be subject to delisting.
The condensed consolidated financial statements do not include any adjustments to the carrying amounts of its assets or liabilities that might be necessary should the Company be unable to continue as a going concern.
The entire disclosure when substantial doubt is raised about the ability to continue as a going concern. Includes, but is not limited to, principal conditions or events that raised substantial doubt about the ability to continue as a going concern, management's evaluation of the significance of those conditions or events in relation to the ability to meet its obligations, and management's plans that alleviated or are intended to mitigate the conditions or events that raise substantial doubt about the ability to continue as a going concern.
Reference 1: http://www.xbrl.org/2003/role/presentationRef