3.	Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. As of

June 30, 2018

and

December 31, 2017,

the Company had an accumulated deficit of

$17.3

million and

$15.9

million, respectively. In addition, the

$3.5

million revolving credit facility (the “Credit Facility”) with North Mill Capital LLC (“North Mill”), will terminate on

November 22, 2018

unless extended in writing by North Mill (See Note

). There is

assurance that North Mill will extend the Credit Facility beyond the termination date. In order to meet its current working capital needs, the Company sought additional funding for its operations without success through a working capital loan and/or equity funding arrangements. There can be

assurance that the Company will be successful in further efforts to obtain additional equity or debt financing. The Company’s ability to raise funds in the equity market

may

be impacted by the absence of a liquid trading market in its common stock. In the past the Company has relied heavily on

one

customer for revenue generation and on

one

vendor that supplied the Company with a necessary component for certain of its products (“Significant Vendor”). In the

first

quarter of

2018,

total cost of goods sold for parts sales were comprised of approximately

52%

of the purchases from the Significant Vendor. However, in

April 2018,

the Company was placed on credit hold by the Significant Vendor and subsequent to the end of the

second

quarter, the Significant Vendor terminated its relationship with the Company. As a result, the Company experienced decreased sales in the

second

quarter, and its financial results were adversely affected. The Company expects parts and service sales to decrease further in the

third

quarter. The Company has begun exploring available restructuring options, including cost reductions and sales improvements. The aforementioned factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do

not

include any adjustments that might result from the outcome of this uncertainty.

If the company's revenue and stock price continues to decline, it is likely the company will recognize a goodwill impairment in the

third

quarter as carrying value will exceed fair value.