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Going Concern and Management's Plans
6 Months Ended
Jun. 30, 2019
Going Concern and Management's Plans  
Note 2. Going Concern and Management's Plans

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the six months ended June 30, 2019, the Company generated a net loss of $1,470,098 and the Company has incurred significant losses since inception. As of June 30, 2019, the Company had an accumulated deficit of $51,607,288, a stockholders deficit of $7,626,188 and cash and cash equivalents of $15,742. The Company used $287,431 and $643,353 of cash from operations during the six months ended June 30, 2019 and 2018, respectively, which was funded by proceeds from borrowings from notes and debentures. There is no assurance that such financing will be available in the future. These factors raise substantial doubt about the Companys ability to continue as a going concern within one year after the date that the financial statements are issued. The Company is currently pursuing the following sources of short and long-term working capital:

 

 

1.

The Company is holding preliminary discussions with parties who are interested in licensing, purchasing the rights to or establishing a joint venture to commercialize applications of the Companys technology.

 

2.

The Company is seeking growth capital from certain strategic and/or government (grant) related sources. These sources may, pursuant to any agreements that may be developed in conjunction with such funding, assist in the product definition and design, roll-out and channel penetration of products.

 

3.

The Company is holding discussions with investors, potential strategic partners, and investment banks to obtain debt and/or equity financing.

 

Any failure by the Company to timely procure additional financing or investment adequate to fund the ongoing operations, including planned product development initiatives and commercialization efforts, will have material adverse consequences on the Companys financial condition, results of operations and cash flows as could any unfavorable terms. There are no assurances the Company will be able to obtain the financing and planned product development commercialization. Accordingly, the Company may not have the ability to continue as a going concern. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.