2. Liquidity	6 Months Ended
Jun. 30, 2016
Notes to Financial Statements
Liquidity	The Company’s cash and cash equivalents balance at June 30, 2016 was approximately $96 thousand, a decrease of $1.8 million from December 31, 2015. Major uses of cash were attributed to a $1.7 million loss for the six months ended June 30, 2016, an increase of approximately $1.0 million in inventory, an increase of approximately $0.9 million in accounts receivable, and an increase of approximately $0.6 million in prepaid expense. These were partially offset by increases of approximately $1.0 million in accounts payable, approximately $0.6 million in accrued expenses, and approximately $0.6 million in bank debt. On June 30, 2016 the Company had approximately $0.6 million in bank debt, a credit line recently increased to $2.5 million, working capital of approximately $3.0 million including approximately $96 thousand in cash and cash equivalents. The Company raised $3.65 million from a $3.42 million private placement in September 2015 and a $229 thousand rights offering in July 2015. On December 31, 2015 the Company had working capital of approximately $4.4 million including approximately $1.8 million in cash and cash equivalents. The Company’s current ratio at June 30, 2016 was 1.8 compared to 3.6 at December 31, 2015. On May 18, 2015, the Company announced licensing of the Motorola trademark for cable modems and gateways for the U.S. and Canada for five (5) years starting January 2016. In order to support anticipated sales growth, the Company raised approximately $3.65 million as described above. The Company believes that its existing financial resources along with its existing line of credit, with the potential to increase the maximum credit limit, will be sufficient to fund operations for the foreseeable future if the Company’s sales and operating profit expectations are met.

2. Liquidity

6 Months Ended

Jun. 30, 2016

The Company’s cash and cash equivalents balance at June 30, 2016 was approximately $96 thousand, a decrease of $1.8 million from December 31, 2015. Major uses of cash were attributed to a $1.7 million loss for the six months ended June 30, 2016, an increase of approximately $1.0 million in inventory, an increase of approximately $0.9 million in accounts receivable, and an increase of approximately $0.6 million in prepaid expense. These were partially offset by increases of approximately $1.0 million in accounts payable, approximately $0.6 million in accrued expenses, and approximately $0.6 million in bank debt.

On June 30, 2016 the Company had approximately $0.6 million in bank debt, a credit line recently increased to $2.5 million, working capital of approximately $3.0 million including approximately $96 thousand in cash and cash equivalents. The Company raised $3.65 million from a $3.42 million private placement in September 2015 and a $229 thousand rights offering in July 2015. On December 31, 2015 the Company had working capital of approximately $4.4 million including approximately $1.8 million in cash and cash equivalents. The Company’s current ratio at June 30, 2016 was 1.8 compared to 3.6 at December 31, 2015.

On May 18, 2015, the Company announced licensing of the Motorola trademark for cable modems and gateways for the U.S. and Canada for five (5) years starting January 2016. In order to support anticipated sales growth, the Company raised approximately $3.65 million as described above. The Company believes that its existing financial resources along with its existing line of credit, with the potential to increase the maximum credit limit, will be sufficient to fund operations for the foreseeable future if the Company’s sales and operating profit expectations are met.