2. Liquidity	6 Months Ended
Jun. 30, 2017
Notes to Financial Statements
Liquidity	The Company’s cash and cash equivalents balance on June 30, 2017 was approximately $495 thousand, an increase of approximately $315 thousand from December 31, 2016. Major uses of cash were a $1.4 million loss for the six months ended June 30, 2017, an increase of approximately $333 thousand in inventory, an increase of approximately $156 thousand in prepaid expenses, and an increase of approximately $68 thousand in accounts receivable. These were offset by an increase of approximately $1.3 million in accounts payable and accrued expenses, an increase of approximately $644 thousand in bank debt, and a decrease of approximately $188 thousand in other assets. On June 30, 2017 the Company had approximately $1.95 million in bank debt for a $3.0 million asset-based credit line and had working capital of approximately $2.3 million, including approximately $495 thousand in cash and cash equivalents. On December 31, 2016 the Company had working capital of approximately $3.4 million including approximately $180 thousand in cash and cash equivalents. The Company’s current ratio at June 30, 2017 was 1.4 compared to 1.7 at December 31, 2016. The Company has experienced losses in the past, and is expected to continue to experience losses until sales grow significantly. The Company has experienced dramatic growth, with sales in 2016 up 65% over sales in 2015 and with sales in the first six months of 2017 up 79% over sales in the first six months of 2016. The Company expects year-over-year growth to continue due to a number of factors including the strength of the Motorola brand, new product introductions, increased shelf space, growing online retailer sales, and international expansion. Because of projected sales increases, the associated improved net income, and its Financing Agreement (as defined below) with Rosenthal & Rosenthal, Inc., the Company expects to maintain acceptable levels of liquidity to meet its obligations as they become due for at least twelve months from the date of our quarterly filing of this Form 10-Q with the Securities Exchange Commission.

2. Liquidity

6 Months Ended

Jun. 30, 2017

The Company’s cash and cash equivalents balance on June 30, 2017 was approximately $495 thousand, an increase of approximately $315 thousand from December 31, 2016. Major uses of cash were a $1.4 million loss for the six months ended June 30, 2017, an increase of approximately $333 thousand in inventory, an increase of approximately $156 thousand in prepaid expenses, and an increase of approximately $68 thousand in accounts receivable. These were offset by an increase of approximately $1.3 million in accounts payable and accrued expenses, an increase of approximately $644 thousand in bank debt, and a decrease of approximately $188 thousand in other assets.

On June 30, 2017 the Company had approximately $1.95 million in bank debt for a $3.0 million asset-based credit line and had working capital of approximately $2.3 million, including approximately $495 thousand in cash and cash equivalents. On December 31, 2016 the Company had working capital of approximately $3.4 million including approximately $180 thousand in cash and cash equivalents. The Company’s current ratio at June 30, 2017 was 1.4 compared to 1.7 at December 31, 2016.

The Company has experienced losses in the past, and is expected to continue to experience losses until sales grow significantly. The Company has experienced dramatic growth, with sales in 2016 up 65% over sales in 2015 and with sales in the first six months of 2017 up 79% over sales in the first six months of 2016. The Company expects year-over-year growth to continue due to a number of factors including the strength of the Motorola brand, new product introductions, increased shelf space, growing online retailer sales, and international expansion. Because of projected sales increases, the associated improved net income, and its Financing Agreement (as defined below) with Rosenthal & Rosenthal, Inc., the Company expects to maintain acceptable levels of liquidity to meet its obligations as they become due for at least twelve months from the date of our quarterly filing of this Form 10-Q with the Securities Exchange Commission.