3. LIQUIDITY	12 Months Ended
Dec. 31, 2017
Notes to Financial Statements
LIQUIDITY	Zoom’s cash balance on December 31, 2017 was $229 thousand compared to $180 thousand on December 31, 2016. Reductions in cash due were the FY 2017 loss of $1.4 million, paydown in debt by $1.2 million, and increase in inventory of $0.3 million. Sources of cash were increased accounts payable and accrued liabilities of $2.8 million and decrease in accounts receivable of $0.3 million. On December 31, 2017, Zoom had $90 thousand in bank debt outstanding on a $3.0 million line of credit, working capital of $2.6 million, and a current ratio of 1.7. Loan availiablity is based on eligible receivables and approximately $2.5 million was available to be borrowed as of December 31, 2017. Although the Company has experienced losses in the past, we continue to experience significant sales growth and increased gross margin. We reported net profit of $377 thousand in Q3, 2017 and net loss of $387 in Q4, 2017. This is Zoom’s second consecutive year with sales growth of 65%. 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 reduction in net loss, and its Financing Agreement, 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 issuance of our annual filing with the Securities Exchange Commission. The Financing Agreement has a maturity date of November 2018, and automatically renews unless cancelled under terms of agreement.

3. LIQUIDITY

12 Months Ended

Dec. 31, 2017

Zoom’s cash balance on December 31, 2017 was $229 thousand compared to $180 thousand on December 31, 2016. Reductions in cash due were the FY 2017 loss of $1.4 million, paydown in debt by $1.2 million, and increase in inventory of $0.3 million. Sources of cash were increased accounts payable and accrued liabilities of $2.8 million and decrease in accounts receivable of $0.3 million. On December 31, 2017, Zoom had $90 thousand in bank debt outstanding on a $3.0 million line of credit, working capital of $2.6 million, and a current ratio of 1.7. Loan availiablity is based on eligible receivables and approximately $2.5 million was available to be borrowed as of December 31, 2017.

Although the Company has experienced losses in the past, we continue to experience significant sales growth and increased gross margin. We reported net profit of $377 thousand in Q3, 2017 and net loss of $387 in Q4, 2017. This is Zoom’s second consecutive year with sales growth of 65%. 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 reduction in net loss, and its Financing Agreement, 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 issuance of our annual filing with the Securities Exchange Commission. The Financing Agreement has a maturity date of November 2018, and automatically renews unless cancelled under terms of agreement.