2. Liquidity	3 Months Ended
Mar. 31, 2019
Notes to Financial Statements
Liquidity	On March 31, 2019 the Company had approximately $2.1 million in bank debt for a $3.0 million asset-based credit line, approximately $116 thousand in cash and cash equivalents, and working capital of approximately $2.2 million. The Company’s credit line has a maturity date of November 2019, and automatically renews from year to year unless cancelled under the terms of agreement. Major sources of cash during the first quarter of 2019 were decreases of approximately $1.4 million in inventory, and prepaid expenses of approximately $313 thousand, and increase in debt of approximately $380 thousand. Major decreases in cash were a loss of approximately $1.1 million, a decrease in accounts payable and accrued liabilities of approximately $793 thousand, and accounts receivable increase of approximately $428 thousand. On May 3, 2019, the Company closed on a private placement pursuant to which the Company sold an aggregate of 4,545,455 shares of common stock at a purchase price of $1.10 per share. The gross proceeds to the Company at the closing of the private placement were approximately $5.0 million. The Company intends to utilize the proceeds from the offering to accelerate the roll-out of new products, for working capital, and for other corporate purposes. The Company’s ability to maintain adequate levels of liquidity is dependent upon its ability to sell inventory on hand and collect related receivables. Although the Company has experienced losses, it continues to experience significant sales growth. The Company expects year-over-year growth to continue for an unpredictable number of years 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 and private placement, 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 the Company’s Quarterly filing of this Form 10-Q with the Securities Exchange Commission.

2. Liquidity

3 Months Ended

Mar. 31, 2019

On March 31, 2019 the Company had approximately $2.1 million in bank debt for a $3.0 million asset-based credit line, approximately $116 thousand in cash and cash equivalents, and working capital of approximately $2.2 million. The Company’s credit line has a maturity date of November 2019, and automatically renews from year to year unless cancelled under the terms of agreement.

Major sources of cash during the first quarter of 2019 were decreases of approximately $1.4 million in inventory, and prepaid expenses of approximately $313 thousand, and increase in debt of approximately $380 thousand. Major decreases in cash were a loss of approximately $1.1 million, a decrease in accounts payable and accrued liabilities of approximately $793 thousand, and accounts receivable increase of approximately $428 thousand. On May 3, 2019, the Company closed on a private placement pursuant to which the Company sold an aggregate of 4,545,455 shares of common stock at a purchase price of $1.10 per share. The gross proceeds to the Company at the closing of the private placement were approximately $5.0 million. The Company intends to utilize the proceeds from the offering to accelerate the roll-out of new products, for working capital, and for other corporate purposes.

The Company’s ability to maintain adequate levels of liquidity is dependent upon its ability to sell inventory on hand and collect related receivables. Although the Company has experienced losses, it continues to experience significant sales growth. The Company expects year-over-year growth to continue for an unpredictable number of years 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 and private placement, 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 the Company’s Quarterly filing of this Form 10-Q with the Securities Exchange Commission.