2. Liquidity	6 Months Ended
Jun. 30, 2019
Liquidity
Liquidity	On June 30, 2019 the Company had no bank debt on a $3.0 million asset-based credit line, approximately $1.79 million in cash and cash equivalents, and working capital of approximately $6.6 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. The Company closed on a $5 million private placement and issued an aggregate of 4,545,455 shares on May 3, 2019 and soon after the closing of the offering, Jeremy Hitchcock and Jonathan Seelig joined Zoom’s Board of Directors. Other major sources of cash during the first six months of 2019 were decreases of approximately $1.2 million in inventory, and increases in accounts payable and accrued expenses of approximated $431 thousand. Major decreases in cash were a loss of approximately $1.9 million, a reduction in debt of approximately $1.7 million, an accounts receivable increase of approximately $791 thousand, and increase in prepaid expenses of approximately $714 thousand. The Company’s ability to maintain adequate levels of liquidity is dependent upon our ability to sell inventory on hand and collect related receivables. The Company was profitable for the first nine months of 2018. Starting in the fourth quarter of 2018, the first full quarter with significant China-related tariffs, the Company experienced losses that reduced liquidity. Although the Company has recently experienced losses, it has continued to experience 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 strength of its balance sheet, and its unused line of credit, 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

6 Months Ended

Jun. 30, 2019

On June 30, 2019 the Company had no bank debt on a $3.0 million asset-based credit line, approximately $1.79 million in cash and cash equivalents, and working capital of approximately $6.6 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.

The Company closed on a $5 million private placement and issued an aggregate of 4,545,455 shares on May 3, 2019 and soon after the closing of the offering, Jeremy Hitchcock and Jonathan Seelig joined Zoom’s Board of Directors. Other major sources of cash during the first six months of 2019 were decreases of approximately $1.2 million in inventory, and increases in accounts payable and accrued expenses of approximated $431 thousand. Major decreases in cash were a loss of approximately $1.9 million, a reduction in debt of approximately $1.7 million, an accounts receivable increase of approximately $791 thousand, and increase in prepaid expenses of approximately $714 thousand.

The Company’s ability to maintain adequate levels of liquidity is dependent upon our ability to sell inventory on hand and collect related receivables. The Company was profitable for the first nine months of 2018. Starting in the fourth quarter of 2018, the first full quarter with significant China-related tariffs, the Company experienced losses that reduced liquidity. Although the Company has recently experienced losses, it has continued to experience 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 strength of its balance sheet, and its unused line of credit, 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.