Liquidity

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity

2. Liquidity

Historically, the Company has funded its cash and liquidity needs through the issuance of convertible notes, extended credit terms and the sale of equity. The Company has incurred a net loss of $3,602,104 and has an accumulated deficit of $16,419,011 for the nine months ended September 30, 2017. The Company has been dependent on raising capital from debt and equity financings to fund its operating activities. For the nine months ended September 30, 2017, the Company raised $8,033,942 in proceeds from financing activities to meet cash flow used in operating activities.

At September 30, 2017, the Company had $4,190,085 of cash on hand with a positive working capital of $6,469,391. The Company’s ability to meet its ongoing operating cash needs is dependent on generating positive operating cash flow, primarily through increased sales, improved profit growth and controlling expenses. Management has taken actions to improve profitability, by managing expenses while increasing sales. Also, in March and May 2017, the Company acquired two businesses, a contract bottling and packaging services company and a small distillery business (both stock purchase transactions), that are expected to improve operating results. Management believes that cash on hand, including proceeds generated from the most recent equity financing, along with revenue that the Company expects to generate from operations, including as a result of its two recent acquisitions, will be sufficient to meet the Company’s cash needs for the foreseeable future.