Liquidity

3 Months Ended

Mar. 31, 2018

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 $1,319,117 and has an accumulated deficit of $19,410,078 for the three months ended March 31, 2018. The Company has been dependent on raising capital from debt and equity financings to fund its operating activities. For the three months ended March 31, 2018, the Company raised $1,858,583 in proceeds from financing activities.

At March 31, 2018, the Company had $1,554,119 of cash on hand with a positive working capital of $6,462,664. 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. In addition, through May 8, 2018, the Company raised an additional $1,615,156 million in cash through a debt offering and the exercise of previously issued warrants (see Note 14, Subsequent Events). Management believes that cash on hand and proceeds generated from the most recent financings, along with revenue that the Company expects to generate from operations, will be sufficient to meet the Company’s cash needs over the next twelve months.