Liquidity

3 Months Ended

Mar. 31, 2019

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 $2.9 million and has an accumulated deficit of $30 million as of March 31, 2019. 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, 2019, the Company did not raise any additional capital from financing activities.

At March 31, 2019, the Company had $4.2 million of cash on hand with a positive working capital of $15.2 million. 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. Management believes that cash on hand, accounts receivable and inventory, 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.