Liquidity

6 Months Ended

Jun. 30, 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 $5.9 million and has an accumulated deficit of $33.2 million as of June 30, 2019. The Company has been dependent on raising capital from debt and equity financings to fund its operating activities. For the six months ended June 30, 2019, the Company did not raise any additional capital from financing activities.

At June 30, 2019, the Company had $0.8 million of cash on hand with a positive working capital of $12.2 million. The Company’s ability to meet its ongoing operating cash needs over the next twelve months is dependent on raising additional debt or equity capital, generating positive operating cash flow, primarily through increased sales, improved profit growth and controlling expenses. Management intends to implement additional actions to improve profitability, by managing expenses while continuing to increase sales. Additionally, management intends to utilize the large inventory and accounts receivable balances to help satisfy its working capital needs over the next twelve months.