Liquidity

3 Months Ended

Mar. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity

2. Liquidity

Historically, the Company has funded its cash and liquidity needs through operating cash flow, convertible notes, extended credit terms, and equity financings. As of March 31, 2021, the Company had an accumulated deficit of $50.4 million. The Company has been dependent on raising capital from debt and equity financings to meet its needs for cash flow used in operating activities.

As of March 31, 2021, the Company had $2.0 million of cash on hand with working capital of $0.5 million. The Company’s ability to meet its ongoing operating cash needs over the next 12 months depends on reducing operating costs and generating positive operating cash flow, primarily through increased sales, improved profit growth and controlling expenses. The Company intends to implement actions to improve profitability, by managing expenses while continuing to increase sales. See Notes 10 and 11 to the consolidated financial statements for a description of the Company’s debt. If the Company is unable to obtain additional financing, or additional financing is not available on acceptable terms, the Company may seek to sell assets, reduce operating expenses or reduce or eliminate marketing initiatives, and take other measures that could impair its ability to be successful.