Liquidity	12 Months Ended
Dec. 31, 2021
Liquidity
Liquidity	2. Liquidity The Company’s primary capital requirements are for cash used in operating activities and the repayment of debt. Funds for the Company’s cash and liquidity needs have historically not been generated from operations but rather from loans as well as from convertible debt and equity financings. The Company has been dependent on raising capital from debt and equity financings to meet the Company’s operating needs. For the years ended December 31, 2021 and 2020, the Company incurred a net loss of $2.2 million and $9.9 million, respectively, and has an accumulated deficit of $58.6 million as of December 31, 2021. The Company has been dependent on raising capital from debt and equity financings to meet its needs for cash flow used in operating activities. For the year ended December 31, 2021, the Company raised $5.2 million in additional capital through equity and debt financing (net of repayments). As of December 31, 2021, the Company had $3.3 million of cash on hand with working capital of $4.6 million. The Company’s working capital has increased $22.0 million from December 31, 2020 as cash and prepaid balances have increased and it has repaid or refinanced current debt since 2020. The Company’s ability to meet its ongoing operating cash needs over the next 12 months depends on growing revenues and gross margins, and generating positive operating cash flow primarily through increased sales, improved profit growth, and controlling expenses. 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, reduce or eliminate marketing initiatives, and take other measures that could impair its ability to be successful. Although the Company’s audited financial statements for the year ended December 31, 2021 were prepared under the assumption that it would continue operations as a going concern, the report of its independent registered public accounting firm that accompanies the financial statements for the year ended December 31, 2021 contains a going concern explanatory paragraph in which such firm expressed substantial doubt about the Company’s ability to continue as a going concern, based on the financial statements at that time. If the Company cannot continue as a going concern, its stockholders would likely lose most or all of their investment in it.

Liquidity

12 Months Ended

Dec. 31, 2021

2. Liquidity

The Company’s primary capital requirements are for cash used in operating activities and the repayment of debt. Funds for the Company’s cash and liquidity needs have historically not been generated from operations but rather from loans as well as from convertible debt and equity financings. The Company has been dependent on raising capital from debt and equity financings to meet the Company’s operating needs.

For the years ended December 31, 2021 and 2020, the Company incurred a net loss of $2.2 million and $9.9 million, respectively, and has an accumulated deficit of $58.6 million as of December 31, 2021. The Company has been dependent on raising capital from debt and equity financings to meet its needs for cash flow used in operating activities. For the year ended December 31, 2021, the Company raised $5.2 million in additional capital through equity and debt financing (net of repayments). As of December 31, 2021, the Company had $3.3 million of cash on hand with working capital of $4.6 million. The Company’s working capital has increased $22.0 million from December 31, 2020 as cash and prepaid balances have increased and it has repaid or refinanced current debt since 2020. The Company’s ability to meet its ongoing operating cash needs over the next 12 months depends on growing revenues and gross margins, and generating positive operating cash flow primarily through increased sales, improved profit growth, and controlling expenses. 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, reduce or eliminate marketing initiatives, and take other measures that could impair its ability to be successful.

Although the Company’s audited financial statements for the year ended December 31, 2021 were prepared under the assumption that it would continue operations as a going concern, the report of its independent registered public accounting firm that accompanies the financial statements for the year ended December 31, 2021 contains a going concern explanatory paragraph in which such firm expressed substantial doubt about the Company’s ability to continue as a going concern, based on the financial statements at that time. If the Company cannot continue as a going concern, its stockholders would likely lose most or all of their investment in it.