1. Liquidity and Capital Resources

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Capital Resources

1. Liquidity and Capital Resources

During the fiscal year ended December 31, 2019 and 2018, the Company primarily used revenues from its operation supplemented by cash to fund its operations.

Cash and cash equivalents are carried at cost or amortized cost and represent cash on hand, deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date. The Company had $11,853,627 and $321,788 classified as cash and cash equivalents as of December 31, 2019, and December 31, 2018, respectively.

The Company maintains its cash balances with a high-credit-quality financial institution. At times, such cash may be more than the insured limit of $250,000. The Company has not experienced any losses in such accounts, and management believes the Company is not exposed to any significant credit risk on its cash and cash equivalents.

To mitigate credit risk, the Company may purchase highly liquid investments with an original maturity of three months or less. At December 31, 2019, the Company had one United States Treasury Bill with a maturity date of January 14, 2020 and bearing interest at a rate of approximately 1.4%.

The following table depicts the composition of the Company’s cash and cash equivalents as of December 31, 2019 and 2018:

	December 31, 2019		December 31, 2018
Deposits placed with banks	$	736,101	$	321,788
United States Treasury Bill		11,117,526		–
Total cash and cash equivalents	$	11,853,627	$	321,788