LIQUIDITY AND FINANCIAL CONDITION

6 Months Ended

Jun. 30, 2021

LIQUIDITY AND FINANCIAL CONDITION [Abstract]

3.	LIQUIDITY AND FINANCIAL CONDITION

In the six months ended June 30, 2021, the Company experienced a net operating loss and negative cash flow from operations. At June 30, 2021, the Company had cash on hand of approximately $20.2 million and working capital of approximately $21.8 million. The Company utilized approximately $6.9 million in cash to support operations during the six months ending June 30, 2021. In prior years, the Company has relied predominantly on operating cash flow to fund its operations and borrowings from its credit facilities. For the six months ending June 30, 2021, the Company utilized the proceeds from the registered direct offering and exercise of warrants described below to generate cash flow to support its operations.

On January 8, 2021, the Company entered into a Securities Purchase Agreement with two institutional investors providing for the issuance and sale by the Company of an aggregate 840,000 shares of its Common Stock in a registered direct offering at a purchase price of $12.50 per share for gross proceeds of approximately $10.5 million before deducting fees and offering expenses. The Company’s Form S-3 Registration Statement is effective and allows the Company to offer, issue and sell up to $50,000,000 in the aggregate of our shares of Common Stock.

On June 21, 2021, the Company entered into a Sales Agreement with B. Riley Securities, Inc. as sales agent, pursuant to which the Company may offer and sell, from time to time, through B. Riley shares of Common Stock, par value $0.0001 per share. Upon delivery of a placement notice, and subject to the Company’s instructions in the notice, and the terms and conditions of the Sales Agreement, generally, B. Riley may sell the shares of Common Stock by any method permitted by law deemed to be an “at the market offering.” Shares of Common Stock will be offered and sold pursuant to the Registration Statement, the Base Prospectus that forms a part of such Registration Statement, filed with the SEC on December 4, 2020 and declared effective by the SEC on December 11, 2020 and the Prospectus Supplement 2. On June 22, 2021, the Company filed a Prospectus Supplement with the SEC relating to the offer and sale of up to $39.5 million of Common Stock in the ATM Offering.

The Company believes its current cash on hand, proceeds generated from the registered direct offering, the potential availability of proceeds of sale of shares of Common Stock under the shelf registration, the collectability of its accounts receivable and project backlog are sufficient to meet its operating and capital requirements for at least the next twelve months from the date these financial statements are issued.