Liquidity and Going Concern

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Going Concern

NOTE 2 - LIQUIDITY AND GOING CONCERN

In December 2019, a novel strain of coronavirus was reported to have surfaced in Wuhan, China. In January 2020, this coronavirus spread to other countries, including the United States, and efforts to contain the spread of this coronavirus intensified. This outbreak continued throughout 2020 and into 2021. The outbreak and any preventative or protective actions that governments or we may take in respect of this coronavirus may result in a period of business disruption, reduced customer traffic and reduced operations. The impact of this coronavirus has had a material negative in the short term. The full financial impact cannot be reasonably estimated at this time, but may materially affect our business, financial condition and results of operations. The impact of the COVID-19 pandemic on the Company and its clients continues to evolve and is expected to adversely impact the Company’s profitability, cash, assumptions and projections.

Even before the state and U.S. governments’ reaction to COVID-19 forced employees to work from their homes starting around March 12, 2020, the Company had begun to experience cash constraints due to the following factors:

1.	Approximately $4,300 of outstanding debt owed to the Company had not been paid and is in default.
2.	The utilization of cash used in financing Vivos Group affiliated activities of $688 in 2019.
3.	The inability to access capital markets due to not having any available shares of common stock.

Executive management took swift action on March 16, 2020 by reducing hours of employees who worked on clients significantly impacted by the COVID-19 virus concerns. Six (6) administrative employees were subsequently furloughed as of March 20, 2020, and a temporary across the board reduction in pay was instituted across the remaining administrative staff members with executives taking a 50% larger cut in salary. We also began having employees work from their homes making full use of our cloud-based infrastructure, and subsequently terminated the lease effective April 30, 2020 in Rockville, MD which saved the Company approximately $246 a year. On May 5, 2020 (the “Effective Date”), MMG received the proceeds of a loan pursuant to into a promissory note (the “Note”) under the Paycheck Protection Program with TBK Bank, SSB (“Lender”), in the amount of $5,216 (the “PPP Loan”). The Paycheck Protection Program (“PPP”) was established under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”). These funds were utilized entirely for payroll during the 24-week covered period which commenced in May 2020 and ended in October 2020. Maslow exhausted use of the funds for payroll by the end of August 2020.

The PPP Loan enabled MMG to return furloughed employees who were still available to work and hire additional staff for purposes of vital sales, marketing and general and administrative projects. Salaries were returned to normal levels and amounts that were previously suspended were returned to most corporate employees. Those employees who accepted permanent reductions in pay were given incentives to achieve at those levels and beyond. No employee was reduced below the 25% threshold that the PPP Loan mandated.

Even after receiving PPP funds, we continued to look for ways to streamline our business by re-structuring IQS, eliminating occupancy of office in Plymouth, MN, and trimming many non-essential SG&A expenses.

The Company applied for PPP loan forgiveness on March 3, 2020 for the entire amount borrowed in accordance with the PPP rules and guidance. The Company believes that the entire $5,216 of the PPP Loan will be forgiven. However, no assurance can be given that all or any of the PPP Loan will, in fact, be forgiven. Our consolidated financial statements do not include any adjustments to reflect the possible future effects on the forgiveness of the PPP Loan.

Additionally, the Company is pursuing CARES Act Paycheck Protection Program round 2 for which we believe we qualify.

During the year ended December 31, 2020, we incurred a net loss in the amount of $789 and utilized cash from operating activities in the amount of $2,070. Our revenues decreased by $9,242 or 24% when compared to 2019, largely due to the COVID-19 pandemic. We also incurred an operating loss of $988 in 2020 compared to operating income of $1,084 in 2019.

All these conditions noted above, most notably the adverse impact of sales by COVID 19and presumption that all debts coming due without ability to raise cash from Vivos Holdings receivable, raise substantial doubt about the Company’s ability to continue as a going concern. There can be no assurances that the Company will be successful in managing the impact of the foregoing or its ability to maintain sufficient liquidity over a period of time that will allow it to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liability that may results from the possible inability of the Company to continue as a going concern.