Note 3 - Liquidity and Profitability

3 Months Ended

Mar. 31, 2018

Substantial Doubt about Going Concern [Text Block]

Note

Liquidity and Profitability

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Accordingly, the consolidated financial statements do

not

include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company management believes that cash on hand and a line of credit from a related party (see Note

) will be adequate to fund its limited overhead and other cash requirements for the next

twelve

months.

During

2017

the Company completed a private placement of its common stock, raising

$1,940,005.

March 31, 2018,

the Company had a cash balance of approximately

$479,000

and working capital of approximately

$411,000.

We have undertaken, and will continue to implement, various measures to address our financial condition, including:

	•	Curtailing costs and consolidating operations, where feasible.
	•	Seeking debt, equity and other forms of financing, including funding through strategic partnerships.
	•	Reducing operations to conserve cash.
	•	Investigating and pursuing transactions with third parties, including strategic transactions and relationships.

The Company management believes that these measures, coupled with cash on hand and a line of credit from a related party will be adequate to fund its limited overhead and other cash requirements for the next

twelve

months. However, there can be

assurance that we will be able to secure the additional funding we need. If our efforts to do so are unsuccessful, we will be required to further reduce or eliminate our operations.