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Note 2 - Liquidity and Basis of Presentation
3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
Liquidity [Text Block]
NOTE
2
– LIQUIDITY
AND BASIS OF PRESENTATION
 
The accompanying financial statements have been prepared on a going concern basis. The Company has a history of recurring losses from operations and use of cash in operating activities. For the
three
months ended
March
31,
2017,
the Company's net loss was
$2,728,440
and cash used in operating activities was
$741,557.
In addition, at
March
31,
2017,
the Company had negative working capital of
$1,437,914,
which includes
$1,224,491
of accrued PIK Note interest and
$164,390
of payables for which the Company believes it has a statute of limitations defense. Furthermore, the Company last obtained financing in
November
2014
but cannot provide any assurance that it will be able to raise additional financing if needed. Collectively, these factors raise substantial doubt about the Company’s ability to continue as a going concern.
 
Management believes that in order for the Company to meet its obligations arising from normal business operations through
May
15,
2018
that the Company requires (i) additional capital either in the form of a private placement of common stock or debt and/or (ii) additional sales of its products that will generate sufficient operating profit and cash flows to fund operations. Without additional capital or additional sales of its products, the Company’s ability to continue to operate will be limited.
 
Based on the Company’s current cash usage expectations, management believes it will not have sufficient liquidity to fund its operations through
May
15,
2018.
 Further, management cannot provide any assurance that it is probable that the Company will be successful in accomplishing any of its plans to raise debt or equity financing or generate significant additional product sales. Collectively, these factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded assets amounts and classification of liabilities that might be necessary should the Company not be able to continue as a going concern.