Going Concern and Management's Plans

9 Months Ended

Sep. 30, 2016

Going Concern And Managements Plans [Abstract]

Going Concern and Management's Plans

2. Going Concern and Management’s Plans

For the nine months ended September 30, 2016 and 2015, the Company incurred net losses of approximately $6.0 million and $6.6 million, respectively, and cash used in operations was approximately $7.9 million and $6.2 million, respectively. Further, the Company had cash of $2.8 million and net current liabilities of $7.0 million as of September 30, 2016, including a $3.0 million convertible note due on demand with the maturity date of December 31, 2016 and accumulated deficit of approximately $92.2 million and $84.6 million as of September 30, 2016 and 2015, respectively, due to recurring losses since the inception of our business.

The Company must continue to rely on proceeds from debt and equity issuances to pay for ongoing operating expenses in order to execute its business plan. On March 28, 2016, the Company completed a common stock financing for $10.0 million. In addition, the Company completed two common stock financing with Seven Star Works Co. Ltd. (“SSW”) for $4.0 million, and with Harvest Alternative Investment Opportunities SPC (“Harvest”) for $4.0 million on July 19, 2016 and August 12, 2016, respectively. Although the Company believes it has the ability to raise funds by issuing debt or equity instruments, additional financing may not be available to the Company on terms acceptable to the Company or at all or such resources may not be received in a timely manner.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty.