Going Concern and Management's Plans

6 Months Ended

Jun. 30, 2017

Going Concern And Managements Plans [Abstract]

Going Concern and Management's Plans

2. Going Concern and Management’s Plans

For the six months ended June 30, 2017 and 2016, the Company incurred loss from operations of approximately $1.6 million and $3.8 million, respectively, and incurred net loss of $2.1 million and of $3.9 million, respectively, and cash used in operations was approximately $1.4 million and $4.1 million, respectively. Further, the Company had accumulated deficit of approximately $117.5 million and $115.7 million as of June 30, 2017 and December 31, 2016, respectively, due to recurring losses since the inception of its 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 four separate common stock financings with Seven Star Works Co. Ltd. (“SSW”) for $4.0 million on July 19, 2016, with Harvest Alternative Investment Opportunities SPC (“Harvest”) for $4.0 million on August 12, 2016, with Sun Seven Stars Hong Kong Cultural Development Limited (“SSSHK”) for $2.0 million on November 17, 2016 and with certain investors, officers & directors and affiliates in a private placement for $2.0 million on May 19, 2017, 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.