XML 20 R8.htm IDEA: XBRL DOCUMENT v3.22.1
Note B - Liquidity and Uncertainties
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Substantial Doubt about Going Concern [Text Block]

NOTE B-  LIQUIDITY AND UNCERTAINTIES

    

The Company has evaluated whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. As of December 31, 2021, the Company had an accumulated deficit of $107.7 million and has incurred a net loss of approximately $6.8 million and $7.3 million for the year ended December 31, 2021, and 2020 respectively.

 

In the second quarter of 2020, the Company completed two public offerings. In April 2020, a Common Stock offering generating gross proceeds of approximately $5.1 million (5,420,000 common shares and 2,710,000 warrants). The combined price of the shares and warrants was $0.95 per share. The warrants are exercisable at a price of $1.20 per share and have an expiration of three (3) years from the issue date. In June 2020, the Company completed a second Common Stock offering generating gross proceeds of approximately $14.6 million (6,770,000 common shares and 3,749,000 warrants). The combined price of the shares and warrants was $2.15 per share. The warrants are exercisable at $2.60 and expire three (3) years from the issue date.  Management believes the Company has sufficient liquidity to support operations beyond a year from the consolidated financial statements issue date.

 

The coronavirus (COVID-19) adversely impacted the Company's operations, our distributors and suppliers. As a result of the reduced hours, closings of dental offices, hospitals, and pain clinics throughout the country and the rest of the world, revenues for the years ended December 31, 2021, and 2020 were adversely affected. Business interruptions, resulting from COVID-19, or new strain could significantly disrupt our operations and could have a material adverse impact on our business into 2022. 

 

In addition to its employees, the Company relies on (i) distributors, agents, and third-party logistics providers in connection with product sales and distribution and (ii) raw material and component suppliers in the U.S., Europe, and China. If the Company, or any of these entities encounter any disruptions to its or their respective operations or facilities, or if the Company or any of these third-party partners were to shut down for any reason, including by fire, natural disaster, such as a hurricane, tornado or severe storm, power outage, systems failure, labor dispute, pandemic or other public health crises, or other unforeseen disruption, then the Company or they may be prevented or delayed from effectively operating its or their business, respectively.

 

In addition, it is uncertain as to what effect the continuing spread of COVID-19 will have on the commercialization efforts of our CompuFlo Epidural and CathCheck systems. Such future developments could have a material adverse effect on the Company financial results and its ability to conduct business as expected.