Liquidity and Going Concern
|9 Months Ended|
Sep. 30, 2021
|Organization, Consolidation and Presentation of Financial Statements [Abstract]|
|Liquidity and Going Concern||
Note 2. Liquidity and Going Concern
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The unaudited condensed consolidated financial statements do not include any adjustments that might become necessary should the Company be unable to continue as a going concern.
The Company’s primary need for liquidity is to fund negative operating cash flows, the working capital needs of the business and general corporate purposes. The Company has historically incurred losses and has relied on borrowings and equity capital to fund the operations and growth of the business. The Company has suffered recurring losses from operations and incurred net losses of $961,807 and $2,955,294 for three and nine months ended September 30, 2021, respectively. As of September 30, 2021, the Company had cash of $401,592, a working capital deficit of $2,128,352, and an accumulated deficit of $23,152,117. The Company has not yet achieved profitability and expects to continue to incur negative operating cash flows unless and until it is able to raise sufficient capital and fully implement its business plan. The Company expects that its operating expenses will continue to increase and, as a result, the Company will eventually need to generate significant increases in product revenues to achieve profitability. These conditions indicate that there is substantial doubt about the Company’s ability to continue as a going concern within one year after the condensed consolidated financial statements issuance date.
The Company has taken certain actions in order to remedy its liquidity deficiency, including reducing operating expenses, and seeking to secure additional financing through debt or equity securities to fund future business activities. There can be no assurance that the Company will be able to further reduce costs, generate the level of operating revenues in its business plan, or that additional sources of financing will be available on acceptable terms, if at all. If no additional sources of financing are available, there will be a material adverse effect on the Company’s financial condition and operating results. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The entire disclosure when substantial doubt is raised about the ability to continue as a going concern. Includes, but is not limited to, principal conditions or events that raised substantial doubt about the ability to continue as a going concern, management's evaluation of the significance of those conditions or events in relation to the ability to meet its obligations, and management's plans that alleviated or are intended to mitigate the conditions or events that raise substantial doubt about the ability to continue as a going concern.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef