Liquidity and Going Concern |
12 Months Ended | |
|---|---|---|
Dec. 31, 2018 | ||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Substantial Doubt about Going Concern [Text Block] |
Note 2. Liquidity and Going Concern Liquidity and Going Concern The Company’s primary need for liquidity is to fund the working capital needs of the business, and general corporate purposes. The Company has historically incurred losses and experienced negative operating cash flows since the inception of operations in October 2016.
As a result of the recently consummated convertible notes and Series A Preferred Units financings, as of December 19, 2018, the Company had approximately $5.4 million in restricted cash on hand, which under the operative documents was required to be held in reserve pending the closing of the SCWorx acquisition. In addition, as of December 31, 2018, SCWorx was required to provide additional advances of $215,000 under the SPA, as amended. These advances were made in January of 2019.
With the completion of the SCWorx acquisition and related financings, the Company had approximately $5.4 million of restricted cash at a bank. Although the Company has historically generated operating losses and negative operating cash flows, with the completion of the SCWorx acquisition, the Company expects that the combined company will generate operating profits and positive operating cash flows.
The Company believes that these positive operating cash flows, funding from the completed issuances, satisfaction of substantially all outstanding liabilities, and coupled with cash on hand of $3.0 million, are such that, as of the date of this report, the Company has sufficient cash to support the business for at least the one year period following the release date of these consolidated financial statements. |