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 has relied on borrowings from members to fund the operations and growth of the business. As of March 31, 2019, the Company had cash of approximately $2,765,000, working capital of approximately $1,780,000, and an accumulated deficit of approximately $8,727,000.

 

During 2018, the Company began to gain traction with more hospitals and witnessed customer renewals of expiring agreements with existing customers. During the first quarter of 2019, the Company signed four contracts with new customers and plan to sign on average, a contract a month, with new customers during 2019. Management expects increases in revenue to provide sufficient cash flow to fund the operations for at least the one-year period following the release of these consolidated financial statements.

 

In 2018, the Company completed a common stock private place of $1.25 million. In the first quarter of 2019, the transactions related to the purchase of Alliance MMA resulted in an increase of cash of $5.4 million which along with increasing sales is expect to fund operations for at least the next 12 months; however, the Company will thereafter need to raise additional funding through strategic relationships, public or private equity or debt financings. If such funding is not available or not available on terms acceptable to the Company, the Company’s current plans for expansion may be curtailed.