Quarterly report pursuant to Section 13 or 15(d)

Management's Plans

v3.10.0.1
Management's Plans
9 Months Ended
Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Management's Plans

Note 6. Management’s Plans

 

On August 27, 2014, FASB issued ASU 2014-05, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances.

 

The Company has experienced significant operating losses over the past 2 years (2016 and 2017) and generated a net loss for the three and nine months ended September 30, 2018. These losses resulted in the usage of all cash proceeds from the Company’s initial public offering in 2015. The Company successfully raised $5.4 million through a secondary public offering on October 30, 2018.

       

We believe that we have enough cash to mitigate the substantial doubt raised by our recent operating losses and satisfy our estimated liquidity needs for the 12 months from the issuance of these financial statements and avoid any substantial doubt about the Company’s ability to continue as a going concern as defined by ASU 2014-05.  However, we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. Additionally, a failure to generate additional liquidity could negatively impact our ability to acquire units.