Quarterly report pursuant to Section 13 or 15(d)

Going Concern

v3.20.2
Going Concern
9 Months Ended
Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Going Concern

Note 7. Going Concern

 The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business within one year after the date the consolidated financial statements are issued.

In accordance with Financial Accounting Standards Board, or the FASB, Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), our management evaluates whether there are conditions or events, considered in aggregate, that raise substantial doubt about our ability to continue as a going concern within one year after the date that the financial statements are issued.

The Company has experienced significant operating losses over the past 4 years (2016 through September 30, 2020) with cumulative losses of approximately $18,236,000 and negative cashflows from operations. These losses resulted in the usage of all cash proceeds from the Company’s initial public offering in 2015. For the year ended December 31, 2019, the Company disclosed the substantial doubt about the Company’s ability to continue as a going concern

The Company received a total of approximately $14.0 million during the nine months ended September 30, 2020 due to a number of factors including:

 

Holders of our warrants exercised such warrants for 1.2 million shares in June 2020 which resulted in the Company receiving approximately $2.9 million.

 

The Company was repaid approximately $1.5 million on a related party receivable.

 

The Company received $1.25 million for the issuance of 520,838 common shares.

 

The Company received $8.3 million for the issuance of 10,200,000 common shares.

 

Holders of our warrants exrcised such warrants for 150 thousand in August 2020 which resulted in the Company receiving approximately $0.1 million.

 

As such, we have $12.2 million of cash as of September 30, 2020 which will be enough to satisfy our estimated liquidity needs for the 12 months from the issuance of these financial statements. These factors mitigated the substantial doubt about the Company’s ability to continue as a going concern as defined by ASU 2014-15.