2. LIQUIDITY

3 Months Ended

Mar. 31, 2019

Risks and Uncertainties [Abstract]

LIQUIDITY

2. LIQUIDITY

As reflected in the accompanying unaudited condensed financial statements for the three months ended March 31, 2019, the Company had a net loss and net cash used in operating activities of $949,631 and $222,177, respectively. Additionally, at March 31, 2019, the Company had a working capital deficit of $4,215,214, an accumulated deficit of $42,825,290 and a stockholders’ deficit of $3,392,792. Additionally, the Company has incurred significant losses from operations since inception, and such losses are expected to continue. 

On April 18, 2019, the Company closed a transaction entered into pursuant to that certain Underwriting Agreement dated as of April 16, 2019 (the “Underwriting Agreement”) with Maxim Group LLC (“Maxim”), as representative for the several underwriters (the “Underwriters”), pursuant to which the Company agreed to issue and sell to the Underwriters an aggregate of 2,000,000 units with each unit consisting of one (1) share of the Company’s common stock, par value $0.001 per share (the “Common Stock”), and a warrant to purchase one (1) share of Common Stock at an exercise price equal to $6.30 per share (the “Warrants”). The Company received gross proceeds of approximately $12,000,000, before deducting underwriting discounts and commissions and estimated offering expenses. The total expenses of the offering, including underwriters’ discounts and commissions, were approximately $1,350,000 (See Note 15).

With this subsequent financing, management believes it has sufficient cash to fund its liabilities and operations for the upcoming year.