LIQUIDITY

6 Months Ended

Jun. 30, 2021

Liquidity

LIQUIDITY

2. LIQUIDITY

As reflected in the accompanying unaudited condensed financial statements for the six months ended June 30, 2021, the Company had a net loss and net cash used in operating activities of $2,892,597 (which includes $495,368 of non-cash compensation expense) and $3,750,649, respectively. Additionally, at June 30, 2021, the Company had an accumulated deficit of $53,915,203. The Company has incurred significant losses from operations since inception, and such losses are expected to continue.

In April 2019, the Company issued shares of its common stock in a public offering that generated gross proceeds of $13,201,000, which was used to pay off the Company’s debt and to fund business operations. The Company issued shares in two additional public offerings generating gross proceeds of $11,499,675 in July 2020 and $7,500,000 in November 2020. In addition, the company issued warrants as part of the April 2019 public offering which has generated an additional $11,053,338 during fiscal 2020 through June 30, 2021. At June 30, 2021, there are warrants outstanding to purchase up to 549,335 shares of common stock, which if fully exercised would generate an additional $3,465,410.

At June 30, 2021, our cash balance was $25,308,606 and our working capital was $28,177,437. Management believes it has sufficient cash to fund its liabilities and operations for at least the next twelve months from the issue date of this report.