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LIQUIDITY
12 Months Ended
Dec. 31, 2021
Liquidity  
LIQUIDITY

NOTE 2 – LIQUIDITY

 

The accompanying consolidated financial statements have been prepared on the basis 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. At December 31, 2021, the Company had an accumulated deficit of $134,146,128 and working capital surplus of approximately $21,000,000. For the year ended December 31, 2021, the Company had negative cash flows from operations of $3,329,908. The Company’s operating activities consume the majority of its cash resources. The Company anticipates that it will continue to incur operating losses as it executes its development plans for 2022, as well as other potential strategic and business development initiatives. In addition, the Company has had and expects to have negative cash flows from operations, at least into the near future. The Company has previously funded, and plans to continue funding, these losses primarily through additional infusions of cash from equity and debt financing.

 

The Company believes the following has been able to mitigate the above factors with regards to its ability to continue as a going concern: on November 9, 2021, the Company received net proceeds of approximately $21,073,000 from its public offering. As a result of the above, and cash on hand of approximately $19,530,625 as of March 28, 2022, the Company believes it has sufficient cash to fund operations for the twelve months subsequent to the filing date.

 

Current funds on hand will not be sufficient to enable the Company to fully complete its development activities or attain profitable operations. If the Company is unable to obtain such additional financing on a timely basis, the Company may have to curtail its development, marketing and promotional activities, which would have a material adverse effect on the Company’s business, financial condition and results of operations, and ultimately the Company could be forced to discontinue its operations and liquidate.