Liquidity and Capital Resources

12 Months Ended

Jun. 30, 2023

Liquidity And Capital Resources

Liquidity and Capital Resources [Text Block]

Note 13. Liquidity and Capital Resources

As of June 30, 2023, the Company had $398,797 in cash and cash equivalents, compared to $550,110 as of June 30, 2022. The Company believes that its existing revenue stream, cash flows from consolidated operations, and current capital resources provide sufficient liquidity to fund operations through at least September 30, 2024.

The Company is a party to an equity distribution agreement (as amended, the "Equity Distribution Agreement") with Canaccord Genuity LLC and Roth Capital Partners LLC (the "Agents"), pursuant to which the Company may offer and sell up to $3,875,150 of common stock in one or more "at the market offerings" through the Agents under our Registration Statement on Form S-3 (File No. 333-256280), which was declared effective by the SEC on July 1, 2021 (the "2021 Registration Statement"), subject to applicable limitations on the aggregate market value of securities that may be sold during any 12 calendar month period imposed by Form S-3 on registrants having an aggregate market value of securities of less than $75 million. Under the terms of the Equity Distribution Agreement, the Company agreed to pay the Agents a fixed commission rate equal to 3.0% of the gross sale price per share of common stock sold. On April 7, 2023, the Company filed a prospectus supplement to the base prospectus included in the 2021 Registration Statement for the sale of up to $2,671,513 of common stock pursuant to the terms of the Equity Distribution Agreement (the "ATM"). As of the date hereof, the Company had not commenced any sales under the ATM.

To fully execute on its business strategy of acquiring other entities, the Company will need to raise additional capital. Absent additional financing, the Company may have to curtail its current acquisition strategy.

As discussed in Note 15, on August 1, 2023, the Company entered into a Loan and Security Agreement which is expected to provide additional operating capital to the Company.