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LIQUIDITY AND MANAGEMENT'S PLAN
6 Months Ended
Mar. 31, 2018
Liquidity And Management Plan [Abstract]  
LIQUIDITY AND MANAGEMENT'S PLAN

NOTE B — LIQUIDITY AND MANAGEMENT’S PLAN

 

The Company has recurring net losses, which have resulted in an accumulated deficit of $242,003,077 as of March 31, 2018. The Company incurred a net loss of $5,329,922 and generated negative operating cash flow of $3,279,751 for the six month period ended March 31, 2018. The Company also had working capital of $3,877,941 and cash and cash equivalents of $3,709,402 as of March 31, 2018. The Company’s current capital resources include cash and cash equivalents, accounts receivable, and inventories. Historically, the Company has financed its operations principally from the sale of equity securities. As discussed in Note E, on December 20, 2017, the Company entered into a securities purchase agreement with certain institutional investors providing for the purchase and sale of 2,735,000 shares of the Company’s common stock and warrants to purchase an aggregate of 2,735,000 shares of common stock in a registered direct offering with an aggregate gross proceeds of $4,786,250, at a combined purchase price of $1.75 per share for total net proceeds of approximately $4,200,000, after placement agent fees and other estimated offering costs. The offering closed on December 22, 2017.
 
Management has evaluated relevant conditions and events with respect to liquidity requirements for the twelve month period after the Company’s March 31, 2018 financial statements are filed with the SEC. If the Company does not meet its forecasted revenues for the next twelve months, it would not have sufficient cash and cash equivalents to cover the Company’s operating expenses. Due to this condition, management of the Company has established a plan, which has been approved by its Board of Directors, that includes potential financing options and/or cost saving measures that will be implemented if revenue targets are not met within a specified time period.
 

Management believes that it is probable that such plan, if implemented, will result in the liquidity deemed necessary for the Company to mitigate the relevant conditions that raised substantial doubt about the Company’s ability to continue as a going concern one year after the date the financial statements are issued.

 

Management believes that the Company’s cash balances on hand, collection of its accounts receivable, reduced cash burn from cost saving measures and proceeds from a potential financing will be sufficient to fund the Company’s net cash requirements for the next twelve months from the date of filing this quarterly report.