Note 2 – Going Concern

To date, the Company has generated minimal revenues, experienced negative cash flows from operating activities and has incurred substantial operating losses from its activities. Management expects the Company to continue to generate substantial operating losses and to continue to fund its operations primarily through utilization of its current financial resources, future product sales, and through additional raises of capital.

The Company has financed its operations primarily through sales of equity-related securities. At December 31, 2018, the Company had an accumulated deficit of approximately $61.4 million, total current assets of approximately $22.1 million and total current liabilities of approximately $2.4 million resulting in working capital of approximately $19.7 million. At December 31, 2018, the Company had cash and cash equivalents, and short-term investments of approximately $21.1 million. Based on the Company’s current business plan, it believes their cash, cash equivalents, and short-term investments balance as of December 31, 2018 will be sufficient to meet its anticipated cash requirements through the fourth quarter of 2019. However, there is no assurance that the current business plan will be achievable.

Such conditions raise substantial doubts about the Company’s ability to continue as a going concern. Management’s plan includes revenue generation through the sale of products and raising funds from outside investors. However, there is no assurance that such sale of products will occur or that outside funding will be available to the Company, will be obtained on favorable terms or will provide the Company with sufficient capital to meet its objectives. These financial statements do not include any adjustments relating to the recoverability and classification of assets, carrying amounts or the amount and classification of liabilities that may be required should the Company be unable to continue as a going concern.