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Subsequent Events
12 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

Note 16 – Subsequent Events

 

In accordance with ASC 855, Subsequent Events, the Company has evaluated all subsequent events through the date the financial statements were available to be issued. The following events occurred after December 31, 2022.

 

Effective January 3, 2023, the Company issued 119,032 shares of common stock in settlement of restricted stock units issued to directors that vested immediately.

 

Effective January 17, 2023, the Company issued 3,366 shares of common stock in settlement of restricted stock units issued to newly appointed directors in 2022 that vested one year after issuance.

 

Consequently, as of the date of the issuance of these financial statements 8,076,372 shares of our common stock are issued and outstanding.

 

Workforce Reduction

 

The Company has experienced a decline in activity, as indicated in its 2022 sales and its current backlog. This decline is due to many factors, including (i) recent challenges in the cannabis market, (ii) continued supply chain-related delays and cancellations that have affected many of its vendors and partners, and (iii) a broader slowdown in the macroeconomic environment.

 

As a result of this decline in activity, the Company evaluated its current operations, personnel needs and liquidity to make sure our personnel levels match the activity we expect to service over the next several months. On February 21, 2023, we implemented a downsizing of our operations, including a 32% reduction in our workforce, and significant non-personnel cost reductions in order to preserve our cash resources and better reflect our activity levels.

 

We believe these efforts are necessary and will help focus our existing operations on delivering value for customers of both our equipment sales and project management activities. In the meantime, we continue aggressive efforts to increase liquidity and reduce costs and will take additional actions as market conditions warrant.