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Liquidity
6 Months Ended
Jun. 30, 2023
Liquidity  
Liquidity

Note 9. Liquidity

 

During the six months ended June 30, 2023, the Company used cash for operations of $2,067,000. The Company has a history of operating losses and negative cash flow, which were expected to improve with growth, offset by working capital required to achieve such growth. As described more fully in Note 5, the dispute and subsequent contract termination with the Manufacturer has resulted in uncertainty around our ability to procure product, which in turn may inhibit our ability to achieve positive cash flow. Additionally, management has considered that dispute resolution, including litigation, is costly and will require the outlay of cash.

 

However, as of June 30, 2023, the Company has $952,000 of cash and in August 2023, obtained a funding commitment of approximately $1,130,000 as more fully described in Note 8. As such, even though management has identified certain indicators, these indicators do not raise substantial doubt regarding the Company’s ability to continue as a going concern. However, management cannot predict, with certainty, the outcome of its potential actions to generate liquidity, including the availability of additional financing, or whether such actions would generate the expected liquidity as planned.