Liquidity	6 Months Ended
Jun. 30, 2024
Liquidity
Liquidity	Note 9. Liquidity During the six months ended June 30, 2024, the Company used $1,549,000 in operations. As of June 30, 2024, the Company had $1,185,000 of working capital, including $383,000 in cash. The Company has a history of negative cash flow and operating losses, which were expected to improve with growth. As described more fully in Note 4, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in our ability to procure certain products necessary to achieve our growth projections and in elevated legal costs. To mitigate the impact, the Company has built inventory in anticipation of third quarter seasonal requirements, contributing $320,000 to the cash used in operations in the first half of 2024. The Company expects that the seasonality in its cash flow will ease as additional contracted capacity commences production in the third and fourth quarters of 2024. Additionally, in May 2024, the Company obtained non-recourse litigation financing to allow vigorous pursuit of the complaint against the Manufacturer without further expense to the Company. The financial position at June 30, 2024 and historical results raise substantial doubt about the Company’s ability to continue as a going concern, which has been alleviated. As described, the Company has taken and partially completed steps to mitigate the dispute related issues. Additionally, in August 2024, the Company secured receivables financing of $1,500,000. Management believes that other potential actions are feasible, including raising additional financing and reducing growth-related expenditures. While management cannot predict with certainty whether additional actions would achieve the predicted outcome, the availability of such options, along with the actions already taken, resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern.

Liquidity

6 Months Ended

Jun. 30, 2024

Note 9. Liquidity

During the six months ended June 30, 2024, the Company used $1,549,000 in operations. As of June 30, 2024, the Company had $1,185,000 of working capital, including $383,000 in cash.

The Company has a history of negative cash flow and operating losses, which were expected to improve with growth. As described more fully in Note 4, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in our ability to procure certain products necessary to achieve our growth projections and in elevated legal costs. To mitigate the impact, the Company has built inventory in anticipation of third quarter seasonal requirements, contributing $320,000 to the cash used in operations in the first half of 2024. The Company expects that the seasonality in its cash flow will ease as additional contracted capacity commences production in the third and fourth quarters of 2024. Additionally, in May 2024, the Company obtained non-recourse litigation financing to allow vigorous pursuit of the complaint against the Manufacturer without further expense to the Company.

The financial position at June 30, 2024 and historical results raise substantial doubt about the Company’s ability to continue as a going concern, which has been alleviated. As described, the Company has taken and partially completed steps to mitigate the dispute related issues. Additionally, in August 2024, the Company secured receivables financing of $1,500,000. Management believes that other potential actions are feasible, including raising additional financing and reducing growth-related expenditures. While management cannot predict with certainty whether additional actions would achieve the predicted outcome, the availability of such options, along with the actions already taken, resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern.