XML 32 R20.htm IDEA: XBRL DOCUMENT

Liquidity	12 Months Ended
Dec. 31, 2024
Liquidity
Liquidity	Note 11. Liquidity During the years ended December 31, 2024 and 2023, the Company used cash for operations of $2,229,000 and $2,940,000, respectively. As of December 31, 2024, the Company had $235,000 of cash. The Company has a history of operating losses and negative cash flow, which are expected to improve with growth. As described more fully in Note 6, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in the Company’s ability to procure certain products necessary to achieve our growth projections and in elevated legal costs. To mitigate the impact of procurement constraints, the Company built and paid for inventory in anticipation of third quarter seasonal requirements, and invested in materials necessary to carry out trials and initial production runs at new co-manufacturers. The Company secured a receivables-based line of credit in August 2024 of $1,500,000, with $880,000 available to borrow as of December 31, 2024. Management expects that the cash cycle will shorten as additional contracted capacity improves in production volume and efficiency in 2025. 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. Finally, as described in Note1, the Company raised $3,000,000 through the sale of the Company’s common stock in February 2025. Although alleviated, the financial position at December 31, 2024 and historical results raise substantial doubt about the Company’s ability to continue as a going concern. As described, the Company has completed steps to mitigate dispute related issues and raise capital. The actions taken have resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern.

Liquidity

12 Months Ended

Dec. 31, 2024

Note 11. Liquidity

During the years ended December 31, 2024 and 2023, the Company used cash for operations of $2,229,000 and $2,940,000, respectively. As of December 31, 2024, the Company had $235,000 of cash.

The Company has a history of operating losses and negative cash flow, which are expected to improve with growth. As described more fully in Note 6, the dispute and subsequent contract termination with the Manufacturer has resulted in limitations in the Company’s ability to procure certain products necessary to achieve our growth projections and in elevated legal costs.

To mitigate the impact of procurement constraints, the Company built and paid for inventory in anticipation of third quarter seasonal requirements, and invested in materials necessary to carry out trials and initial production runs at new co-manufacturers. The Company secured a receivables-based line of credit in August 2024 of $1,500,000, with $880,000 available to borrow as of December 31, 2024. Management expects that the cash cycle will shorten as additional contracted capacity improves in production volume and efficiency in 2025. 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. Finally, as described in Note1, the Company raised $3,000,000 through the sale of the Company’s common stock in February 2025.

Although alleviated, the financial position at December 31, 2024 and historical results raise substantial doubt about the Company’s ability to continue as a going concern. As described, the Company has completed steps to mitigate dispute related issues and raise capital. The actions taken have resulted in the alleviation of the substantial doubt about the Company’s ability to continue as a going concern.