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LIQUIDITY

9 Months Ended

Sep. 30, 2021

2.	LIQUIDITY

As reflected in the accompanying unaudited condensed financial statements for the nine months ended September 30, 2021, the Company had a net loss and net cash used in operating activities of $4,581,228 (which includes $814,588 of non-cash compensation expense) and $5,160,604, respectively. Additionally, at September 30, 2021, the Company had an accumulated deficit of $55,603,834. The Company has incurred significant losses from operations since inception, and such losses are expected to continue.

In April 2019, the Company issued shares of its common stock in a public offering that generated gross proceeds of $13,201,000, which was used to pay off the Company’s debt and to fund business operations. The Company issued shares in two additional public offerings generating gross proceeds of $11,499,675 in July 2020 and $7,500,000 in November 2020. In addition, the warrants issued in the April 2019 public offering and from earlier private offerings generated an additional $12,611,377 during fiscal 2020 through September 30, 2021 from the exercise of such warrants. At September 30, 2021, there are warrants outstanding to purchase up to 542,823 shares of common stock, which if fully exercised would generate an additional $3,424,385.

At September 30, 2021, our cash balance was $23,078,452 and our working capital was $26,125,088. Management believes it has sufficient cash to fund its liabilities and operations for at least the next twelve months from the issue date of this report.