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LIQUIDITY

3 Months Ended

Mar. 31, 2022

2.	LIQUIDITY

The Company has a history of net losses, including the accompanying financial statements for the three months ended March 31, 2022 and 2021, where the Company had net losses of $2.3 million (which includes $0.1 million of non-cash stock-based compensation expense) and $1.3 million (which includes $0.1 million of non-cash stock-based compensation expense), respectively, and net cash used in operating activities of $1.9 million and $0.9 million, respectively. In addition, the Company’s outstanding warrants have generated an additional $0.1 million and $2.5 million of proceeds during the three months ended March 31, 2022 and 2021, respectively.

The Company expects to continue to incur losses for a period of time into the future. In addition, there is no guarantee that the warrants will be exercised or that additional capital or debt financing will be available when and to the extent required, or that if available, it will be on terms acceptable to the Company. The Company continues to invest in sales and marketing resources and seek out sales contracts that should provide additional revenues and, in time, generate operating profits.

The cash balance at March 31, 2022 was $19.2 million and our working capital was $21.8 million at March 31, 2022. 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.