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Note 3 - Liquidity and Going Concern | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Liquidity and Going Concern [Text Block] | Note 3 – Liquidity and Going Concern The Company's financial statements are prepared using accounting principles generally accepted in the United States (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has a cumulative net loss from inception to December 31, 2020 of over $14 million.. The accompanying financial statements for the year ended December 31, 2020 have been prepared assuming the Company will continue as a going concern. The Company's cash resources will likely be insufficient to meet its anticipated needs during the next twelve months. The Company will require additional financing to fund its future planned operations. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses. Management's plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. The COVID- 19 pandemic has impacted the Company's business operations to some extent and is expected to continue to do so and, in light of the effect of such pandemic on financial markets, these impacts may include reduced access to capital. The ability of the Company to continue as a going concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations. There is substantial doubt about the ability of the Company to continue as a going concern for one year from the issuance of the accompanying consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company's primary sources of liquidity have traditionally been comprised of cash and cash equivalents as well as availability under the Credit Agreement with PNC (see Note 9 ). As noted in Note 9, we initiated an equity issuance process and entered into an amendment with PNC that would have allowed us more flexibility in the use of any proceeds, but also committed us to raise at least $7.5 million by November 15, 2018. That offering was ultimately terminated due to changes in market conditions. As that condition was not met, we were in violation of our Agreement, as amended. As of March 2019, October 2019 and January 2020, we entered into forbearance agreements with PNC. We encountered subsequent compliance failures with covenants during 2020 and we remain out of compliance with the terms of our credit facility, as amended. Currently in discussion with PNC to resolve these matters which if not resolved could force the Company into liquidation. During January 2020, we entered into an equity financing arrangement. The primary investor, LF International Pte, purchased $5 million of convertible preferred stock (convertible to common stock at $1 per share). The first $2.5 million was received during January 2020 with the transaction. In February 2020, we received an additional $0.7 million pursuant to an agreement between the parties wherein the Company issued 140,000 shares of common stock as inducement for accelerating this portion of the transaction. During April 2020, an additional $1.3 million of the remaining funds was received pursuant to a second agreement between the parties, wherein the Company issued 260,000 shares of common stock as inducement for accelerating that portion of the transaction. The remaining $0.5 million was received in June 2020. The entire transaction also allowed for up to $2 million of similar shares to be issued to other investors. As of the date of this filing approximately $1 million of those shares have been sold. Since January 2020, the Company has secured working capital from a PPP loan that was ultimately forgiven. Management's plans include:
| ( 1 ) | Continuing to explore additional equity and/or debt financing transactions.
| ( 2 ) | Continuing to focus our Company on the most profitable elements.
| ( 3 ) | Exploring alternative funding sources on an as needed basis.
Management Assessment Considering both quantitative and qualitative information, we continue to believe that our plans to obtain additional financing will provide us with an ability to finance our operations through 2021 and, if adequately executed, will mitigate the substantial doubt about our ability to continue as a going concern, however, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

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