Quarterly report pursuant to Section 13 or 15(d)

GOING CONCERN

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GOING CONCERN
3 Months Ended
Mar. 31, 2022
GOING CONCERN  
GOING CONCERN

NOTE 2: GOING CONCERN

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated profits since inception, has sustained net losses of $7,832,942 and $3,023,935 for the three months ended March 31, 2022 and 2021, respectively, and has incurred negative cash flows from operations for the three months ended March 31, 2022 and 2021. The Company has historically lacked liquidity to satisfy obligations as they come due and as of March 31, 2022, and the Company had a working capital deficit of $36,228,742. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company requires significant capital to fund operations and meet its obligations as demands are made. The Company expects to continue to generate operating losses for the foreseeable future. The accompanying consolidated financial statements do not include any adjustments as a result of this uncertainty.

Management Plans

In August 2021, the Company entered into an equity line of credit agreement which the investor is committed to purchase up to $17,500,000 of the Company’s common stock. The Company plans to utilize multiple drawdowns on this agreement, however may be unable to execute on such drawdowns due to restrictions per the agreement.

On May 10, 2022, the Company sold 37,389,800 shares of its common stock pursuant to a Registration Statement on Form S-1 and related prospectus at  a public offering price of $0.25 per share. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by the Company , were $9,347,450, excluding any exercise of the underwriters’ option to purchase additional shares. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes, including the repayment of promissory notes in the principal amount of $3,068,750 (see Note 12).