Liquidity, Financial Condition and Management's Plans
|3 Months Ended|
Mar. 31, 2018
|Liquidity, Financial Condition and Management's Plans [Abstract]|
|Liquidity, Financial Condition and Management's Plans||
2. Liquidity, Financial Condition and Management’s Plans
At March 31, 2018, the Company’s principal sources of liquidity were its cash and cash equivalents.
The Company had an accumulated deficit of approximately $71,780,000 at March 31, 2018. During the three months ended March 31, 2018, the Company generated a net loss of approximately $2,034,000, used cash in operations of approximately $1,822,000, and the Company expects that it will continue to generate operating losses for the foreseeable future. At March 31, 2018, the Company had a cash balance of approximately $2,738,000. Total revenues were approximately $3,548,000 and $5,634,000 for the three months ended March 31, 2018 and 2017, respectively. The Company had working deficit of approximately $1,088,000 and $1,140,000 at March 31, 2018 and December 31, 2017, respectively.
The Company is closely monitoring operating costs and capital requirements and has developed an operating plan for 2018. Management of the Company also made efforts in 2017 and first quarter of 2018 to contain and reduce cost, including implementing new approval process over travel and other expenses, significantly reducing the cash compensation for independent board directors, terminating non-performing employees and eliminating certain positions, replacing and negotiating with certain vendors, and consolidating our PDN and Noble Voice operations into one location. If we are not successful in reducing our costs we may then need to dispose of certain of these assets or discontinue certain business lines.
On January 29, 2018, the Company sold 380,295 shares of common stock at a price of $3.91 per share for gross proceeds of $1,486,953. The per share purchase price reflected the closing price of the Company’s common stock on January 24, 2018. The purchaser is Mr. Shengqi Cai, an individual and a resident of the People’s Republic of China.
Management believes that its available funds will be sufficient to meet its working capital requirements through May 2019. However, there can be no assurances that the plans and actions proposed by management will be successful, that the Company will generate anticipated revenues, or that unforeseen circumstances will not require additional funding sources in the future or effectuate plans to conserve liquidity. Future efforts to raise additional funds may not be successful or they may not be available on acceptable terms, if at all. Due to China’s foreign currency control, the Company cannot move money between China and the U.S. freely. The People’s Bank of China (PBOC) and State Administration of Foreign Exchange (SAFE) regulate the flow of foreign exchange in and out of the country. We need to get approval from the Chinese government to move money from China to the U.S. which might take extra time. As of March 31, 2018 we had $2,140,000 cash balance in China.
The entire disclosure relating to liquidity, financial condition, and management's plans.
No definition available.