|
GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS
|
12 Months Ended | ||||
|---|---|---|---|---|---|
|
Dec. 31, 2014
|
|||||
| Going Concern And Management's Liquidity Plans [Abstract] | |||||
| Going Concern And Management's Liquidity Plans [Text Block] |
The accompanying 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 consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company incurred losses of $9,063,427 and $8,792,830 during the years ended December 31, 2014 and 2013, respectively. Cash used in operating activities was $7,052,172 and $4,543,728 for the years ended December 31, 2014 and 2013, respectively. In addition, based upon projected revenues and expenses, the Company believes that it may not have sufficient funds to operate for the next twelve months. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern.
The Company needs to raise additional capital in order to expand its business objectives. The Company funded its operations for the years ended December 31, 2014 and 2013, primarily through the sale of preferred stock for net proceeds of $5,532,877 and $4,083,275, respectively (See Note 17 – Stockholders’ Equity), common stock for proceeds of $2,446,697, promissory notes for net proceeds (repayments) of $(6,019) and $348,028, respectively, (See Note 12 – Loans Payable) and proceeds from the exercise of stock options of $49,959 and $0, respectively. During the years ended December 31, 2014 and 2013, the Company repaid convertible promissory notes of $729,022 and $72,500, respectively (see Note 11 – Convertible Debt Obligations). During the first quarter of 2015, the Company received cash proceeds for the sale of its common stock of $1,244,430. The Company presently has enough cash on hand to sustain its operations on a month to month basis. Historically, the Company has been successful in raising funds to support its capital needs. Management believes that it will be successful in obtaining additional financing; however, no assurance can be provided that the Company will be able to do so. There is no assurance that these funds will be sufficient to enable the Company to attain profitable operations or continue as a going concern. To the extent that the Company is unsuccessful and notwithstanding any request the Company may make, the Company’s remaining debt holders do not agree to convert their notes into equity or extend the maturity dates of their notes, the Company may need to curtail its operations and implement a plan to extend payables and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. Such a plan could have a material adverse effect on the Company’s business, financial condition and results of operations, and ultimately the Company could be forced to discontinue its operations, liquidate and/or seek reorganization in bankruptcy. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.
|