LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2016, we had cash and cash equivalents of $1,398,848 as compared to $216,395 at March 31, 2015. The increase of $1,182,453 was primarily the result of cash provided in operations in the amount of $935,211 and cash provided by financing activities of $275,000 offset by cash used by investing activities of $27,758. We expect to have enough cash to fund operations for the next twelve months. Our note payable to Kearny Federal Savings Bank of $96,966 on March 31, 2016, is secured and collateralized by restricted cash of $233,050. This note bears an interest rate of 2% above the rate for the savings account. The interest rate at March 31, 2016 was 2.15% per annum and is payable on demand.
Future Sources of Liquidity:
We expect our primary source of cash during fiscal 2017 to be net cash provided by operating activities. We expect that growth in profitable revenues and continued focus on new customers will enable us to continue to generate cash flows from operating activities.
If we do not generate sufficient cash from operations, face unanticipated cash needs or do not otherwise have sufficient cash, we may need to consider the sale of certain intellectual property which does not support the Company’s operations. In addition, we have the ability to reduce certain expenses depending on the level of business operation.
Based on current expectations, we believe that our existing cash of $1,398,848 as of March 31, 2016 and other potential sources of cash will be sufficient to meet our cash requirements. Our ability to meet these requirements will depend on our ability to generate cash in the future, which is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control.
Although we expect available funds and funds generated from our operations to be sufficient to meet our anticipated needs for a minimum of 12 months, we may need to obtain additional capital to continue to operate and grow our business. Our cash requirements may vary materially from those currently anticipated due to changes in our operations, including our marketing and sales activities, product development, and the timing of our receipt of revenues. We do not have any material external sources of liquidity or unused sources of funds. Our ability to obtain additional financing in the future will depend in part upon the prevailing capital market conditions, as well as our business performance. There can be no assurance that we will be successful in our efforts to arrange additional financing on terms satisfactory to us or at all. Additionally, we will continue to reduce certain of our expenses in order to assist in meeting our capital n
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