Let's understand what is happening as of Q1, Business is declining per 10Q, See Below;
Our uses of cash include working capital needs, debt service and acquisitions. As of March 31, 2015, we had unrestricted cash of $1,021,281 and a working capital deficit of ($209,202,367), which included $54,246,900 of short term-indebtedness described under “Debt and Equity Financings” below, as compared to cash of $2,099,475 and a working capital deficit of ($146,106,470) as of December 31, 2014.
Our sources of cash include cash on hand, and equity and debt financings. As of March 31, 2015, we had unrestricted cash of approximately $1,021,281.
Working capital deficit was ($209,202,367) and ($146,106,470) at March 31, 2015 and December 31, 2014, respectively; and cash and cash equivalents were approximately $1,021,281and $2,099,475, respectively. The increase in the working capital deficit is attributable to equity and debt financings by the Company, partially offset by continued increases in operating expenses. Absent generation of sufficient revenue from the execution of our business plan, we will need to obtain additional debt or equity financing, especially if we experience downturns in our business that are more severe or longer than anticipated, or if we continue to experience significant regulatory compliance expense levels resulting from being a publicly-traded company. If we attempt to obtain additional debt or equity financing, we cannot assume that such financing will be available to us on favorable terms, or at all.
For whatever reason ECIG is losing market share to another competitor. Or the Vaping market in a whole as a Fade is disappearing. I am really concerned that Revs. were only $11 Million since we know January 2nd ECIG launched a multi-million AD champaign in USA also TDR began distribution of their Vaping products in the U.K. If revenues do not show an uptick in Q2 I am out.
