This doesn't look to promising and SEC delinquent? Ahhh, looks like they are trying to get current to get financing....now it makes sense. They really have no choice with all this debt, yikes...
We have generated net losses from inception and we have an accumulated deficit of
approximately $63 million as of June 30, 2017. We have experienced significant operating losses to date, including net losses of $5.7 million for fiscal year 2017 and
$4.6 million in fiscal year 2016. As of June 30, 2017, we had approximately $16,764 in cash
We may require additional debt and/or equity financing to pursue our growth strategy. Given our limited operating history and existing losses, there can be no assurance that we will be successful in obtaining additional financing. Lack of additional funding could force us to curtail substantially our growth plans or cease of operations. Furthermore, the issuance by us of any additional securities pursuant to any future fundraising activities undertaken by us would dilute the ownership of existing shareholders and may reduce the price of our common stock. Furthermore, debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility. Our failure to successfully obtain additional future funding may jeopardize our ability to continue our business and operations.
As of June 30, 2017, there are approximately 4.2 million in options and warrants that exercisable into common stock both affiliates (officers and directors) and non-affiliates under Rule 144 of the Securities Act of 1933, as amended. In general, under Rule 144, a person who has held stock for six months and is not an affiliate of the Company may sell their exercisable options and warrants without limitation under Rule 144. Future sales of common stock will increase the public float and may have a material adverse effect on the market price of the common stock, which in turn could have a material adverse effect on our ability to obtain future funding as well as create a potential market overhang.
r net loss for the year ended June 30, 2017, was $5,737,907 compared to a net loss of $4,639,698 for the year ending June 30, 2016, representing an increase of $1,098,209. Significant changes for year ended June 30, 2017 compared to the prior fiscal year have been described as follows:
Revenues decreased by $24,353. The decrease is a result of no longer earning services revenues due to the Company shifting its focus to entering into technology license agreement.
Operating expenses for the year ended June 30, 2017, were $2,789,801 compared to operating expenses of $3,547,124 for the corresponding period of the prior fiscal year, a decrease of $757,323. Significant changes for the year ended June 30, 2017, compared to the corresponding period of the prior fiscal year have been described as follows:
Consulting fees increased by $691,262. Consulting fees of $1,420,120 include non-cash fair value of obligations to issue shares of $12,720. This is compared to consulting fees of $728,858 provided in the corresponding period of the prior fiscal year that included non-cash obligations to issue shares of $26,460. The increase is primarily a result of the company switching from the use of employees to consultants during the year;
Advertising and marketing expense decreased by $318,428 to $2,031 for the year ended June 30, 2017 from $320,459 in the corresponding period of the prior fiscal year is attributed to management’s focus on cash conservation strategies;
Salaries and benefits decreased by $478,269. Salaries and benefits incurred of $417,929 for the year ended, 2017, compared to $896,198 in the corresponding period of the prior fiscal year. The decrease is primarily a result of the Company switching from the use of full-time employees to part-time consultants during the year;
Non-cash, Stock based compensation charges for the vesting of restricted shares were $196,576 compared to $179,584 in the corresponding period of the prior fiscal year. The increase is due to all remaining stock awards vesting during the year;
Professional fees decreased by $177,360 to $291,796 for the year ended June 30, 2017 from $463,156 for the corresponding period of the prior fiscal year. The decrease is primarily a result of the Company not needing to spend as much relating to new patents and reducing its audit fees;
Research and development costs decreased by $164,147 to $497,224 for the year ended June 30, 2017 from $661,371 for the corresponding period of the prior fiscal year primarily due to shifting management’s focus on securing licensing the Company’s technology;
