NOTE 2. GOING CONCERN 

The Company has incurred recurring losses from operations. Future capital requirements will depend on many factors, including the Company’s ability to sell and develop products, generate cash flow from operations, and assess competing market developments. The Company may need additional capital in the future.

As of March 31, 2023, the Company has an accumulated deficit of approximately ($80,200,000). During the three months ended March 31, 2023, the Company experienced negative cash flows from operating activities of approximately ($1,600,000) and has $905,000 of convertible notes payable due in various amounts between April and May 2023.

On March 9, 2023, the Company received approximately $2,500,000 of net proceeds from a Debt Offering (see Note 9).

On April 12, 2023, the Company prepaid the principal and all accrued interest for the convertible notes due in April and May 2023.

Management believes that cash balances of approximately $8,300,000 and positive working capital of $7,100,000 at March 31, 2023 provide adequate working capital for operating activities for the next twelve months after the date these financial statements are issued. Further, actions presently being taken to generate product and services revenues in addition to working capital provide the opportunity for the Company to continue as a going concern as of March 31, 2023.