NOTE 2. GOING CONCERN 

The Company has incurred recurring losses from operations and has limited cash liquidity and capital resources to meet future capital requirements. The Company’s ability to meet 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 sources in the near future.  Sources of debt financing may result in high interest expense. Any financing, if available, may be on unfavorable terms.  If adequate funds are not available or obtained, the Company may be required to reduce or curtail operations.

As of September 30, 2023, the Company has an accumulated deficit of approximately $85,225,000. The Company continues to experience negative cash flows from operating activities of approximately $4,705,000 during the nine months ended September 30, 2023. It appears these principal conditions or events, considered in the aggregate, indicate it is probable that the Company will be unable to meet its obligations as they become due within one year after the date the financial statements are issued. As such, there is substantial doubt about the entity’s ability to continue as a going concern.

Management believes that cash balances of approximately $4,125,000 and positive working capital of $3,687,000 at September 30, 2023 do not provide adequate operating capital for operating activities for the next twelve months after the date these financial statements are issued. However, management believes actions presently being taken to generate product and services revenues, and positive cash flows, in addition to the Company’s plans and ability to access capital sources and implement expense reduction tactics to preserve working capital provide the opportunity for the Company to continue as a going concern as of September 30, 2023. These plans are contingent upon the actions to be performed by the Company and these conditions have not been met on or before September 30, 2023. As such, substantial doubt about the entity’s ability to continue as a going concern has not been alleviated as of September 30, 2023.