Annual report pursuant to Section 13 and 15(d)

Liquidity

v3.10.0.1
Liquidity
12 Months Ended
Aug. 31, 2017
Notes to Financial Statements  
Note 3: Liquidity

The Company has generated accumulated losses since inception of approximately $9.4 million through August 31, 2017. The Company has a history of negative cash flows from operations and has limited working capital. These conditions raise substantial doubt as to our ability to continue as going concern within one year from issuance date of the financial statements.

 

Since inception, the Company’s principal source of financing has come through the sale of its common stock. The Company successfully completed an Initial Public Offering (IPO) on NASDAQ on June 29, 2017, raising a total of $12 million. In June 2018, the Company completed a private placement of 8% senior secured convertible notes to institutional investors raising $9 million of gross proceeds ($8.4 million net of costs). As of August 31, 2018, the Company’s cash balance was approximately $3.1 million.

 

As a result, the Company believes that the completion of the recent financing and the net proceeds received therefrom, along with its increased revenue is sufficient to alleviate substantial doubt about the Company’s ability to continue as a going concern, twelve months from filing.