Quarterly report pursuant to Section 13 or 15(d)

Liquidity

v3.19.1
Liquidity
3 Months Ended
Mar. 31, 2019
Liquidity [Abstract]  
Liquidity

2.

Liquidity 

 

The Company has prepared its condensed consolidated financial statements on a going concern basis, which assumes that the Company will realize its assets and satisfy its liabilities in the normal course of business. However, the Company has incurred net losses since its inception and has negative operating cash flows, which raise substantial doubt about its ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the outcome of the uncertainty concerning the Company’s ability to continue as a going concern.

 

As of March 31, 2019, the Company had cash and cash equivalents of $250,464 and a backlog of $95.8 million. See Note 8 for a discussion of construction backlog. Based on our conversations with key customers, the Company anticipates its backlog to convert to revenue over the following period: 



   
2019


Within 1 year
$ 20,847,051

1 to 2 years


54,546,876

Thereafter


20,445,913


Total Backlog
$ 95,839,840


Based on the expected conversion timeline of its backlog, the Company expects to generate positive cash flows from operations for the year ending December 31, 2019. The Company believes that it has adequate cash balances to meet obligations coming due in the next twelve months and further intends to meet its capital needs by containing costs and entering into strategic alliances, as well as exploring other options, including the possibility of raising additional debt or equity capital as necessary. The Company completed an equity offering in April 2019, which resulted in net proceeds of approximately $692,248. See Note 13 for a discussion of the offering. There is, however, no assurance the Company will be successful in meeting its capital requirements prior to becoming cash flow positive. The Company does not have any additional sources secured for future funding, and if it is unable to raise the necessary capital at the times it requires such funding, it may need to materially change its business plan, including delaying implementation of aspects of such business plan or curtailing or abandoning such business plan altogether.