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If we are not successful in our efforts to increase sales or raise capital, we could experience a shortfall in cash over the next twelve months, and our ability to obtain additional financing on acceptable terms, if at all, may be limited.
−Removed: As of June 30, 2020 and December 31, 2019, we had cash and cash equivalents and a short-term investment, collectively, of $16,112,907 and $1,625,671, respectively.
−Removed: However, during the six months ended June 30, 2020 and year ended December 31, 2019, we reported a net loss of $1,585,400 and $6,920,540 respectively, and used $2,181,122 and $2,815,621 of cash for operations, respectively.
+Added: As of September 30, 2020 and December 31, 2019, we had cash and cash equivalents and a short-term investment, collectively, of $13,047,565 and $1,625,671, respectively.
+Added: However, during the nine months ended September 30, 2020 and year ended December 31, 2019, we reported a net loss of $3,063,673 and $6,920,540 respectively, and used $4,453,862 and $2,815,621 of cash for operations, respectively.
Despite raising capital in the April 2020 Offering resulting in aggregate net proceeds of approximately $1,522,339 and May 2020 Offering resulting in the aggregate net proceeds of approximately $15,596,141, after deducting underwriting discounts and commissions and other expenses related to the offering, if we are not successful with our efforts to increase revenue, we could experience a shortfall in cash over the next twelve months.
8 unchanged sentences
Any of the above limitations could force us to significantly curtail or cease our operations, and you could lose all of your investment in our common stock.
−Removed: These circumstances have raised substantial doubt about our ability to continue as a going concern, and continued cash losses may risk our status as a going concern.
+Added: These circumstances and continued cash losses may risk our status as a going concern.
Our consolidated financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.
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There can be no assurance that the collaboration will yield the anticipated benefits or generate significant revenue.
−Removed: There can be no assurance that our Distributorship Agreement with Osang will generate revenue.
+Added: There can be no assurance that our Distributorship Agreement with Osang will generate revenue or that we will derive substantial revenue from our collaboration with Clarity Labs or our selection as a COVID-19 test provider at LAX.
On April 30, 2020, we entered into the Distributorship Agreement with Osang that provides us with the non-exclusive right to distribute Osang’s GeneFinder COVID-19 Plus RealAmp Kit in the United States for a stated term of one (1) year.
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There can be no assurance that the Distributorship Agreement will continue, that it will yield the anticipated benefits or generate significant revenue, if any.
+Added: On November 16, 2020, we announced that the State of Hawaii had selected Clarity Labs and Clarity Mobile Venture to provide COVID-19 testing and clinical laboratory at Los Angeles International Airport (“LAX”) for testing of passengers travelling between Los Angeles and Hawaii.
+Added: In order to provide such testing, we will be required to build certain facilities, which will require time and capital.
+Added: There can be no assurance that the collaboration with Clarity Labs or the selection as a COVID-19 test provider at LAX will provide substantial revenue.
Product liability and other claims with respect to Osang’s GeneFinder COVID-19 Plus RealAmp Kit may have material adverse effects on our business.
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Since then, the COVID-19 coronavirus has spread to multiple countries, including the United States.
−Removed: The impact of the COVID-19 coronavirus outbreak, or similar global health concerns, could negatively impact our ability to source certain products, impact product pricing, impact our customers’ ability or that of our licensee to obtain financing or have a negative impact on our business.
+Added: The impact of the COVID-19 coronavirus outbreak, or similar global health concerns, has and could continue to negatively impact our ability to source certain products, impact product pricing, impact our customers’ ability or that of our licensee to obtain financing or have a negative impact on our business.
In March 2020, the World Health Organization declared COVID-19 a global pandemic.
+Added: As of November 12, 2020, the United States had the world’s most reported COVID-19 cases, and all 50 states and the District of Columbia have reported cases of infected individuals.
+Added: Several states and countries, including New York, where we are headquartered, have declared states of emergency.
This contagious disease outbreak, which has continued to spread, and the related adverse public health developments, have adversely affected work forces, economies and financial markets globally.
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The global outbreak of the COVID-19 coronavirus continues to rapidly evolve.
−Removed: The extent to which the COVID-19 coronavirus may impact our business and clinical trials will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions and social distancing in the United States and other countries, business closures or business disruptions and the effectiveness of actions taken in the United States and other countries to contain and treat the disease.
+Added: The extent to which the COVID-19 coronavirus may impact our business and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions and social distancing in the United States and other countries, business closures or business disruptions and the effectiveness of actions taken in the United States and other countries to contain and treat the disease.
The issuance of shares of our common stock upon the exercise of outstanding options, warrants and restricted stock units may dilute the percentage ownership of the then-existing stockholders and may make it more difficult to raise additional equity capital.
−Removed: As of August 10, 2020, there are outstanding options and warrants to purchase 52,337 and 353,190 shares of common stock, respectively, in addition to 40,518 vested and unvested restricted stock units.
+Added: As of November 14, 2020, there are outstanding options and warrants to purchase 52,337 and 353,190 shares of common stock, respectively, in addition to 512,343 vested and unvested restricted stock units .
The exercise of such options and warrants and the vesting of restricted stock units would dilute the then-existing stockholders’ percentage ownership of our stock, and any sales in the public market of common stock underlying such securities could adversely affect prevailing market prices for the common stock.
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A few customers have in the past, and may in the future, account for a significant portion of our revenues in any one year or over a period of several consecutive years.
−Removed: For example, for the six months ended June 30, 2020, approximately 69% of our revenue was generated from three customers and for the year ended December 31, 2019, approximately 78% of our revenue was generated from two customers.
−Removed: Although we have contractual relationships with many of our significant customers, our customers may unilaterally reduce or discontinue their contracts with us at any time.
+Added: For example, for the nine months ended September 30, 2020, approximately 53 % of our revenue was generated from three customers and for the year ended December 31, 2019, approximately 78% of our revenue was generated from two customers.
+Added: Although we have contractual relationships w ith many of our significant customers, our customers may unilaterally reduce or discontinue their contracts with us at any time.
The loss of business from a significant customer could have a material adverse effect on our business, financial condition, results of operations and cash flows.
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Any negative impacts to our business or liquidity could adversely impact our ability to establish or maintain these relationships.
−Removed: For the six months ended June 30, 2020 and year ended December 31, 2019, 75% and 74%, respectively of our cost of revenue related to four and three vendors.
+Added: For the nine months ended September 30, 2020 and year ended December 31, 201 9, 67 % and 74 %, respectively of our cost of revenue related to four and three vendors.
Our clients may adjust, cancel or suspend the contracts in our backlog;
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We include in backlog only those contracts for which we have reasonable assurance that the customer can obtain the permits for construction and can fund the construction.
−Removed: As of June 30, 2020, our backlog totaled approximately $17.3 million and as of December 31, 2019, our backlog totaled approximately $17.6 million.
−Removed: The decrease in backlog at June 30, 2020 from December 31, 2019 is primarily attributable to work in progress or completed contracts during the first six months of 2020 for approximately $827,705.
−Removed: We cannot provide assurance that our backlog will be realized as revenues in the amounts reported or, if realized, will result in profits.
+Added: As of September 30, 202 0, our backlog totaled approximately $24.86 million and as of December 31, 2019, our backlog totaled approximately $ 17.6 million.
+Added: The increase in backlog at September 30, 2020 from December 31, 2019 is primarily attributable to two new contracts executed during the third quarter of 2020 for approximately $4.0 million and $2.95 million offset by work in progress or completed contracts during the first nine months of 2020 for approximately $1.4 million.
+Added: W e cannot provide assurance that our backlog will be realized as revenues in the amounts reported or, if realized, will result in profits.
In accordance with industry practice, substantially all of our contracts are subject to cancellation, termination or suspension at our customer’s discretion.
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We can provide no assurance that the contracts in backlog, assuming they produce revenues in the amounts currently estimated, will generate gross margins at the rates we have realized in the past.
−Removed: We could suffer adverse tax and other financial consequences if we are unable to utilize our net operating loss carryforwards.
−Removed: At December 31, 2019, we had tax net operating loss carryforwards totaling approximately $12.9 million.
−Removed: The net operating loss expires beginning 2030 through 2037 for those losses generated in 2017 and prior years.
−Removed: Approximately $5.5 million of such net operating losses will carryforward indefinitely and be available to offset up to 80% of future taxable income each year.
−Removed: Subsequent to December 31, 2019, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was passed, which temporarily removes such 80% limitation for years 2019 and 2020.
−Removed: At December 31, 2019, we had a valuation allowance of $3.1 million, primarily related to net operating loss carryforwards that are not more likely than not to be utilized due to an inability to carry back these losses in most states and short carryforward periods that exist in certain states.
−Removed: If we are unable to use our net operating losses, we may be required to record charges or reduce our deferred tax assets, which could have an adverse effect on our results of operations.
Unregistered Sales of Equity Securities and Use of Proceeds
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.