CONCENTRATIONS

9 Months Ended

Sep. 30, 2022

Note 4. CONCENTRATIONS

Cash and Cash Equivalents and Restricted Cash

The Company considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. The majority of the Company’s cash and cash equivalents are concentrated in one large financial institution, which is in excess of Federal Deposit Insurance Corporation (FDIC) coverage.

A summary of the financial institutions that had a cash and cash equivalents in excess of FDIC limits of $250,000 on September 30, 2022 and December 31, 2021 is presented below:

		September 30, 2022				December 31, 2021
Total cash, cash equivalents and restricted cash in excess of FDIC limits of $250,000		$	30,749,550			$	26,023,593

The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests, as deposits are held in excess of federally insured limits. The Company’s cash equivalent at September 30, 2022 and December 31, 2021, respectively, was a money market account. The Company has not experienced any losses in such account.

The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts shown in unaudited condensed consolidated statements of cash flow:

	September 30, 2022		September 30, 2021
Cash and Cash Equivalent	$	30,009,173	$	28,172,447
Restricted cash		1,325,000		-
Total cash, cash equivalents and restricted cash	$	31,334,173	$	28,172,447

Restricted Cash

The Company's restricted cash consisted of cash balances which were restricted as to withdrawal or usage under the August 18, 2022 security purchase agreement for the purpose of funding any amounts due under the Series E Certificate of Designation upon the redemption of the Series E Preferred Stock.