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Going Concern Considerations
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. In 2013, the Company had limited resources. At December 31, 2013, the Company is in a negative working capital position of $8,683,035 and has a stockholders' deficit of $8,680,767. Additionally, as of December 31, 2013 the Company faced substantial challenges to future success as follows:
?? The Company is delinquent on critical liabilities such as payments to key consultants.
Such matters raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustment that might result from the outcome of this uncertainty.
The goals of the Company will require a significant amount of capital and there can be no assurances that the Company will be able to raise adequate short-term capital to sustain its current operations in the development stage, or that the Company can raise adequate long-term capital from private placement of its common stock or private debt to emerge from the development stage. There can also be no assurances that the Company will ever attain profitability. The Company's long-term viability as a going concern is dependent upon certain key factors, including:
?? The Company's ability to obtain adequate sources of funding to sustain it during its growth stage.
?? The ability of the Company to successfully produce and market its gasoline and diesel engine emission reduction device in a manner that will allow it to ultimately achieve adequate profitability and positive cash flows to sustain its operations.
In order to address its ability to continue as a going concern, implement its business plan and fulfill commitments made in connection with its agreement for acquisition of patent rights (See Note 3), the Company hopes to raise additional capital from sale of its common stock. Sources of funding may not be available on terms that are acceptable to the Company and its stockholders, or may include terms that will result in substantial dilution to existing stockholders.
