ZAP (fka ZAAP)

[BubbleBuddy]

DEFINITION OF 'GOING CONCERN'

Definition (source #1):

"A term for a company that has the resources needed in order to continue to operate indefinitely. If a company is not a going concern, it means the company has gone bankrupt."

"In other words, this refers to a company's ability to make enough money to stay afloat or avoid bankruptcy."

http://www.investopedia.com/terms/g/goingconcern.asp

Definition (source #2):

"Going concern is a basic underlying assumption in accounting. The assumption is that a company or other entity will be able to continue operating for a period of time that is sufficient to carry out its commitments, obligations, objectives, and so on. In other words, the company will not have to liquidate or be forced out of business in the foreseeable future."

http://www.accountingcoach.com/blog/going-concern

Explination:

"Under the going concern assumption, an entity is viewed as continuing in business for the foreseeable future. General purpose financial statements are prepared on a going concern basis, unless management either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. Special purpose financial statements may or may not be prepared in accordance with a financial reporting framework for which the going concern basis is relevant (for example, the going concern basis is not relevant for some financial statements prepared on a tax basis in particular jurisdictions). When the use of the going concern assumption is appropriate, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business."

http://en.wikipedia.org/wiki/Going_concern

ZAP plainly states in the report that, "Based on the above considerations, management projects that we have sufficient funds to meet our working capital requirements and debt obligations as they become due."