POW! Entertainment Inc. (fka POWN)

[rickn23]

10Q is out:

https://www.sec.gov/Archives/edgar/data/1505892/000114420416101680/v438538_10q.htm

Revenues of $108,613
Net loss of $583,121

One customer accounted for 92% of revenue

Cash and equivalents $ 195,810

$0 in marketable securities.

$260,000 is listed as long-term Line-of-credit

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Subsequent Event

On April 12, 2016, the Company entered into a promissory note under which it may receive advances of up to $680,000 from a party with which the Company has a joint venture. The balance currently outstanding is $260,000. The advances bear interest at the Prime Rate announced by Citibank, N. A., from time to time, and are to be repaid with principal at the maturity date of December 31, 2016, unless sooner due as a result of a change in control of the Company. The Note may be prepaid, in whole or in part, at any time without penalty.

Going Concern Qualifications

The Company’s operation will be sustained for three months by the advances from a promissory note entered into subsequent to March 31, 2016. For the three months ended March 31, 2016, the Company had net loss $583,121 and has a negative working capital balance of approximately $4,600,000. Revenues fluctuate and are uncertain and these conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company is currently exploring various other sources of revenues, but there can be no assurances that we will be successful in finding other revenue streams sufficient to support our operational requirements and we may need to scale back operations, defer executive salaries and reduce staff members. The financial statements for the three months ended March 31, 2016 do not contain any adjustments to reflect future effects on the recoverability or classification of assets and liabilities that may result should we not able to continue as a going concern.

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company's assets and the satisfaction of its liabilities in the normal course of conducting its business. The Company's ability to continue as a going concern is dependent upon various factors including, among others, its ability to generate income and positive cash flows from operations.