This does not make me feel warm and fuzzy.
From the new Quarterly Report:
Going concern
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has commenced the commercial sale of product at limited production volumes. The Company incurred losses of $3,538,456 and $5,319,659 during the six months ended June 30, 2016 and 2015 respectively. Cash used in operating activities was $2,455,791 and $1,855,745 for the six months ended June 30, 2016 and 2015 respectively. The Company is seeking additional sources of equity or debt financing, and there is no assurance these activities will be successful. These factors raise substantial doubt about the Company’s ability to continue as a going concern and the Company’s continued existence is dependent upon adequate additional financing being raised to develop its sales and marketing program for the sales of 5BARz product, to expand the Company’s product base and commence its planned operations.
Management’s assessment of the significant mitigating factors includes several quantitative and qualitative conditions which support the Company’s ability to continue as a going concern as follows;
F-4
5BARz International, Inc.
Notes To Condensed Consolidated Financial Statements
(Unaudited)
· Continued ability to generate proceeds from private placements – since inception of the business in 2008, the Company has financed operations through private placements and debt, with increased volumes in the recent years. The Company’s gross proceeds from private placements and debt for the six months ended June 30, 2016 was $2,437,000 compared to $2,226,720 in 2015. The Company paid for services and settled debt by the issue of shares in the amount of $1,286,929 during the six months ended June 30, 2016 compared to $445,161 in 2015. The Company’s subsidiary 5BARz India Private Limited is working closely with Axis Capital in India, an investment bank that placed approximately $10.5 Billion USD in investment in the region since January 2015. Axis Capital in India is focused upon the financing of the Company through the sale of up to 20% of the equity securities of the subsidiary operations in India. This investment banking relationship has developed substantially as a result of the acceleration of opportunities for the Company in India. However, there is no assurance that this financing arrangement will be accomplished.
AI
