They don't have the millions of dollars to begin manufacturing anything. They can only sell enough stock to pay their salaries and rent on their building. They aren't even keeping up on that. Dieter had to "loan" them his salary.
This is why the death spiral is accelerating. It takes tens of millions of shares now just to pay their monthly expenses. The shares are at 72% of a low market price. Currently .00576. Over 16M shares eligible to be converted at .0064.
You nee to read their filings. They are covering themselves for when they file bankruptcy:
The Company has accumulated a deficit of $(11,101,781) as of May 31, 2017, and had no revenues, which raises substantial doubt as to the Company’s ability to continue as a going concern. Management plans to raise additional capital through the sale of stock to pursue business development activities.
On May 2, 2017, the Company entered into a short-term note agreement with an investor in the amount of $50,000 with an interest rate of 10% per annum, with a due date of September 2, 2017. As of May 31, 2017 the outstanding balance dues was $50,000.
On May 24, 2017, the Company entered into a convertible promissory note with an investor in the amount of $105,000 with an interest rate of 8% per annum, with a due date of May 24, 2018. Convertible 180 days after issuance, at 80% of the lowest trading price over the previous 20 trading days.
Note 7 -- Related Party Note
As of May 31, 2017 and August 31, 2016, we have related party payables to Dieter Sauer in the amounts of $6,400 and $8,000, respectively.
On August 7, 2015, the Company entered into a Commercial Single-Tenant Lease for a 26,550-square foot building in Oxnard, California, with monthly payments of $13,507 for sixty months, plus common area costs of $507.38 per month. All company operations will be concentrated at the site.
Lease Commitments
Year Lease
2017 42,034
2018 168,173
2019 168,173
2020 168,173
Funds on hand are not sufficient to fund our operations and we intend to rely on the sale of stock in private placements to increase liquidity. If we are unable to raise cash through the sale of our stock, we may be required to severely restrict our operations.
