10Q - I mean some of this is just legal speak, but Dror is literally saying I may have to dilute the hell out of this to ensure cash flow.
"LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2014, we had approximately $61,000 in cash and total current assets of $1,279,184 as of the same date we had approximately $1,590,342 of current liabilities and a working capital deficit of approximately $311,158.
Our ability to continue our business activities as a going concern including continuation of our existing business service lines and funding our strategic growth plans will depend upon, among other things, raising capital from third parties or receiving net cash flows from our existing business operations.
The Company plans to meet its financial obligations and commitments for the next 12 months by increasing its revenues and gross margin and simultaneously raising additional capital in the form of debt or equity instruments in order to continue to increase inventories and accelerate our turn on inventory. We are uncertain whether we will be able to obtain additional financing, or if we are able to obtain financing that it will be on commercially favorable terms to us. There can be no assurance that we will be able to obtain financing on terms that are economically viable to us.
To the extent that we raise additional capital through the sale of equity or convertible debt securities, dilution of the interests of existing shareholders may occur. If we raise additional funds through the issuance of debt securities, these securities may have rights, preferences and privileges senior to holders of common stock and the terms of such debt could impose restrictions on our operations. Regardless of whether our assets prove to be adequate to meet our operational needs, we may seek to compensate providers of services by issuance of stock in lieu of cash, which may also result in dilution to existing shareholders."
