''As of December 31, 2013, our currents assets amounted to $12.4 million, while current liabilities amounted to $291.7 million, resulting in a negative working capital position of $279.3 million. Our independent registered public accounting firm has indicated in their report that there is substantial doubt about our ability to continue as a going concern''
''We have experienced net losses, negative operating cash flows, working capital deficiencies, negative operating cash flow and shareholders’ deficiency, which have affected, and which are expected to continue to affect, our ability to satisfy our obligations. In addition, as described in Item 5.-Operating and Financial Review and Prospects-Liquidity and Capital Resources, we are in default under various debt obligations which are currently due on demand. Charter rates for bulkers have experienced a high degree of volatility and continue to be distressed. To date, we have also been unable to generate sustainable positive cash flows from operating activities. For the year ended December 31, 2013, we have a loss from continuing operations in the amount of $146.8 million. As of December 31, 2013, our cash and cash equivalents were $2.3 million and current liabilities of $291.7 million were payable within the next twelve months.
The above conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should we are unable to continue as a going concern.
Our existence is dependent upon our ability to obtain necessary financing, which we are currently in the process of securing. We believe that our existing cash resources, combined with projected cash flows from operations, will not be sufficient to execute our business plan and continue operations for the next twelve months without additional funding. We intend to continue to explore various strategic alternatives, including the sale of equity or debt to raise additional capital. Management is also actively taking steps to increase future revenues and reduce our future operating expenses. However, wes cannot provide any assurance that operating results will generate sufficient cash flow to meet our working capital needs or that we will be able to raise additional capital as needed.
If all of our indebtedness was accelerated as a result of our current events of default, we may not have sufficient funds at the time of acceleration to repay our indebtedness and we may not be able to find additional or alternative financing to refinance any such accelerated obligations on terms acceptable to us or on any terms, which could have a material adverse effect on our ability to continue as a going concern.''
AI
