Quantum Materials Corp. (fka QTMM)

[quarrydawg]

Keeping it real

It may be that QMC, with good reason, would want to pay their way with upcoming revenues rather than convertible debt. It may be that the revenue is in sight from a contract under an NDA.

The February statement says what? up to $650k for a reactor? $650k is less than $3 million, by a bunch and the $3mill I'm sure is for more than a reactor. I haven't seen it said that anyone is going to pony-up $3 million for future funding and expansion, but I sure would like to be proven wrong:)

I think all of us, except Mr. Leo, want this to succeed. Hyper optimistic interpretations of spaces between words are fun to spitball with but they are not known facts. When QMC says in October 2014 that they need cash, should we remind them of what they said in February 2014 or given that we all have a degree of faith in this company do we think that they know what they are talking about?

GO QMC!

Liquidity and Capital Resources

At September 30, 2014 the Company had a working capital deficit of approximately $2,243,083 with total current liabilities of approximately $2,706,737. Approximately $765,748 of these liabilities is owed to our officers, directors and employees for services rendered and accrued through September 30, 2014. As a result, the Company has relied on financing through the issuance of common stock and a convertible debenture as well as advances from a director, shareholder and employees' wages being partially or fully accrued but not paid.

As of September 30, 2014, the Company lacks cash or cash equivalent assets and continues to incur losses in its operations. Over the past five years, the Company relied on sales of its Common Stock to support its operations and on various universities performing work and providing U.S. licensing rights under business agreements in which the Company has at times been in arrears in payments as well as employees and consultants agreeing to defer payment of wages and fees owed to them and/or converting such wages and fees into the securities of the Company. Currently, the Company is seeking additional financing in excess of $3,000,000; however, no definitive agreements for additional financing have been received and the Company cannot provide any assurance that additional funding will be available to finance our operations on terms acceptable to us, if at all, in order to support our plan of operations. If we are unable to achieve the financing necessary to continue our plan of operations, then our stockholders may lose their entire investment in the Company. See "Notes to Financial Statements."

Cash was used in operating activities of $493,044 for the three months ending September 30, 2014. This is a result of a net loss of $95,638, off-set by non-cash items: stock issued for services ($25,000); debenture interest ($12,726); beneficial conversion charge related to convertible notes ($171,976); depreciation and amortization ($11,947) and recognized benefit from reduction in derivative liability ($563,547), further off-set by changes in working capital components, as in accounts payable of $49,478 and changes in accrued liabilities for related parties of $18,416. Cash flows used in investing activities in the three months ended September 30, 2014 were $190,284 which consisted of purchase of licenses of $137,743 and purchases of equipment of $52,541. Cash received from financing activities during the three months ended September 30, 2014 were $860,971 which consisted of proceeds of the sale of common stock of $586,121 and proceeds from the issuance of convertible debt of $274,850 (an additional $100,200 was received subsequent to period end).

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying value and classification of assets and liabilities should the Company be unable to continue as a going concern. At September 30, 2014, the Company had not yet achieved profitable operations, has accumulated losses of $21,770,932 as of September 30, 2014, has a working capital deficit of $2,243,083 and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company's ability to continue as a going concern.
The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The Company requires immediate and substantial additional financing (estimated at $3,000,000) during fiscal 2015 to maintain and expand its operations. The Company is exploring all reasonable available financing at this time, including, without limitation, the sale of equity, debt borrowing and/or the receipt of product licensing fees and royalties. We can provide no assurances that such financing will be obtained on terms satisfactory to the Company, if at all. Further, we can provide no assurances that one or more mutually acceptable licensing agreement(s) will be entered into on terms satisfactory to us, if at all. In this respect, see "Note 2" in our notes to the consolidated financial statements for additional information as to the possibility that we may not be able to continue as a "going concern."

this isn't at you bigE, just seemed like the right place to carry on the conversation. :)