The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern. During the six-month periods ended June 30, 2015 and 2014, we generated net income of $3,954,656 and incurred a net loss of $12,793,324, respectively. The 2014 net loss contained stock-based expenses and a warrant modification expense, all of which were one-time expenses, totaling $16,012,011. At June 30, 2015, we had negative working capital of $6,478,085. Historically, we have funded operations primarily through proceeds received (a) in connection with factoring of accounts receivable on a nonrecourse basis for non-pre-approved billings, (b) through issuances of notes payable, and (c) through sales of common stock. Prior to 2015, our business has been concentrated in workers’ compensation billings which were not pre-approved and for which the collection would be delayed for long periods of time depending on various factors. In 2015, we have added a significant amount of business for which billings were pre-approved by the insurance carriers. We have been, and continue to be, dependent upon a few third party marketing services and we derive almost 100% of our revenues from customers referred by these marketing services. While Management believes the addition of pre-approved billings business will improve our operating performance, we understand that we will need additional financing, including accounts receivable factoring for non-pre-approved billings, to be able to fully implement our business plan. Given the indicators described above, there is substantial doubt about our ability to continue as a going concern.
We are attempting to find additional financing sources, however, there is no assurance we will be successful. The successful outcome of future activities cannot be determined at this time, and there are no assurances that, if achieved, we will have sufficient funds to execute our intended business plan.
The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern
