Is CDEX financially solvent for the current month of July 2006?
Form 10QSB for CDEX INC
14-Jun-2006
Quarterly Report
Excerpted
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATION
You should read the following discussion in conjunction with our unaudited financial statements and related notes included elsewhere in this document. The following discussion, as well as other discussions in this document, contains forward-looking statements. Please see Forward-Looking Statements for a discussion of uncertainties, risks and assumptions associated with these statements.
To date, CDEX has incurred substantial losses, and will require financing for working capital to meet its operating objectives. We anticipate that we will require financing on an ongoing basis unless and until we are able to support our operating activities with additional revenues.
As of April 30, 2006, we had negative working capital of $184,237, including $86,698 of cash and cash equivalents. We anticipate the need to raise approximately $3,000,000 over the next eighteen months to satisfy our current budgetary projections. Our continued operations, as well as the implementation of our business plan, therefore will depend upon our ability to raise additional funds through bank borrowings, equity or debt financing. If the company is not successful in raising the working capital, it may default in its payments to its creditors and could result in the filing of bankruptcy protection. Currently, the company has sufficient cash to fund operations through the end of June 2006. The company is actively seeking new investments from its current accredited investors as well as new accredited investors.
AI
