GrowLife Inc (PHOT)

[EDobbs40]

The Company anticipates that it will record losses from operations for the foreseeable future. As of September 30, 2016, our accumulated deficit was $118,454,400. The Company has experienced recurring operating losses and negative operating cash flows since inception, and has financed its working capital requirements during this period primarily through the recurring issuance of convertible notes payable and advances from a related party. The audit report prepared by our independent registered public accounting firm relating to our financial statements for the year ended December 31, 2015 and filed with the SEC on April 14, 2016 includes an explanatory paragraph expressing the substantial doubt about our ability to continue as a going concern.

Continuation of the Company as a going concern is dependent upon obtaining additional working capital. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

This is the part that is the most concerning for me as a shareholder. It appears that they just don't have any money to move forward.