1. We may not be able to continue as a going concern if we do not obtain additional financing by December 31, 2017.
2. Our auditors have expressed substantial doubt about our ability to continue as a going concern
3. We entered into a royalty and licensing agreement with Chaya Hendrick, our CEO, which requires substantial payments by us on an annual basis and additionally in the event gross revenues are derived, which could harm our financial position.
4. As of June 30, 2017, we owe Chaya Hendrick, our CEO, $520,848 in deferred salary, of which the failure to pay could result in Chaya Hendrick’s termination of employment, the result of which would materially harm our business.
5. Additionally, there can be no assurances that Chaya would not attempt to foreclose on our assets in order to satisfy such debt obligations.
6. “In particular, our current strategy to penetrate the market for contactless logical access identification and transaction solutions is heavily dependent on the vision, leadership and experience of its Chairman and CEO, C. Hendrick.”
7. We do not have effective internal controls over our financial reporting
8. Our board of directors has broad discretion to issue additional securities
9. We are authorized under our certificate of incorporation to issue up to 305,000,000 shares consisting of 300,000,000 shares of common stock and 5,000,000 “blank check” shares of preferred stock. Shares of our blank check preferred stock provide the board of directors with broad authority to determine voting, dividend, conversion, and other rights. Our board may generally issue those common and preferred shares, or convertible securities to purchase those shares, without further approval by our shareholders
So according to the SEC filing - no effective controls over internal finance ( but $24 million expended up until now )
Anyhow, looking forward to a contribution from an optimist on this stock-Are there any optimists left?
