Not here to bash but somethings are of concern on the 10K.
ITEM 3 – LEGAL PROCEEDINGS.
On September 15, 2016, LG Capital, LLC filed a lawsuit against the Company in the County of Kings, in the Supreme Court of the State of New York (index number 516298/2016). The filing alleges that the Company has defaulted on a number of unpaid loans from LG Capital to the Company with the total owing and due including principal and interest of $279,730.56. The Company has not counter claimed but believes that LG Capital unlawfully attempted to convert some of the loans to common stock of the Company has filed an injunction against the Company transfer agent to block LG Capital from such a conversion. In addition, the Company negotiated in good faith with LG Capital to settle the debt but to no avail.
Net Loss
The Company incurred a net loss of $1,464,122 for the year ended September 30, 2017 compared to a net loss of $318,436 for the year ended September 30, 2016. Higher general and administrative expense plus increased other expenses attributed to the higher loss in 2017 over 2016.
Financial Condition
Cash, Cash Flows, and Working Capital
The Company had a cash balance of $67,353 and a working capital deficit of $1,025,703 at September 30. 2017 as compared to a net cash balance of $1,804 and a working capital deficit of $565,365 at September 30, 2016. The decrease in working capital is primarily attributable loss in 2017 plus increase in current liabilities through short term debt borrowings of $455,350 plus an increase in accrued interest of $70,537.
