FEC Resources Inc. (FECOF)

[irishintelligence]

To the extent necessary, the Company has relied on its ability to
raise funds via dispositions of quantities of its shareholdings in FEP to PXP under terms that
are consistent with the best interests of shareholders, in order to finance its operations. The
Company has been successful in disposing quantities of its shareholdings in FEP in previous
fiscal years. However, there can be no assurance the Company will continue to be able to
dispose of quantities of its shares in FEP under suitable terms.

Management has concluded that the combination of these circumstances casts substantial
doubt on the ability of the Company to continue as a going concern; therefore, the Company
may be unable to realize its assets and discharge its liabilities in the normal course of
business.


Did FECOF ask anyone beyond PXP to purchase the 1,000,000 shares of Forum?

How is FECOF not a going concern? They have over $400,000 in cash and an annual burn of $150ish. That's 2+ years of cash to operate the business.


A going concern is a business that functions without the threat of liquidation for the foreseeable future, usually regarded as at least within 12 months. It implies for the business the basic declaration of intention to keep running its activities at least for the next year, which is a basic assumption to prepare financial statements considering the conceptual framework of the IFRS. Hence, the declaration of going concern means that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations.