NanoViricides Inc. (NNVC)

[loanranger]

Not your fault...it's a trick in the language.

By rule the company needs to have, or say they have, enough cash to last a full year from the day the report is filed in order to file on a going concern basis***. That is the reason for the statement. It doesn't mean that they expect to use up their current cash by that date but rather that their current cash will last through that date. I can probably say that another way but it won't be any less confusing :o)

***This "going concern" stuff has always been confusing. When a company CAN'T make the vouching statement and when the auditors point to that failure in their annual opinion it requires the financials to be prepared a different way. Basically a company's assets are revalued to a liquidation value but it's a technical accounting issue, not an assurance or even an indicator that bankruptcy is imminent, although that can be the case. I imagine that some pretty intense discussions between auditors and clients center on this issue.

"The Company’s financial statements for the interim period ended March 31, 2018 have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business."