Terax Energy (TEXG)

[petermic]

Total current assets 14,223

Total current liabilities 9,723,431

Since inception, Terax has accumulated losses aggregating to $9,847,818, negative working capital of $9,709,208 and has insufficient working capital to meet operating needs for the next twelve months as of March 31, 2007, all of which raise substantial doubt about Terax's ability to continue as a going concern.

Terax has numerous litigation related matters, see Note 6 for details, which also raise significant doubt about Terax’s ability to continue as a going concern.