Tri-Valley Corp (fka TVLYQ)

[jonesieatl]

Wow, "Going Concern" language indeed

"Ability to Operate as a Going Concern - If we are unable to obtain additional funding our business operations will be harmed.

Like many other companies coping with the unexpected and sudden global economic “meltdown”, Tri-Valley has experienced substantial changes in its capital and inflows of capital beginning in the fourth quarter of 2008 and extending into the first quarter of 2009.

In addition to its current dependency on capital formation for operating and general and administrative expenses for fiscal 2009, Tri-Valley has several projects underway that will require capital for leasing and lease maintenance and repairs.

A primary source for this capital has been investors in the TVOG Opus I Drilling Program LP. Although we have always been successful in the past at attracting sufficient capital, we do not know – particularly in the current economic climate – if additional financing will be available when needed, or, if it is available, if it will be available on acceptable terms. Insufficient funds may prevent or limit us from implementing our business strategy.

We had a cash balance of $2.0 million as of December 31, 2008, which has subsequently decreased. Current liabilities as of December 31, 2008 were $5.15 million which has subsequently increased. In light of this and other factors, our independent accountant has included a going concern qualification in its report on our financial statements for the year ended December 31, 2008, noting that our ability to continue as a going concern is dependent on additional sources of capital and the success of our business strategy. See Note 14 to our audited
financial statements for the years ended December 31, 2008."

http://www.sec.gov/Archives/edgar/data/22551/000116267709000074/tv10k08.htm