China Zhong QI Hldgs. Ltd. (CHZQ)

[levelnever]

Looking for guidance on this one. been checking it out for a while, like the simple green product concept of I Green, but I just read through the latest IVOT financials. Came upon the going concern below:

As of June 30, 2009, the Company had a net loss, a negative cash flow from operations, as well as negative working capital. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Therefore, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn, is dependent upon the Company’s ability to raise capital and/or generate positive cash flow from operations.

I'm a little concerned as this doesn't seem to connect up with the statements made by the CEO who said the company was debt free. I'm pretty new to the game, but the going concern implies debt and the CEO implies no debt. Which one is it? Any help would be appreciated.