Are banks in the US actually lending????? I think in this climate no.
Or a private placement ........DILUTION .....would this explain the sp dropping by half
Although we generated a net income for the three months ended March 31, 2010 of $109,485 and had a reduced our deficit in working capital to $56,364 at March 31, 2010, we do not believe that one profitable quarter is sufficient to assert that this source of revenue is or will continue to cover our operating costs. We believe that we have achieved a successful launch of our Cobroxin product and that its acceptance in the market place will continue to expand. Although we have raised $1,500,000 in capital during the quarter to implement our Cobroxin launch and have managed to reduce our deficit in working capital to near breakeven, we understand that we will need even more capital to promote, acquire and support logistics as our market penetration expands. For these reasons, specifically, limited track record of profitability and continued demand for capital to implement our Cobroxin product strategy, our ability to continue as a going concern is still in doubt.
Based on our current plans, we anticipate that revenues earned from Cobroxin product sales will be the primary source of funds for operating activities. In addition to existing cash and cash equivalents, we may rely on bank borrowing, if available, or sales of securities to meet our capital and liquidity needs for the next 12 months. Additional capital may be sought to fund the expansion of our product line and marketing efforts, which may also include bank borrowing, or a private placement of securities.
