Here's two more.
Boy this board is great.
We have incurred substantial indebtedness and may be unable to service our debt.
Our indebtedness at December 31, 2011 was $16,647,378. A portion of such indebtedness reflects judicial judgments against us that could result in liens being placed on our bank accounts or assets. We are reviewing our ability to reduce this debt level due to the age and/or settlement of certain payables but we may not be able to do so. This level of indebtedness could, among other things:
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make it difficult for us to make payments on this debt and other obligations;
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make it difficult for us to obtain future financing;
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require us to redirect significant amounts of cash from operations to servicing the debt;
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require us to take measures such as the reduction in scale of our operations that might hurt our future performance in order to satisfy our debt obligations; and
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make us more vulnerable to bankruptcy or an unwanted acquisition on terms unsatisfactory to us.
Our independent auditors have issued a report stating that there is substantial doubt relating to our ability to continue as a going concern, which may impair our ability to raise additional financing.
The report of our independent auditors contained in our consolidated financial statements for the years ended December 31, 2011 and 2010 explains that we have incurred substantial operating losses and raises substantial doubt about our ability to continue as a going concern. Analysts and investors view reports of independent auditors questioning a company’s ability to continue as a going concern unfavorably. This report may make it difficult for us to raise additional debt or equity financing necessary to continue our business operations and the development of our airships. Potential investors should review this report before making a decision to invest in the Company.
