$35,297,414 in DEBT. Have they talked about how they are going to pay this back. Even worse they are default on $2,740,000 of convertible notes plus accrued interest of approximately $813,000.
what scares me is 1.8 billion shares authorized and only 72 million outstanding shares.
*from the 10-Q.*
Going Concern
The accompanying Financial Statements have been prepared assuming the Company will continue as a going concern. The Company incurred a net loss for the three months ended March 31, 2013 of $297.559. At March 31, 2012, the Company had an accumulated deficit of $35,297,414. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. These Financial Statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. Management has taken the following steps that it believes will be sufficient to provide the Company with the ability to continue its operations
Further it has not changed in 1 year.
Liquidity and Capital Resources
The Company incurred a net loss for the three months ended March 31, 2013 of $279,559. As of March 31, 2013 we have an accumulated deficit $35,297,414. On April 1, 2013, we are in default on $2,740,000 of convertible notes plus accrued interest of approximately $813,000. These conditions raise substantial doubt as to the ability to continue as a going concern. Management has entered into an agreement with Forefront Capital to raise up to $5 million of new capital of on a best efforts basis. In addition, the Company will request the debt holders to convert their convertible notes and accrued interest. While there is no guarantee that these efforts will result in any new capital for the Company, these potential funds would have a significant impact on the Company’s ability to restructure its debt and improve its cash flow.
