FROM THE JUNE 2013 10Q -
This stock was on the brink of bankruptcy until this financing came into place. Even with this financing the amount of convertible debt that is about to incur is going to be substantial. For those that think this thing can run to pennies or copper has another thing coming for them. The amount of dilution that will result in this toxic financing will kill the stock - read below. i even put the best parts in bold.
Liquidity and Capital Resources
At June 30, 2013, we had $88 in cash, as opposed to $6,910 in cash at December 31, 2012. Total cash requirements for operations for the six month period ended June 30, 2013 was $272,563. As a result of certain measures implemented to reduce corporate overhead, management estimates that cash requirements through the end of the fiscal year ended December 31, 2013 will be between $2.0 million to $5.5 million. As of the date of this Report, we do not have available resources sufficient to cover the expected cash requirements through the end of the third quarter of 2013 or the balance of the year. As a result, there is substantial doubt that we can continue as an ongoing business without obtaining additional financing. Management's plans for maintaining our operations and continued existence include selling additional equity securities and borrowing additional funds to pay operational expenses. There is no assurance we will be able to generate sufficient cash from operations, sell additional shares of Common Stock or borrow additional funds. Our inability to obtain additional cash could have a material adverse effect on our financial position, results of operations and our ability to continue its existence. If our losses continue and we are unable to secure additional financing, we may ultimately be required to seek protection from creditors under applicable bankruptcy laws. We had total current assets of $88 as of June 30, 2013. This was a decrease of $6,822, or 99%, as compared to current assets of $6,910 as of December 31, 2012. The decrease was primarily attributable to operation expense of the Company.
We had total assets of $338,051 as of June 30, 2013. This was a decrease of 42,788, or 11.2%, as compared to total assets of $380,839 as of December 31, 2012. The decrease was primarily attributable to depreciation on fixed assets of $35,966.
We had total current liabilities of $3,048,565 as of June 30, 2013. This was a decrease of $80,049, or 2.6%, as compared to current liabilities of $3,128,614 as of December 31, 2012. The net decrease was attributable to a decrease in Notes payable due to the conversion of loans into common stock.
Our financial condition raises substantial doubt about our ability to continue as a going concern. Management's plan for our continued existence includes selling additional stock through private placements and borrowing additional funds to pay overhead expenses while maintaining marketing efforts to raise our sales volume. Our future success is dependent upon our ability to achieve profitable operations, generate cash from operating activities and obtain additional financing. There is no assurance that we will be able to generate sufficient cash from operations, sell additional shares of common stock or borrow additional funds. Our inability to obtain additional cash could have a material adverse effect on our financial position, results of operations and our ability to continue as a going concern.
