NOTE 2 – GOING CONCERN
Financial Condition
Digerati’s consolidated financial statements for the nine months ended April 30, 2012 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. Digerati has incurred net losses and has accumulated a deficit of approximately $77,086,000 and a working capital deficit of approximately $2,885,000, which raises substantial doubt about the Company’s ability to continue as a going concern.