Quarterly report pursuant to Section 13 or 15(d)

Going concern

v2.4.0.8
Going concern
9 Months Ended
Sep. 30, 2014
Going Concern [Abstract]  
Going Concern [Text Block]
Note 2 – Going Concern
 
The Company has not generated any revenues, has recurring net losses, a working capital deficiency as of September 30, 2014 and December 31, 2013 of approximately $2,221,000 and $697,000, respectively, and used cash in operations of approximately $2,935,000 and $359,000 for the nine months ended September 30, 2014 and 2013, respectively. In addition, as of September 30, 2014, the Company had an accumulated deficit of approximately $6,434,000. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
 
These unaudited condensed consolidated financial statements have been prepared on the going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The ability of the Company to continue its operations is dependent on management’s plans, which include the raising of capital through debt and/or equity markets with some additional funding from other traditional financing sources, including term notes, until such time that funds provided by operations are sufficient to fund working capital requirements. The Company may need to incur additional liabilities with certain related parties to sustain the Company’s existence. If the Company were not to continue as a going concern, it would likely not be able to realize its assets at values comparable to the carrying value or the fair value estimates reflected in the balances set out in the preparation of the unaudited condensed consolidated financial statements.
 
There can be no assurances that the Company will be successful in generating additional cash from equity or other sources to be used for operations. The unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary. Based on the Company’s current resources, the Company will not be able to continue to operate without additional immediate funding. Should the Company not be successful in obtaining the necessary financing to fund its operations, the Company would need to curtail certain or all operational activities and/or contemplate the sale of its assets if necessary.