XML 51 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Management Plans for Future Operations
12 Months Ended
Dec. 31, 2012
Management Plans for Future Operations  
Management Plans for Future Operations

3.              Management Plans for Future Operations

 

The primary source of financing for the Company since its inception has been through the issuance of equity and debt securities. The accompanying financial statements have been prepared assuming the Company will continue as a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. For the year ended December 31, 2012, the Company incurred a loss of $2,761,935 before giving effect to non-controlling interests and preferred stock dividends. Management recognizes it will be necessary to continue to generate positive cash flow from operations to continue as a going concern and has implemented measures to increase profitability. The Company sold certain of its operations 2011, using the sale proceeds to repay a portion of its debt. Additionally, the Company entered into agreements in August 2012 and February 2013 further reducing its outstanding debt. (see Note 10 — Exchange Agreement and Note 16 — Subsequent Events)

 

Management believes using cash flow generated by its current operations and the acquisition of new, more profitable operations in current or new lines of business and the further reduction of certain operating expenses will have a positive impact on future cash flows.