Note 3 - Going Concern

9 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Substantial Doubt about Going Concern [Text Block]

NOTE

3

-

GOING CONCERN

These consolidated financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the ordinary course of business. The Company’s operations have resulted in a net loss of

$2,603,234

for the

nine

months ended

March 31, 2018 (

2017

-

$2,652,898

), and an accumulated deficit of

$65,963,423

(

June 30, 2017 -

$63,360,189

) and a working capital deficiency of

$4,491,892

as at

March 31, 2018 (

June 30, 2017 -

$3,600,986

). The Company does

not

have sufficient revenue-producing activities to fund its expenditure requirements to continue to advance researching, developing and commercializing its conductive plastics technology, ElectriPlast. During the

nine

months ended

March 31, 2018,

the Company received

$1,000,000

pursuant to a license agreement (note

13

). The Company estimates that, without further funding, it will deplete its cash resources within

twelve

months. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

These consolidated financial statements do

not

reflect adjustments that would be necessary if the going concern assumption were

not

appropriate because management believes that the actions already taken or planned will mitigate the adverse conditions and events that raise doubts about the validity of the going concern assumption used in preparing these consolidated financial statements. Management intends to raise additional capital through stock and debt issuances to finance operations. If

none

of these events occur, there is a risk that the business will fail.