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UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN
9 Months Ended
Oct. 31, 2011
UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN
3. UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

 

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business.  However, the Company has incurred operating losses and has an accumulated deficit of $1,690,922 as of October 31, 2011. In addition, the Company has a total stockholders’ equity of $23,232 and generated a negative net cash flow operating activities for the nine months ended October 31, 2011 of $302,232.

 

The financial statements do not include any adjustments relating to the recoverability and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

To date the Company has funded its operations from both internally generated cash flow and external sources, and the proceeds available from the private placement of convertible notes which have provided funds for near-term operations and growth. The Company will pursue additional external capitalization opportunities, as necessary, to fund its long-term goals and objectives. Management has continued to take action to strengthen the Company's working capital position which will allow the Company to generate sufficient cash to meet its operating needs through January 31, 2012 and beyond. The Company has implemented a cost savings initiative to reduce operating expenses and is currently exploring alternative sources of equity and debt financing. We may seek to raise such capital through public or private equity financings, partnerships, joint ventures, disposition of assets, debt financings, bank borrowings or other sources of financing. In addition, the losses the Company has generated to date in 2011, are primarily the result of additional costs incurred in connection with  our acquisition of Aligned Healthcare, Inc. and physician costs added in anticipation of new revenue generated through new hospitalist and care management contracts.

 

No assurances can be made that management will be successful in achieving its plan. If the Company is not able to raise substantial additional capital in a timely manner, the Company may be forced to cease operations.