NOTE B - MANAGEMENT'S PLANS	12 Months Ended
Dec. 31, 2021
Notes
NOTE B - MANAGEMENT'S PLANS	NOTE B — MANAGEMENT’S PLANS On August 27, 2014, FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances. We have historically experienced significant operating losses with cumulative losses from inception of approximately $8 million. These losses have been reduced by a positive working capital position of approximately $1,114,000 at December 31, 2021, of which approximately $269,000 of our current liabilities is owed to our officers and directors, and approximately $905,000 of our current liabilities is deferred revenue. Our officers and directors, who are also major shareholders, have informally agreed to not seek payment of any of the amounts owed to them if such payment would jeopardize our ability to continue as a going concern. The deferred revenue represents advance payments for services from our customers which will be satisfied by our delivery of services in the normal course of business and will not require settlement in cash. We started a number of initiatives in 2017 which included revenue enhancement initiatives, cost saving initiatives, the sale of excess assets and an orderly exit from the CLEC business. We were successful with our revenue enhancement and cost saving initiatives and in selling certain excess assets in the third quarter of 2018 and the first quarter of 2019, as well as effecting an orderly exit from the CLEC business through the sale of substantially all of our wholly owned subsidiary’s CLEC operating assets. As a result of these initiatives, we generated positive cash flow from its operating activities of approximately $1,419,000 and $988,000 for the years ended December 31, 2021 and 2020, respectively. In addition, we were able to generate net income of approximately $893,000 and $1,072,000 for the years ended December 31, 2021 and 2020, respectively. Management expects that the success of these initiatives will provide us with sufficient liquidity for us to operate for the next 12 months. As a result of the revenue enhancement initiatives, the cost saving initiatives, the excess asset sales and the successful exit from the CLEC business, we have been able to significantly improve our working capital position and alleviate any substantial doubt about our ability to continue as a going concern as defined by ASU 2014-05. We believe that the actions discussed above mitigate the substantial doubt raised by our prior operating losses and satisfy our estimated liquidity needs 12 months from the issuance of the financial statements. However, we cannot predict, with certainty, the outcome of our actions to generate additional liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. Additionally, a failure to generate additional liquidity could negatively impact our ability to effectively execute our business plan.

NOTE B - MANAGEMENT'S PLANS

12 Months Ended

Dec. 31, 2021

NOTE B — MANAGEMENT’S PLANS

On August 27, 2014, FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances.

We have historically experienced significant operating losses with cumulative losses from inception of approximately $8 million. These losses have been reduced by a positive working capital position of approximately $1,114,000 at December 31, 2021, of which approximately $269,000 of our current liabilities is owed to our officers and directors, and approximately $905,000 of our current liabilities is deferred revenue. Our officers and directors, who are also major shareholders, have informally agreed to not seek payment of any of the amounts owed to them if such payment would jeopardize our ability to continue as a going concern. The deferred revenue represents advance payments for services from our customers which will be satisfied by our delivery of services in the normal course of business and will not require settlement in cash.

We started a number of initiatives in 2017 which included revenue enhancement initiatives, cost saving initiatives, the sale of excess assets and an orderly exit from the CLEC business. We were successful with our revenue enhancement and cost saving initiatives and in selling certain excess assets in the third quarter of 2018

and the first quarter of 2019, as well as effecting an orderly exit from the CLEC business through the sale of substantially all of our wholly owned subsidiary’s CLEC operating assets.

As a result of these initiatives, we generated positive cash flow from its operating activities of approximately $1,419,000 and $988,000 for the years ended December 31, 2021 and 2020, respectively. In addition, we were able to generate net income of approximately $893,000 and $1,072,000 for the years ended December 31, 2021 and 2020, respectively.

Management expects that the success of these initiatives will provide us with sufficient liquidity for us to operate for the next 12 months.

As a result of the revenue enhancement initiatives, the cost saving initiatives, the excess asset sales and the successful exit from the CLEC business, we have been able to significantly improve our working capital position and alleviate any substantial doubt about our ability to continue as a going concern as defined by ASU 2014-05. We believe that the actions discussed above mitigate the substantial doubt raised by our prior operating losses and satisfy our estimated liquidity needs 12 months from the issuance of the financial statements. However, we cannot predict, with certainty, the outcome of our actions to generate additional liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. Additionally, a failure to generate additional liquidity could negatively impact our ability to effectively execute our business plan.