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GOING CONCERN
6 Months Ended
Jun. 30, 2016
GOING CONCERN  
GOING CONCERN

NOTE 2. GOING CONCERN.

 

The accompanying Consolidated Financial Statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has suffered recurring losses, negative working capital and is dependent upon raising capital to continue operations. The Company has incurred losses resulting in an accumulated deficit of $10,855,823 and $10,634,797 as of June 30, 2016 and December 31, 2015, respectively.

 

The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to generate additional working capital by increasing revenue as a result of new sales and marketing initiatives and by raising additional capital from investors.

 

Management's plans with regards to these issues are as follows:

 

  • Improving our Georgetown 14 Cinemas investment.
  • Expanding revenues by purchasing, or otherwise acquiring, independent businesses.
  • Raising new investment capital, either in the form of equity or loans, sufficient to meet the Company's operating expenses until the revenues are sufficient to meet operating expenses on an ongoing basis.
  • Leasing or developing our Georgetown 14 Cinema, or selling or developing a portion of its parking area.
  • Locating and merging with other profitable private companies where the owners are seeking liquidity and exit plans.
  • Maintaining the Company mission of minimal overhead costs while sourcing services in consulting roles to keep overhead costs at a minimum.

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually attain profitable operations. The Company’s President and Chief Financial Officer, Norman Frohreich, died on August 16, 2016, and Mr. Frohreich was our only executive actively involved in pursuing many of the plans described above. His death may have a material effect on our ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.