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ABILITY TO CONTINUE AS A GOING CONCERN
3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
NOTE 7 - ABILITY TO CONTINUE AS A GOING CONCERN

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the three months ended March 31, 2013, the Company incurred net losses of $356,000. In addition, at the quarter ended March 31, 2013 and year ended December 31, 2011, the Company has an accumulated deficit of $28,464,000 and $28,108,000, respectively. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

The Company’s continuation as a going concern is contingent upon its ability to obtain additional financing or refinance existing debt and to generate revenues and cash flow to meet its obligations on a timely basis. Management believes that sales revenues for 2012 and 2011 were considerably less than earlier anticipated primarily due to circumstances which have been corrected or are in the process of being corrected. Management expects that marine, railroad and trucking sales should show significant increases in 2013 over what has been generated in the past, as a result of the successful outcome of long term client demonstrations from several extremely large new clients that took place during 2012 and are taking place during 2013.

 

The Company has been able to generate working capital in the past through private placements and issuing promissory notes and believes that these avenues will remain available to the Company if additional financing is necessary. Management also believes it will be able to modify the terms of its current debt should the need arise. No assurance can be made that any of these efforts will be successful.