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Going Concern
3 Months Ended
Jun. 30, 2012
Going Concern

Note 8 – Going Concern

 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  For the nine months ended June 30, 2012 and 2011, we incurred net losses of $878,926 and $756,617, respectively.  As of June 30, 2012 and September 30, 2011, we had shareholder deficits of $1,449,831 and $1,463,673, respectively, and negative cash flows. These factors, and negative cash flows, raise substantial doubt about our  ability to continue as a going concern. 

 

 

Our continuation as a going concern is dependent upon our ability to generate sufficient cash flow to meet our obligations on a timely basis, to obtain additional financing or refinancing as may be required, to develop commercially viable products and processes, and ultimately to establish profitable operations.  We have financed operations primarily through the issuance of equity securities and debt and through some limited operating revenues.  Until we are able to generate positive operating cash flows, additional funds will be required to support our operations.  We will need to acquire immediate additional funding by September 2012 to continue our operations.  The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern.