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Going Concern
12 Months Ended
Jun. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Going Concern

NOTE B – GOING CONCERN

 

The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, which contemplates continuation of the Company as a going concern. The Company incurred a net loss from continuing operations of $288,485 and $756,376 for the years ended June 30, 2013 and 2012, respectively and as of June 30, 2013 the Company has an accumulated deficit of $8,047,685 and a working capital deficit of $1,233,352. This raised substantial doubt about to its ability to continue as a going concern.

 

In view of these matters, realization of a major portion of the assets in the accompanying consolidated balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financing requirements, and the success of its future operations.  Management believes that actions presently being taken to revise the Company’s operating and financial requirements provide the opportunity for the Company to continue as a going concern.

 

These actions include an ongoing initiative to increase sales and gross profits through a greater focus on higher margin Direct to consumer sales and branded Liberator products, and through improved production controls and reporting. To that end, on February 1, 2013 we launched a new enterprise level e-commerce platform. We believe this new e-commerce platform provides our customers with a better user experience and, as a result, should increase our Direct to consumer sales. We also plan to continue to manage discretionary expense levels to be better aligned with current and expected revenue levels. Furthermore, our plan of operation during the next twelve months continues a strategy for growth within our existing lines of business with an on-going focus on growing domestic Direct sales. We estimate that the operational and strategic growth plans we have identified will require approximately $600,000 of funding, of which we estimate that $300,000 will be provided by debt financing and the balance will be provided by a combination of cash flow from operations as well as cash on hand and cash raised through additional equity and debt financings.

 

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 secure other sources of financing and attain profitable operations.  However, management cannot provide any assurances that the Company will be successful in accomplishing these plans.  The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.