Note 2. LIQUIDITY

As reflected in the Company’s consolidated financial statements, the Company had a net loss for the year ended June 30, 2016. Revenue from the Company’s shipping agency service business segment was in a decreasing trend due to higher overhead costs and a decreased number of ships served. In addition, the Company terminated the vessel acquisition agreement in late 2015, which also reduced the Company’s revenue source from the shipping and chartering service segment for the remaining period of fiscal year 2016.

In assessing its liquidity, management monitors and analyzes the Company’s cash on-hand, its ability to generate sufficient revenue sources in the future and its operating and capital expenditure commitments. The Company plans to fund continuing operations through identifying new prospective joint venture and strategic alliance opportunities for new revenue sources and reducing costs to improve profitability and replenish working capital.

Management believes that the foregoing measures collectively will provide sufficient liquidity for the Company to meet its future liquidity and capital obligations.