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GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS
6 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS

Since inception, the Company has financed its operations primarily through equity financings and advances from related parties. As of March 31, 2015, the Company had an accumulated deficit of $7,452,186. During the six months ended March 31, 2015 and 2014, the Company incurred net losses of $981,186 and $75,549, respectively, and used cash in operating activities of $119,332 and $101,779, respectively. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

 

Subsequent to March 31, 2015, the Company continues to incur net losses and use cash in operating activities. Funds from the Company's private placement offering completed during the fourth calendar quarter of 2014 have improved the Company's current cash position and working capital constraints; however, the funds are not sufficient to satisfy its current obligations.

 

The Company recognizes it will need to raise additional capital in order to fund operations, meet its payment obligations and execute its business plan. There is no assurance that additional financing will be available when needed or that management will be able to obtain financing on terms acceptable to the Company and whether the Company will generate revenues, become profitable and generate positive operating cash flow. If the Company is unable to raise sufficient additional funds on favorable terms, it will have to develop and implement a plan to further extend payables and to raise capital through the issuance of debt or equity on less favorable terms until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful. If the Company is unable to obtain financing on a timely basis, the Company could be forced to sell its assets, discontinue its operations and/or pursue other strategic avenues to commercialize its technology.

 

Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and the satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the condensed consolidated financial statements do not necessarily represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.