XML 20 R7.htm IDEA: XBRL DOCUMENT v3.5.0.2
GOING CONCERN
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
NOTE 2 - GOING CONCERN

As shown in the accompanying financial statements, the Company incurred net losses of $1,628,305 and $1,469,973 for the nine-month periods ended September 30, 2016 and 2015, respectively. As of September 30, 2016, the Company’s accumulated deficit was $10,612,815. During the nine months ended September 30, 2016 and the year ended December 3l, 2015, the Company experienced negative cash flows from operations largely due to its continued investment spending for product development of game titles for smartphones and tablets that are expected to benefit future periods. Those facts, along with our lack of access to a significant bank credit facility, create an uncertainty about the Company’s ability to continue as a going concern. Accordingly, the Company is currently evaluating its alternatives to secure financing sufficient to support the operating requirements of its current business plan, as well as continuing to execute its business strategy of distributing game titles to digital distribution outlets, including mobile gaming app stores, online PC and Mac gaming portals, and opportunities for new devices such as tablet (mobile internet device) applications, mobile gaming platforms and international licensing opportunities.

 

The Company’s ability to continue as a going concern is dependent upon its success in securing sufficient financing and in successfully executing its plans to return to positive cash flows during fiscal 2016. The Company’s financial statements do not include any adjustments that might be necessary if it were unable to continue as a going concern.