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NOTE 3 - LIQUIDITY AND GOING CONCERN CONSIDERATIONS
9 Months Ended
Sep. 30, 2018
Note 3 - Liquidity And Going Concern Considerations  
(3) LIQUIDITY AND GOING CONCERN CONSIDERATIONS

(3) LIQUIDITY AND GOING CONCERN CONSIDERATIONS

 

Our condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We sustained a net loss of approximately $2.1 million for the nine months ended September 30, 2018 and have an accumulated deficit of approximately $4.0 million and a negative working capital of approximately $2.4 million at September 30, 2018, inclusive of current indebtedness. These conditions raise substantial doubt about our ability to continue as a going concern.

 

Failure to successfully continue to grow restaurant operation revenues could harm our profitability and materially adversely affect our financial condition and results of operations. We face all of the risks inherent in a new business, including the need for significant additional capital, management’s potential underestimation of initial and ongoing costs, and potential delays and other problems in connection with establishing and opening restaurant operations.

 

We are continuing our plan to further grow and expand restaurant operations and seek sources of capital to pay our contractual obligations as they come due. Management believes that its current operating strategy will provide the opportunity for us to continue as a going concern as long as we are able to obtain additional financing; however, there is no assurance this will occur. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

 

The independent auditors’ report on our consolidated financial statements for the years ended December 31, 2017 contained an explanatory paragraph expressing substantial doubt as to our ability to continue as a going concern.