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2. GOING CONCERN AND MANAGEMENT?S LIQUIDITY PLANS
3 Months Ended
Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
2. GOING CONCERN AND MANAGEMENT?S LIQUIDITY PLANS

NOTE 2 –GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

 

As of March 31, 2017, the Company had cash of $2,228,708 and working capital of $1,352,254. However, during the three months ended March 31, 2017, the Company used net cash in operating activities of $2,473,430.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

In the first quarter of 2017, the Company received $4,443,196 from the exercise of common stock warrants. It is anticipated that the proceeds from the warrant exercise will provide the Company with cash sufficient to fund operations through August 2017. (See Subsequent Events-Note 11) 

 

The Company's primary source of operating funds since inception has been cash proceeds from private placements of common stock, proceeds from the exercise of warrants and options and issuance of notes payable. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company will require additional financing to fund future operations.

 

Management’s plans with regard to these matters encompass the following actions: 1) obtain funding from new and potentially current investors to alleviate the Company’s working deficiency, and 2) implement a plan to generate sales. The Company’s continued existence is dependent upon its ability to translate its user base into sales. However, the outcome of management’s plans cannot be ascertained with any degree of certainty.

 

Accordingly, the accompanying unaudited condensed interim 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 satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The unaudited condensed interim financial statements do not include any adjustment that might result from the outcome of this uncertainty.