XML 23 R8.htm IDEA: XBRL DOCUMENT v3.24.3
Going Concern
6 Months Ended
Jun. 30, 2024
Going Concern [Abstract]  
Going Concern [Text Block]

2. Going Concern

The interim condensed consolidated financial statements have been prepared in accordance with US GAAP, which assumes that the Company will be able to meet its obligations and continue its operations for the next twelve months.

The Company incurred a net loss of $3,904,847 (2023-$3,981,950) for the six months ended June 30, 2024 and as at that date had a working capital deficit of $32,986,136 (December 31, 2023-$30,390,423) and an accumulated deficit of $42,475,378 (December 31, 2023-$38,570,531) and expects to incur further losses in the development of its business.

On November 3, 2023, the funds previously held in escrow, which related to a full and final mutual release of all obligations owing to PACE, including accrued interest, in the amount of $924,500 (C$1,250,000), were released to PACE (now Alterna) and Alterna released all security it held to the Company. Prior to this full and final mutual release the obligations owing to PACE, including accrued interest were $3,930,207 (C$5,197,999). The Company transferred a 1st mortgage, originally a vendor take-back mortgage with a maturity date of August 17, 2023 to a new mortgage with a new maturity date of December 14, 2024. On January 10, 2024, the Company stopped receiving waste at its waste processing and composting operation in Belleville, Ontario Canada, to address several non-compliance matters described in orders from the Ministry of the Environment, Conservation and Parks (the "MECP"). The Company continues to seek investors to raise funds through debt or equity.

These factors cast substantial doubt as to the Company's ability to continue as a going concern, which is dependent upon its ability to obtain the necessary financing to further the development of its business, satisfy its obligations to its creditors, and upon achieving profitable operations through revenue growth. There is no assurance of funding being available or available on acceptable terms. Realization values may be substantially different from carrying values as shown.

These interim condensed consolidated financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result if the Company was unable to continue as a going concern.