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2. Basis of Presentation and Significant Accounting Policies: Liquidity (Policies)
9 Months Ended
Jul. 31, 2019
Policies  
Liquidity

Liquidity

 

The Company’s current liabilities, excluding deferred revenue, exceeded current assets by $502,000 as of July 31, 2019. The note payable to a related party, G.S. Beckwith Gilbert, the Company’s significant shareholder and Chairman, was $7,700,000 at July 31, 2019, with a maturity of November 1, 2020. The Company’s stockholders’ equity was $1,010,000 at July 31, 2019. The Company had a net loss of $3,140,000 for the nine months ended July 31, 2019.

 

If the Company’s business does not generate sufficient cash flows from operations to meet its operating cash requirements, the Company will attempt to obtain external financing on commercially reasonable terms. However, the Company has received a commitment from G.S. Beckwith Gilbert, dated September 11, 2019, that, if the Company, at any time, is unable to meet its obligations through September 11, 2020, G.S. Beckwith Gilbert will provide the Company with the necessary continuing financial support to meet such obligations. Such commitment for financial support may be in the form of additional advances or loans to the Company, and/or, if deemed necessary, the deferral of principal and/or interest payments due on the existing loans. The note payable is secured by the Company’s assets.