Going Concern Assessment

9 Months Ended

Dec. 31, 2016

Going Concern Assessment

Going Concern Assessment

(2)Going Concern Assessment

These Consolidated Financial Statements are presented on the basis that the Company will continue as a going concern. The going concern concept contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

As at December 31, 2016, the Company has sustained recurring losses from continuing operations, had working capital surplus of $3,173,848, and accumulated deficit of $119,892,934.  The Company’s cash position at December 31, 2016 would not be able to support day to day activities through operations as they become due and sustain operations for the next twelve months.

On March 15, 2017, the Company  entered into a non-revolving line of credit for $5.6 million.  The interest rate is variable based upon the one month LIBOR rate plus 4.0% per annum on the outstanding balance.  The non-revolving line of credit will expire on March 15, 2019 and the amounts repaid during the term of the loan may not be reborrowed. At the expiry date, all outstanding principal and interest are due.

As of the date of this filing, the Company has sufficient cash flow to continue as a going concern.