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Going Concern
3 Months Ended
Dec. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 2 - Going Concern

The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of obligations in the normal course of business. The Company generated significant net losses in previous fiscal years.  In Fiscal 2012, the Company had a net loss of $19.7 million.  As of December 30, 2012, the Company also had negative working capital and stockholders’ deficit of approximately $16.0 million and $36.2 million, respectively.

 

Management believes that the Company’s losses in recent years have been primarily the result of increased research and development expenditures related to the cyber technology, and efforts to productize those technologies and bring them to market.  These losses were augmented by insufficient revenue to support the Company’s skilled and diverse technical staff, which is considered necessary to support commercialization of the Company’s technologies.  Unsuccessful commercialization efforts in past fiscal years have contributed to the stockholders’ deficit as of December 30, 2012. As of December 30, 2012, we expended a large portion of the cash obtained from the Thermal Imaging Sale, the Revolving Credit Facility (defined below), and 2012 Notes (defined below) to fund our operations.

 

Management is focused on managing costs in line with estimated total revenues, including contingencies for cost reductions if projected revenues are not fully realized. However, there can be no assurance that anticipated revenues will be realized or that the Company will be able to successfully implement its plans.  Accordingly, the Company will need to raise additional funds to meet its continuing obligations in the near future and may incur additional future losses.  However, there can be no assurance that suitable financing will be available on acceptable terms, on a timely basis, or at all. Failure to do so and meet the obligations of our existing debt could result in default and acceleration of debt maturity, which could materially adversely effect our business and financial condition, and ultimately threaten our viability as a going concern.

 

The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.