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Going Concern
6 Months Ended
Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 2 - Going Concern

The accompanying condensed 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.  For the six months ended March 31, 2014 and 2013, the Company had a loss from continuing operations of $5.1 million and $9.0 million, respectively, and negative cash flows from operations of $4.4 million and $7.3 million, respectively. As of March 31, 2014, the Company also had negative working capital of approximately $9.9 million and stockholders’ deficit of $9.5 million.

 

 Management believes that the Company’s losses in recent years have primarily been 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, who are considered necessary to support commercialization of the Company’s technologies, and significant financing costs.  Unsuccessful commercialization efforts in past fiscal years have contributed to the stockholders’ deficit as of March 31, 2014.

 

 We currently have insufficient cash to execute our business plan and continue as a going concern, in the absence of securing additional financing, and we have significant debt coming due within 12 months.  Management is therefore currently focused on raising additional capital to fund the Company’s working capital requirements, managing costs in line with estimated total revenues, including contingencies for cost reductions if projected revenues are not fully realized, as well as negotiating the restructuring of certain indebtedness currently due and payable.  However, there can be no assurance that management will be successful, that anticipated revenues will be realized, or that the Company will be able to successfully implement its plans.  In the event management is not successful in raising additional capital, or otherwise implementing its restructuring plan, the Company will be unable to continue 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.