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1. General
3 Months Ended
Aug. 31, 2012
Accounting Policies [Abstract]  
1. General

 

The accompanying unaudited financial statements include all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods. All such adjustments are of a normal recurring nature. The statements have been prepared in accordance with the requirements for Form 10–Q and, therefore, do not include all disclosures or financial details required by generally accepted accounting principles. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10–K for the year ended May 31, 2012.

 

The accompanying financial statements have been prepared on a going concern basis which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability of assets and the satisfaction of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

As shown in the financial statements, the Company incurred a loss from operations for the quarter ended August 31, 2012, has a stockholders’ deficiency and a working capital deficiency. These conditions raise substantial doubt about the Company’s ability to continue as a going concern as there can be no assurance that the Company will be able to grow revenues or secure sufficient additional financing to meet future obligations.

 

The Company’s plan and ability to continue as a going concern is primarily dependent upon timely fulfillment of purchases of raw material and identification of alternative suppliers and packagers.  Raw material production delays and regulatory recertification of packaging facilities have resulted in order fulfillment lead times of greater than six months.   Ongoing supply and production disruptions prevented fulfillment of $100,000 of customer purchase orders for the quarter ended August 31, 2012. The results of operations for the interim periods are not necessarily indicative of results to be expected for a full year's operations.

 

Pursuant to a stock purchase agreement dated August 10, 2012, the Company agreed to sell and issue 8,645,533 shares of common stock for an aggregate purchase price of $200,000 to its Chairman of the Board. The sale was completed on September 24, 2012. 

At August 31, 2012, inventory of $161,718 consisted of $54,776 of finished goods and $106,942 of raw materials.