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Note 3 - Going Concern
9 Months Ended
Sep. 30, 2012
Going Concern [Text Block]
3.      Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

As reflected in the accompanying consolidated financial statements, the Company had a cash balance of $286 at September 30, 2012 and experienced reduced revenues for the three and nine months ended September 30, 2012 compared to the same periods in 2011, resulting in a net loss and net cash used in operating activities for the interim periods then ended.  Additionally, during October 29th and 30th the Company’s Carlstadt, New Jersey facility experienced significant damage due to Hurricane Sandy. The Company will incur additional expenses for the replacement/repair of damaged equipment and to continue to service its client base until the facility is fully operational.  It is anticipated that the additional costs incurred will exceed the insurance proceeds; the extent to which is uncertain.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.  While the Company is attempting to generate sufficient revenues, the Company’s cash position may not be sufficient enough to support the Company’s daily operations.  The Company will require additional capital during November and December to continue as a going concern.  The Company is in active discussions with its primary lender, largest stockholder and other potential funding sources concerning possible ways of addressing its liquidity and working capital needs, including a possible bridge loan facility and other forms of debt or equity financing.  The Company will need to raise additional equity or debt financing (whether from its primary lender, largest stockholder or other sources) to meet its liquidity needs for the next twelve months. The Company’s largest stockholder has purchased $1,500 of the Company’s 10% Convertible Note on November 21, 2012 and has committed to an additional $2,500 funding, if necessary, subject to certain conditions including a standard material adverse change clause.  If the additional commitment is realized management believes the current cash needs will be satisfied, but there can be no assurances to that effect.  Management believes that the actions presently being taken to further implement its business plan and generate sufficient revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate sufficient revenues and in its ability to raise additional funds, there can be no assurances to that effect.  The ability of the Company to continue as a going concern is dependent upon the Company’s ability to meet its financing arrangements and to further implement its strategy and generate sufficient revenues.

The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.