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Liquidity and Going Concern
12 Months Ended
Dec. 31, 2012
Liquidity and Going Concern [Abstract]  
Liquidity and Going Concern

Note 5. Liquidity and Going Concern

 

At and for the period ended December 31, 2012, the Company had a net working capital deficiency of approximately $5,600,000 and incurred negative cash flows from operating activities of approximately $1,600,000. The Company recognizes that the timing of the realization of its remaining receivables from customers and its vendor and debt obligation payments will not allow the Company to generate positive working capital in the near future. In addition, the Company’s operating subsidiary, Wood Energy, has declared bankruptcy. We will need to raise additional funds in order to meet working capital requirements. We cannot be certain that we will be able to obtain additional financing on favorable terms or at all. If we are unable to raise necessary capital, our growth and operations likely will be curtailed. In addition, if we raise capital by selling additional shares of stock, percentage ownership of current shareholders in Banyan will be diluted.

 

The term loan and lines of credit from the bank, for which we are in default, (see Note 9) may not be fully satisfied from the sale of all assets of Wood Energy. Any unsatisfied amount is guaranteed by Banyan and would require additional capital raises to meet the obligations of this guarantee. We cannot be certain that we will be able to obtain the funding required to meet this obligation. If we are unsuccessful in our attempts to raise additional capital, there would be a material adverse effect on the Company.