
2.	Going Concern and Management's Plans

For the nine months ended September 30, 2012, we had a net loss of approximately $11,990,000 and we used cash for operations of approximately $8,259,000. We had a working capital deficit at September 30, 2012 of approximately $5,040,000. The Company will continue to rely on debt and equity to pay for ongoing operating expenses. We have the ability to raise funds by various methods including utilization of our $50 million shelf registration as well as other means of financing. On May 10, 2012, the Company's Chairman and Chief Executive Officer, Mr. Shane McMahon made a loan to the Company in the amount of $3,000,000. In consideration for the loan, the Company issued a convertible note to Mr. McMahon in $3,000,000 principal amount. The note has an annual interest rate of 4% and matures on the earlier of (i) the date on which the Company closes the next financing of equity or equity-linked securities of the Company in which at least $5,000,000 in gross proceeds is raised, and (ii) May 10, 2013. The note is convertible at any time into shares of the Company's common stock at a conversion price of $10.00 per share; provided, however, that if the Company raises capital at any time prior to the maturity of the note, the note may be converted into the securities received by the investors in the most recent capital raise (as of the date of conversion) at a price not less than $4.75, which represents the closing bid price of the Company's common stock on the trading day immediately prior to the date of the Note.

The Company has incurred significant recurring losses from operations and has relied on debt and equity financings to fund operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. We anticipate that we will need to raise additional funds to fully implement our business model and related strategies.

See Note 17, subsequent events, regarding additional financing subsequent to September 30, 2012.

The unaudited consolidated financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. The Company's independent registered public accounting firm's report of the financial statements for the year ended December 31, 2011, contained an explanatory paragraph regarding the Company's ability to continue as a going concern.