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MANAGEMENT PLANS
12 Months Ended
Dec. 31, 2024
MANAGEMENT PLANS  
MANAGEMENT PLANS

NOTE 2. - MANAGEMENT PLANS

 

The Company reported operating loss of $896,046 in 2024 and operating loss $1,904,277 in 2023, net loss of $1,647,918 in 2024 and net loss of $1,854,524 in 2023, and stockholders’ deficiencies of $10,193,488 and $8,551,861 at December 31, 2024 and 2023, respectively. The Company has a working capital deficit of approximately $ 8.8 million at December 31, 2024.  These factors raise initial doubt about the entity’s ability to continue as a going concern.

 

The Company’s mission is to drive stockholder value by developing and bringing to market automated, cost effective, and innovative cybersecurity technologies. The Company’s strategy is to build its business by designing, developing, and marketing IT security-based products and solutions that fill technology gaps in cybersecurity.

 

The Company's goal is to increase sales and generate cash flow from operations on a consistent basis. The Company’s business plans require improving the results of its operations in future periods. The Company has renegotiated the terms of some certain obligations, using operational cash flow to pay down balances and extending terms, and provided financing with the issuance of new loans.

 

The Company believes the capital resources generated by the improving results of its operations as well as cash available under its factoring line of credit and from additional related parties and third-party loans, if needed, provide sources to fund its ongoing operations and to support the internal growth of the Company. The Company may need to extend existing debt agreements in order to provide resources for other purposes. If the Company experiences significant growth in its sales, the Company believes that this may require it to increase its financing line, finance additional accounts receivable, or obtain additional working capital from other sources to support its sales growth.

 

The Company plans to continue to evaluate alternatives which may include continuing to renegotiate the terms of other notes, seeking conversion of the notes to shares of common stock and seeking funds to repay the notes. The Company continues to evaluate repayment of our remaining notes payable based on its cash flow.

 

As a result, there is substantial doubt about the Company’s ability to continue as a going concern within one year of issuance of the financial statements.