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Going Concern Uncertainty
9 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern Uncertainty

NOTE M – Going Concern Uncertainty

 

Under ASC 205-40, we have the responsibility to evaluate whether conditions and/or events raise substantial doubt about our ability to meet our future financial obligations as they become due within one year after the date that the financial statements are issued. As required by this standard, our evaluation shall initially not take into consideration the potential mitigating effects of our plans that have not been fully implemented as of the date the financial statements are issued.

 

In evaluating our ability to continue as a going concern, we have identified certain conditions that raise substantial doubt about our capacity to meet financial obligations as they become due. As of March 31, 2025, we had an accumulated deficit of $166,416,237 and a history of net losses. For the nine months ended March 31, 2025, we generated $302,506 in cash from operating activities, while investing activities resulted in a cash outflow of ($238,000). Financing activities, primarily consisting of debt reduction and balance repayments, accounted for an additional cash outflow of $150,340, leading to a net decrease in cash and cash equivalents of $85,834. We began the period with $115,747 in cash and cash equivalents and ended with a balance of $29,913. We anticipate continued negative cash flows until our operating segments generate sufficient revenue to cover expenses and debt obligations. While management is actively pursuing strategies to improve liquidity—including revenue expansion, cost optimization, and potential financing opportunities—there can be no assurance that these efforts will be successful.

 

In performing the second step of this assessment, we are required to evaluate whether our plans to mitigate the conditions above alleviate the substantial doubt about our ability to meet our obligations as they become due within one year after the date that the financial statements are issued. Our future plans include securing additional funding sources that may include establishing corporate partnerships, establishing licensing revenue agreements, issuing additional convertible debentures and issuing public or private equity securities, including selling common stock through an at-the-market facility (ATM).

 

There is no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that funds will be available through external sources. The lack of additional capital resulting from the inability to generate cash flow from operations or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material effect on the business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or they will not have a significant dilutive effect on the Company’s existing shareholders. We have therefore concluded there is substantial doubt about our ability to continue as a going concern.