Quarterly report pursuant to Section 13 or 15(d)

Management's Plans

v3.19.1
Management's Plans
3 Months Ended
Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Management's Plans

Note 7. Management’s Plans

 

On August 27, 2014, FASB issued ASU 2014-05, Disclosure of Uncertainties about an Entity’s ability to Continue as a Going Concern, which requires management to assess a company’s ability to continue as a going concern within one year from financial statement issuance and to provide related footnote disclosures in certain circumstances.

      

The Company has experienced significant operating losses over the past 3 years (2016 through 2018) with cumulative losses of approximately $11,947,000. These losses resulted in the usage of all cash proceeds from the Company’s initial public offering in 2015.

 

Under a purchase agreement dated January 16, 2019, the Company owes Craven $3,581,982 which may be converted into common stock or paid in cash by January 16, 2020.  Craven’s intent is to convert the note into common shares and has agreed to extend repayment 12 months from May 15, 2019.  

 

We believe that we have enough cash to mitigate the substantial doubt raised by our recent operating losses and satisfy our estimated liquidity needs for the 12 months from the issuance of these financial statements and avoid any substantial doubt about the Company’s ability to continue as a going concern as defined by ASU 2014-05.  However, we cannot predict, with certainty, the outcome of our actions to generate liquidity, including the availability of additional debt financing, or whether such actions would generate the expected liquidity as currently planned. Additionally, a failure to generate additional liquidity could negatively impact our ability to acquire units.