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Going Concern
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

2. GOING CONCERN

 

The Company has incurred and continues to incur, losses from operations. For the year ended December 31, 2019 the Company incurred a net loss of $ 1,238,976. For the period ended December 31, 2018 the Company incurred a net income of $918,238, however that income had a one- time increase in income of $1,272,123 for renegotiated debt. That aside, the Company had a loss of $353,885. In addition, certain notes payable have come due and the note holders are demanding payment.

 

Management is very actively working to cure these situations. It has implemented major plans to for the future growth and development of the Company. Management is in the process of renegotiating more favorable repayment terms on the notes payable and the Company anticipates that these negotiations will result in extended payment plans.

 

Historically, the Company has financed its operations primarily through private financing. It is management’s intention to finance operations during 2020 primarily through increased sales although there will still be a need for additional equity financing. In addition, management is actively seeking out mergers and acquisitions which would be beneficial to the future growth of the Company. There can be no assurance, however, that this financing will be successful and the Company may be required to further reduce expenses and scale back operations.

 

As described in Note 4, the Company is currently in default on a $50,000 loan from a stockholder.

 

The consolidated financial statements presented above and the accompanying Notes have been prepared on a going concern basis, which contemplates the realization of assets and discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments to reflect possible future effects on the recoverability and classification of assets, or the amounts and classification of liabilities that may result from the outcome of any extraordinary regulatory action, which would affect our ability to continue as a going concern.

 

Due to the conditions and events discussed above, there is substantial doubt about the Company’s ability to continue as a going concern.