XML 34 R8.htm IDEA: XBRL DOCUMENT v2.4.1.9
1. Introduction
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Note 1. Introduction

Introduction:

 

Nature of business

 

Shoal Games Ltd. (previously Bingo.com, Ltd.) (the "Company") was incorporated on January 12, 1987, under the laws of the State of Florida as Progressive General Lumber Corp. On January 22, 1999, the Company changed its name to Bingo.com, Inc. On April 7, 2005, Bingo.com, Inc. completed a merger with its wholly- owned subsidiary Bingo.com, Ltd. The surviving corporation of the merger is Bingo.com, Ltd. which is domiciled in Anguilla, British West Indies.  All of the outstanding common shares of Bingo.com, Ltd. were registered by Bingo.com, Inc. and Bingo.com, Ltd. under an S-4 registration statement dated March 3, 2005.  The S-4 registration statement became effective on March 8, 2005. The principal reason for Bingo.com, Inc.'s merger with its subsidiary Bingo.com, Ltd. was to facilitate Bingo.com, Inc.'s reincorporation under the International Business Companies Act of Anguilla, B.W.I. Anguilla, B.W.I. is a corporate tax- free jurisdiction.  Effective Thursday, April 7, 2005, the shares of Bingo.com, Ltd. began trading under the new ticker symbol "BNGOF". Subsequent to the year ended December 31, 2014, the Company changed its name to Shoal Games Ltd. and changed its ticker symbol to "SGLDF".

 

During the year ended December 31, 2014, the Company was in the business of marketing games and entertainment based on the game of bingo through its Internet portal, www.bingo.com and earned revenue from selling advertising and providing games of chance to its registered subscribers.

 

Effective December 31, 2014, the Company sold its Internet portal, www.bingo.com and will focus on the continued development and marketing of its social bingo game, Trophy Bingo.

 

Continuing operations

 

These consolidated financial statements have been prepared on the going concern basis, which presumes the realization of assets and the settlement of liabilities in the normal course of operations.  The application of the going concern basis is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or, in the absence of adequate cash flows from operations, obtaining additional financing.  The Company has reported losses from operations for the year ended December 31, 2014 and 2013, and has an accumulated deficit of $15,441,454 as at December 31, 2014.  This raises substantial doubt about the Company's ability to continue as a going concern.

 

In view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

 

Management continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's financial position, and enable the timely discharge of the Company's obligations.  If management is unable to identify sources of additional cash flow in the short term, it may be required to further reduce or limit operations.