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Liquidity and Going Concern
9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Liquidity and Going Concern

Note 3 - Liquidity and Going Concern

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our financial statements have been prepared on the basis that it is a going concern, which contemplates the realization of additional income and the satisfaction of liabilities in the normal course of business. The Company sustained net losses of $1,300,340 in the first nine months of the year, and our operating activities provided $25,882 in the first nine months of the year. Our net loss was caused in part by a non-cash warrant expense of $37,480, which has been revalued at September 30, 2016, and prepaid legal services valued at $675,946. The Company had a working capital deficit of $493,638, stockholders’ deficit of $531,446, and accumulated deficit of $3,808,486 at September 30, 2016. This raises substantial doubt about its ability to continue as a going concern. The Company is dependent upon its ability to generate revenues and its ability to continue receiving investment capital and loans from third parties to sustain its current level of operations. The Company is in the process of securing working capital from investors for common stock, convertible notes payable, and/or strategic partnerships. No assurance can be given that the Company will be successful in these efforts. Per the Joint Venture agreement, the LLC has committed to provide the Company with all its working capital needs, the LLC’s commitment has decreased much of the risk of going concern.

 

The financial statements have been prepared assuming that the Company will continue to function as a going concern, and do not include adjustments that might result from the outcome of this uncertainty. Based on the Company’s operating plan, existing working capital at September 30, 2016 was insufficient to meet cash requirements to support Company operations through December 31, 2016.

 

The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.