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Going Concern and Management Plans
12 Months Ended
Dec. 31, 2011
Going Concern and Management Plans

Note 2 - Going Concern and Management Plans

 

As of December 31, 2011, the Company had a working capital deficiency and a stockholders’ deficiency of $3,788,947 and $3,686,397, respectively. The Company has not generated any revenues and has incurred net losses of $7,534,862 during the period from December 30, 2008 (inception) through December 31, 2011. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

The Company's primary source of operating funds since inception has been its stockholders and note financings. The Company intends to raise additional capital through private debt and equity investors. The Company is currently a development stage company and there is no assurance that these funds will be sufficient to enable the Company to fully complete its development activities or attain profitable operations.

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate the continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

 

Subsequent to December 31, 2011, the Company raised $1,600,500 and $650,000 through debt and equity financing, respectively, exchanged $175,000 of debt into equity, and extended the maturities of $1,610,000 of notes. The Company currently has notes payable aggregating $250,000 which are past their maturity dates.  The Company is currently in the process of negotiating extensions or discussing conversions to equity with respect to these notes. See Note 10 – Subsequent Events for additional details.