XML 33 R9.htm IDEA: XBRL DOCUMENT v3.19.2
Going Concern
3 Months Ended
Jul. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

NOTE 3 — GOING CONCERN

 

The accompanying condensed consolidated 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. The Company has incurred significant operating losses since its inception. As of July 31, 2019, the Company had cash of approximately $3.5 million, working capital of approximately $3.9 million, and an accumulated deficit of approximately $29.6 million. The Company had net loss and cash used in operating activities of approximately $1.3 million and $1.1 million, respectively, during the three months ended July 31, 2019. As a result of the utilization of cash in its operating activities, and the development of its assets, the Company has incurred losses since it commenced operations. The Company’s primary source of operating funds since inception has been equity financings. These matters raise substantial doubt about the Company’s ability to continue as a going concern for the twelve months following the issuance of these financial statements.

 

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

 

On June 19, 2019, the Company filed a Certificate of Designations, Preferences and Rights of the Series F Preferred and sold 1,250 Series F Preferred units for an aggregate purchase price of $2,500,000 (see Note 8).

 

There can be no assurance that the Company will be able to raise additional capital or if the terms will be favorable.