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Going Concern
3 Months Ended
Jul. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

NOTE 3 — GOING CONCERN

 

The accompanying 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. As of July 31, 2020, the Company had cash of approximately $1.7 million, working capital of approximately $2.1 million, and an accumulated deficit of approximately $32.5 million. The Company had a net loss and cash used in operating activities of approximately $957,000 and $1.0 million, respectively, as of July 31, 2020. 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. As of July 31, 2020, the Company had sufficient cash to fund its operations for approximately 6 to 9 months, prior to its merger with NPRC subsequent to the end of the quarter, and expected that it would be required to raise additional funds to fund its operations thereafter. 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.

 

Subsequent to the close of the quarter ended July 31, 2020, on August 11, 2020, the Company closed on a merger with Acquisition Corp and NPRC, together with a concurrent equity placement, under which the Company added approximately $7.9 million of net proceeds to its cash reserves. Upon receipt of the additional proceeds from the equity raise on August 11, 2020, the Company believes, but it cannot be certain it has adequate resources to fund its operations along with its long-term exploration activities for a period of at least 12 months from the date these financial statements are available until additional cash is raised.

 

The 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.