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Going Concern
12 Months Ended
Aug. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

NOTE 3 - GOING CONCERN

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred losses from operations over the past several years and anticipates additional losses in fiscal 2014 and prior to achieving breakeven.

 

During fiscal 2013, we acquired Dotolo Research Corporation and Angels of Mercy, Inc. While these acquisitions greatly increase the value of our Company, collectively they are not fully cash flow positive. AOM is currently cash flow positive but alone is unable to support the corporate overhead or the capital requirements of our other subsidiary, DRC. We anticipate that we will require approximately $1,000,000 to operate through August 31, 2014. Approximately $350,000 will be required to fund corporate overhead including all debt services with the balance to invest into DRC for the procurement of raw material inventory, manufacturing production and future product revisions at DRC. Approximately $250,000 will allow DRC to become current with its raw material vendors, procure new inventory, and allow the company to manufacture and sell hardware products. With the $250,000 in funding, we will be able to re-start all manufacturing and sell hardware products to fulfill eighty three (83) existing hardware customer orders within three (3) months. During the following three months we expect to increase our hardware sales to include new hardware clients. We expect our total hardware sales at the end of this six month period to be approximately $600,000. The remaining $400,000 will be used to make design improvements to our products, including our disposable products to allow us to market directly to our current customer base as well as enter into new markets. Design improvements to our hardware and disposable product entails modifying our hardware product to allow only our disposable products to be connected directly to our Toxygen hydro-colonic hardware. These and other improvements will allow the Company to have a unique product offering and increase our disposable product sales whereas only the DRC disposable product can then be utilized on our Toxygen hardware and not our competitor disposable products. These product modifications will allow DRC to remain competitive in a changing environment.

Our Company has never been profitable and we have had to rely on debt and equity financings to fund operations. There is no assurance that the business activities of DRC will achieve breakeven status by the end of 2014. Significant delays in achieving breakeven status could affect the ability to obtain future debt and equity funding. These factors raise substantial doubt about the Company’s ability to continue as a going concern. After auditing our financial statements, our independent auditor issued a going concern opinion and our ability to continue is dependent on our ability to raise additional capital. Currently there is a substantial doubt in the Company’s ability to continue as a going concern.